Clive Bundy,an American symbol
May 4, 2014 20:23:29 #
LAPhil wrote:
None. You wouldn't be paying 23% of your income, you would be paying a 23% SALES tax, i.e., on everything you purchase. That's the whole purpose of the fair tax, to eliminate the income tax.
I may not have explained properly. You are issued a voucher for about $1000 or so, every month. You use this for any purchase you wish, and it is completely tax free. When this is used up, the rest of your monthly expenditures are taxed at 23%. This replaces Income Tax, various taxes on things like gas and groceries. Just about fifty cents of every dollar you spend goes for various taxes, both obvious and hidden. The Fair Tax replaces this with the 23%. This is a very simplistic explanation, but the reasoning is replacing the system which taxes you, one way or another, at about 50% and replace it with one that taxes you at about 23%.
May 5, 2014 06:27:47 #
Loki wrote:
I may not have explained properly. You are issued ... (show quote)
But that would still only be Federal taxes. You would still have State and local taxes to contend with, pushing your tax rate above the 23%.
May 5, 2014 10:17:27 #
Tyster wrote:
But that would still only be Federal taxes. You would still have State and local taxes to contend with, pushing your tax rate above the 23%.
Quite frankly, I am not sure how that part works. I have misplaced the book before I finished it. I do know that at least part of the State taxes would be impacted by this, as part of them go to the Feds, anyway.
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