cold iron Loc: White House

The Fair Tax is a huge sales tax for everyone. 27% if my memory serves me. Yes they claim the cost of things will go down, but there is zero proof of that. Retired people on fixed income will pay 27% of there income on food, close, what ever they have to buy. Very dumb program. The Flat Tax is the most simple, Ireland has installed it. Hundreds of Corps have moved there and not because of the weather. The left hate it as you can see by some of the posts here and are trying to convince everyone it's bad. They are good at going it. If the Flat Tax can also wipe out all other Federal taxes if we can keep the libs from sticking there nose it the plan.

Not-a-RINO Loc: Michigan

I found Amazon.com is selling the book for a penny plus $3.99 shipping; Thriftbooks has it for basically the same price in case you want to buy a copy. My suggestion is to ask a friend or neighbor to check to book out free from your library the next time they are near it.

Here are some of the main points under the Fair Tax:

***All items we buy today have about 22% hidden tax applied to the price we pay as only individuals pay tax, not companies;
***EVERYONE gets a prebate check to cover sales tax on all essential services based on their family size;
***There are no taxes on your paycheck;
***Everything you buy new is subjected to a 23% sales tax. Although that may sound like a lot, figure this: You go into an electronics store and you see an item costing $100. Remove the 22% hidden tax on it and now the price is $78. Now apply the 23% sales tax and you get $95.94 (78 X 1.23). You are now buying that item with your whole paycheck and the prebate check so the overall cost is LESS.
***All the items in our seaports waiting to be exported no longer have tax on them. Now American goods are not only the best, they are the lowest cost. The economy booms;
***Businesses that left our shores come back as there are no longer any tax on their business - again, more jobs;
***Everyone pays - prostitutes, thugs, dope dealers, people "working under the table" because every time they buy anything, they pay the same rate of tax as law abiding people do.
***April 15th is a nice, spring day - no income tax forms to fill out.

The only drawback the authors could find is the American people have to keep an eye on those reprobates in Washington to make sure they don't jack up the rate or play with the amount the prebate check is that you get.

The authors also point out many politicians use the tax system as a way of granting favor or buying votes. Honestly, do you care if this power is removed from them? I certainly don't.

I am sure the book does a better job of explaining than I have done here as I am merely listing points from memory. It is a good, workable and fair system which would greatly expand our economy. I read about six or seven years ago American business spends some $500 billion preparing to pay tax by hiring accountants, lawyers, consultants, recordskeeping, etc. If business now could use that money to grow their enterprise, that would only mean more jobs for our people. Of course, those who try to keep millions of people enslaved to government handouts won't like this plan at all.

I hope this makes the Fair Tax easier to understand. Have a fabulous day!

cold iron Loc: White House

What is not said..

EVERYONE gets a rebate check to cover sales tax on all essential services based on their family size; Ask yourself who is making out 200,000 checks a month?

Where does it say they have to remove to 22% that is now charge? Not addressed.

Do you remember when sales tax came out, it was 2% what is it now.

Not-a-RINO Loc: Michigan

You mentioned you had not read the book, so I will address your question for you.

You are right that the 22% price could remain the same, but according to the book's authors, the competition would destroy the business doing so. They cited airlines had a tax (or fee) removed which could have turned a big profit for them should they have decided to keep it. However, one small airline decided to pass the savings onto their customers and all the rest followed suit as no one would fly on their planes at a much higher price.

Competition has two main benefits: (1) It improves quality; and (2) is lowers prices. If your competitors had prices which are 22% less than yours, how long do you think you would be in business?

As I stated in a previous posting, I am certain the book will do a better job of explaining the Fair Tax than I am. Check your local library for a copy. Have a pleasant day.

Albert Maslar Loc: Absecon, NJ

There are millions of books but impossible to read all. Suffice it to say that those fair tax ideas and the "prebate" another massive Sibelius-type mandating bureaucracy with thousands of unread pages. Care to read a book? Okay, here is my 3-page book:

3-Page National Sales Tax:-1% Universal Medicare, 1% Deficit, 1% Debt, 20% Max Business & Personal Tax
33. Mandate annual tax filing for all citizens, legal or not, income earned or not, to be used as basis for public assistance, annual census, and as basis for a Medicare version of Universal HealthCare, funded as a by-product of the National Sales Tax (#36). Graduated Income Tax tables (#49) should be identical for corporate, partnership, individual filing; charitable and non-profits. Eliminate all tax loopholes and subsidies.

34. On 1040 charge $1 for each person listed to create annual census count. Total dollars charged equal total legal population that can be further refined by city, state, zip, etc.

35. Make employee paid health premiums deductible from taxable income in addition to STANDARD DEDUCTION; on parity with non-taxable employer paid health insurance.

36. Institute a 3% National Sales Tax (NST) with NO exceptions for resale, charity, non-profits, religious, education, or government. The many cannot be continually supported by the diminishing few. A 3% NST may raise up to $7 Trillion annually, double the current budget, reduce national debt, spread tax burden to all residents, legal or not. Allocation: the 1st 1% toward Budget, the 2nd 1% toward debt reduction, the 3rd 1% for Universal Medicare (UMC identical to Medicare plus monthly) for all legal residents.

37. Dedicate first 1% NST to Universal Medicare to automatically eliminate most State Medicaid benefit requirements, costs, and overhead. State Medicaid mandated costs are virtually eliminated, reducing State budget shortfalls and tax requirements.

38. According to a 7/6/10 analysis by attorney Lanny Davis published in The Hill, there were $755 Trillion in total transactions in the U.S. in 2008; $443 Trillion if exempting stock transactions. Accordingly NST on stock market transactions should be set at 1/2 of 1%, beating the International movement toward the inevitability of this type of tax. This 1/2% stock market transaction tax will inhibit the negative and controversial effects of High Frequency Trading (HFT) that causes artificial volatility as traders execute trades in milliseconds capitalizing on penny spreads and transaction speeds in the blink of an eye, not available to ordinary investors. HFT operates in a betting parlor atmosphere that is more gambling than investing, and may eventually be the vehicle to collapse the market as it already has on one fateful day when HFT was a contributing factor in the flash crash of May 6, 2010. Reuters reported that a computer-driven sale worth $4.1 billion by money manager Waddell & Reed Financial Inc. triggered the May flash crash that set off liquidity shocks that created havoc, instantly wiping out substantial stock market values before anyone knew what happened and why. A report exposed the relationship between E-Mini Standard & Poor's 500 futures and S&P 500 “SPDR” exchange-traded funds detailing how HFT algorithmic trading saps liquidity and rocks the marketplace.
Memo: US receives $200 Billion monthly revenue; $2.4 Trillion annually; spends about $320 billion monthly, $3.84 Trillion annually, creating $1.4 Trillion annual deficit.

39. There should be no exemption for sales of any product or service whether for Resale, Church, Government, Education, Private or Public organizations; Imports, Cash, or assets transferred out of the country, including corporate transfers to foreign subsidiaries; Tax On-Line sales and sellers, EBay, Private sellers, Barter, PayPal and Credit Card Companies. Payment Clearing Banks would be depositories for NST, similar to deposits of payroll taxes while Government 3% tax payments are to be used for that particular government debt reduction.

41. An estimated 48%+ of citizens pay no Income Tax while 24%+ do not pay Payroll Tax. This jeopardizes a Balanced Budget as too large a number of households owe nothing in federal taxes, casting an ever increasing burden on the diminishing number of actual tax payers, a situation that is not sustainable. The 3% National Sales Tax will level the playing field by spreading the burden to all and give new life to the Bible story of the “Widow’s Mite,” who gave her last two coins, and biblical tithing that is the same for all, large or small, rich or poor.

42. Money and benefits received for NOT working should not be tax-free or treated differently than the same amount of wages and benefits received by actual workers. There are documented cases of welfare recipients benefiting unfairly by having benefits equal to an actual worker’s wages but employees must pay taxes and benefits out of their wages and the equivalent “Earnings” to a welfare recipient are free of any of those charges.

43. A welfare recipient receiving $30,000 in “BENEFITS” receives substantially more than a taxpayer earning $30,000 because taxpayers pay Federal, State and Local taxes, and work-related expense while Welfare recipients get a free ride without related costs of working. Housing grants, food stamps, medical benefits, and other benefits must be paid for by the taxpayer worker who is “penalized” for working.

47. Taxable Income Schedule For Individuals & Corporations After deducting personal exemptions $5,000 each, plus basic Standard Deduction of $10,000 plus cost of medical insurance paid, plus additional 5% on Income over $100,000; in lieu of itemization. Treat all income alike; Remove all income distinctions; earned; unearned; capital gains, etc and remove ALL loopholes, personal and business.

50. Corporate tax rates should be identical to the above modified Personal Taxable Income Schedule except for personal exemptions, personal itemized deductions, and standard deductions. All industry specific deductions should be eliminated.

51. Dividends paid would be deductible;
52. Disallowance for funding or contributions to Foundations;
53. Full deduction of fixed assets in lieu of depreciation;
54. Disallow deduction for non-cash amortization;
55. Disallow deduction of political contributions and cost of lobbying;
56. Disallow deduction for foreign payments and expenses;
57. Subject Gross Contractor Pay and Cash Payrolls to 3% NST
58. Tax foreign earnings for companies listed on U.S stock exchange;
59. Eliminate tobacco and industry specific subsidies & deductions;
60. Eliminate farm subsidies for non-family farms;
61. Eliminate all loopholes and industry specific deductions.

48. Effective tax rate on Taxable Income of $100,000 2.74%
Effective tax rate on Taxable Income of $1 Million 7.47%
Effective tax rate on Taxable Income of $1 Billion 19.88%

49. Graduated Income Tax Table: Personal, Business, Corporate
Graduated rates in order to encourage small business for job creation.
TAXABLE AMOUNT TAX RATE TAX DUE PCT PAID
Up to $ 5,000 0.3% $ 15 0.30%
Up to $ 10,000 0.5% 40 0.40%
Up to $ 20,000 1.0% 140 0.70%
Up to $ 30,000 1.5% 290 0.97%
Up to $ 40,000 2.0% 490 1.23%

Up to $ 50,000 2.5% 740 1.48%
Up to $ 60,000 3.0% 1,040 1.73%
Up to $ 70,000 3.5% 1,390 2.00%
Up to $ 80,000 4.0% 1,790 2.24%
Up to $ 90,000 4.5% 2,240 2.49%

Up to $ 100,000 5.0% 2,740 2.74%
Up to $ 200,000 6.0% 8,740 4.37%
Up to $ 300,000 6.5% 15,240 5.08%
Up to $ 400,000 7.0% 22,240 5.56%

Up to $ 500,000 7.5% 29,740 5.95%
Up to $ 600,000 8.0% 37,740 6.29%
Up to $ 700,000 8.5% 46,240 6.61%
Up to $ 800,000 9.0% 55,240 6.90%
Up to $ 900,000 9.5% 64,740 7.15%

Up to $ 1,000,000 10.0% 74,740 7.47%
Up to $ 2,000,000 12.0% 194,740 9.72%
Up to $ 3,000,000 13.0% 324,740 10.82%
Up to $ 4,000,000 14.0% 464,740 11.62%
Up to $ 5,000,000 15.0% 614,740 12.29%

Up to $ 10,000,000 16.0% 1,414,740 14.15%
Up to $ 20,000,000 17.0% 3,114,740 15.57%
Up to $ 30,000,000 18.0% 4,914,740 16.38%
Up to $ 40,000,000 19.0% 6,814,740 17.04%
Up to $ 50,000,000 20.0% 8,814,740 17.63%

Up to $ 100,000,000 20.0% 18,814,740 18.81%
Up to $ 1,000,000,000 20.0% 198,814,740 19.88%
Up to $ 2,000,000,000 20.0% 398,814,740 19.94%
Up to $ 5,000,000,000 20.0% 998,814,740 19.97%

Albert Maslar CPA (Retired)
128 Huron Ave.
Absecon, NJ 08201-2022
609-677-0069
albertmaslar2@gmail.com

adennya Loc: Berthoud, CO

[Not-a-RINO] wrote:
"As I stated in a previous posting, I am certain the book will do a better job of explaining the Fair Tax than I am. Check your local library for a copy. Have a pleasant day."
_____________
The best exposition of The Fair Tax is on the official web site.

www.fairtax.org

Please take a look there. It will answer all your questions and address all your arguments. The plan is quite simple, really. I don't see how anyone can not be excited about the idea, except the politicians and bureaucrats who would lose their power for social manipulation.

Albert Maslar Loc: Absecon, NJ

Don't read the dumb book that solves nothing but is pure theory. Read my 3-page plan and new lower tax rates above; real simple solutions simply stated, and NO PREBATES, another government waste. 3 pages are not just words, bur SOLUTIONS, point-by-point. I wrote a solution, not just a theory.

cimiron

23%, but, you are only taxed on what you spend, in other words you get your whole paycheck no more deductibles

donc711 Loc: North East Kansas

What a sales tax of 23%?

faithistheword

Prebates-shmebates!

How is that different than the unearned tax rebate?
We've got to stop all those phony entitlements, or we'll never be America again!

Lou Loc: Florida

What , do you want " Free Stuff " ??? All those things you listed involve people to do the work and material to supply them .
There ain't no free lunch ...someone down the line pays . Go live in a less populated State whose costs would naturally be less .
Private citizens are paying 18-20% NOW , in addition to State and City Taxes where they apply .

A flat tax would be the FAIR WAY . If it were to be two tiered , that is no problem , our system is ATLEAST THAT NOW . Everything you buy is two tiered from your catv, telephone , retail etc .

Albert Maslar Loc: Absecon, NJ

Fair Tax, NOT Flat Tax, Solves Problem Of Proverbial 47%

Basically, Flat Tax features one low tax rate with no deductions or special interest loopholes. Flat Tax will not solve problems resulting from lack of participation in funding government by the proverbial 47% who pay no income taxes; consequently they will pay NO Flat Tax either. Only the names will have been changed to protect the guilty.

The VAT tax is European style consumption tax that is rife with loopholes and gross avoidance, and has resulted in EU VAT rates in the mid 20% range which is totally counter-productive.
The answer to the present income tax code is not the Flat Tax, but the “Fair Tax” as encompassed in the Maslar “Three-Page Tax Plan” (TPTP) that imposes a no-exception, no exemption 3% National Sales Tax (NST) across the board, taking the poisonous sting out of lobbyist fangs.

TPTP makes spending of all organizations, for profit or not, along with 100% of the population, illegal or not, whether income is from legal sources or not, or from under the table, drugs, crime, investment, gift, or whatever, subject to the 3% NST when spent. According to a study published by Lanny Davis in ‘The Hill” tax revenues would be about $4 Trillion for budget, $4 Trillion to pay down National Debt, and $4 Trillion for Universal MediCare (UMC) for every legal resident in the US. UMC will save many States from bankruptcy, as State administered budget-busting Medicaid will no longer be necessary.

Wall Street type transactions would be taxed at 1/2 of 1%, putting smaller investors on a par with giants that do "High Frequency Trading (HFT) in nano seconds while ordinary investors are the first to lose and the last to gain. Programming errors caused panic that dropped a thousand points on the Dow Jones Industrial Average in minutes.

Congressional Budget Office (CBO) must score the TFTP, but it takes a Representative to do the submission, difficult for an individual, as most Representatives ask for zip code first but do not allow e-mails from anyone outside their district.

To further uncomplicate present unintelligible tax laws, nuisance and death taxes would be eliminated. In the event NST does not produce the $12 Trillion annual revenue projected, there would be a simplified Income Tax (SIT) that treats ALL income equally; no loopholes, special treatment, exceptions, or exemptions. SIT reduces income tax rates to a graduated 20% max, for all entities, personal and business. The following are examples of effective tax rates under the SIT plan:

Effective tax rate on Taxable Income of $100,000 2.74%
Effective tax rate on Taxable Income of $1 Million 7.47%
Effective tax rate on Taxable Income of $1 Billion 19.88%

Once the NST functions and produces tax revenues as projected, the IRS would be history as well as the temporary SIT.

“Three-Page Tax Plan” and/or Six-Page” Plan To Fix It All” available from albertmaslar2@gmail.com

Not-a-RINO Loc: Michigan

What you have described is quite interesting and I will have to look into it more. One thing is absolutely certain: ANY system is better than what we have now.

I am not a proponent of the graduated income tax as that is found in the Communist Manifesto, a document which hardly supports freedom. Inherently, it is unfair charging one group of people a different RATE than another. That goes both way, too. You can't charge 53% of the workforce with tax while allowing the other 47% get a free ride and allow them to vote for more tax and spenders in hopes they get more free stuff.

Regardless of any new, more equitable tax system, it MUST be coupled with:

1. A Balanced Budget Amendment
2. Line Item Veto with a congressional override of 50% +1 vote (typical veto overrides require 2/3 vote of both houses)
3. An audit of the Federal Reserve
4. Federal term limits

Of course, this won't happen until the current regime and its sycophants are dispatched to retirement or long prison terms by the People.

I am not a supporter of government-run medicine as well. There are MANY ways of reducing premiums to make health care much more affordable and accessible without death panels, rising insurance rates of nearly 100% and taxing businesses into ruin or having to slash their full-time workforce into an all part-time workforce. For the poorest of citizens, I would support subsidizing their premiums based on income, but in no way would I want the government to fix health care as it did the post office, Social Security and Medicare.

We face many problems as a nation and I firmly believe these issues are not insurmountable. However, nothing will be done until the people wake up and demand action. Far too many ignorant, indoctrinated and apathetic people want to put government on auto-pilot under the guise everything will run smoothly without their oversight. Too many others are enslaved on the government plantation as they are only interested in collecting everything they need to live from day-to-day from Uncle Sam's generosity with taxpayer money. What's worse is many of these people vote.

While we can keep dialogue open and discuss solutions, there has to be teeth added by the People. Until that happens, we can count on more of the same old, same old.

cimiron

yes, but we also have to recind the 16th amendment so they can't up that tax amount

Not-a-RINO Loc: Michigan

Agreed! :thumbup: