Happy Tax Day, and Why the Top 1% Pay a Much Lower Tax Rate Than You

[Pio1980]

The fair tax looks good on paper but would unavoidably run into exemption details, similar to the food assistance restrictions, that would drag it into it's own bureaucratic maze. Otherwise no doubt someone(s) with Golden Rule privileges would find ways to 'game' it.
In the end nothing would change, barring blatant intolerable over-reach the whole country is for sale to the highest bidder(s) thanx to the Supremes. Even Hitler with his ultimate authority knew the limits of public tolerance, until his psychosis took him over and the distractions of the ultimately devastating war he brought made prostrations irrelevant.

[JJIII]

Originally Posted by noonereal

nad why not a fair "progressive" tax?

and how about FICA? Would you eliminate the cap?

When I was working I loved the cap, loved it. Between the cap and all the loopholes in withholding I pretty much knew my tax bill every year before New Years dinner was over.

From the site FAQ section...



"Exactly what taxes are abolished?

The FairTax is replacement, not reform. It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes."

[JJIII]

Originally Posted by Pio1980

The fair tax looks good on paper but would unavoidably run into exemption details, similar to the food assistance restrictions, that would drag it into it's own bureaucratic maze. Otherwise no doubt someone(s) with Golden Rule privileges would find ways to 'game' it.
In the end nothing would change, barring blatant intolerable over-reach the whole country is for sale to the highest bidder(s) thanx to the Supremes. Even Hitler with his ultimate authority knew the limits of public tolerance, until his psychosis took him over and the distractions of the ultimately devastating war he brought made prostrations irrelevant.

From the site FAQ section...



"Why not just exempt food and medicine from the tax? Wouldn't that be fair and simple?

Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped."

[Pio1980]

There it is.

Originally Posted by JJIII

From the site FAQ section...



"Why not just exempt food and medicine from the tax? Wouldn't that be fair and simple?

Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped."

[JJIII]

Originally Posted by Pio1980

There it is.

I'm not sure what you mean.

[Ike Bana]

Originally Posted by 4-2-7

Lets see if I earned two million and I only had to pay 10% in taxes.

And Tom had to pay 10% of his earning. Who do you think would be contributing more to society.

What happen to equality?

You can't be this stupid. (I can't be this stupid suggesting you can't be this stupid.)

It's not about the total dollars in taxes you idiot. It's about the percentage of income weighted against what it costs to live in this country after taxes.

You understand that the basic expenses...food and clothing and transportation and housing...don't cost the guy who earns two million any more than it costs the guy making $16K. And if it does, it's only because the rich guy chooses to spend more than the poor guy.

But let's say that the rich guy has expenses on the low side of $75K/year for his living expenses, and that after taxes he's clearing $1.5 million (and it's probably way more than that). It's simple math 5 below...the rich guy has only a stinkin' $1,425,000 left. What a shame that he's being robbed by the poor guys like this, eh?

I guess you can be this stupid after all.

[Ike Bana]

Originally Posted by JJIII

Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor.

They only spend more because they choose to. The poor generally don't have much of a choice as to what it costs to feed, clothe and house themselves, and get around to work and to places where they can feed and clothe themselves.

Respected economists who use comparative costs of living have an agenda and are shills for the people who pay their salaries.

[piece-itpete]

It's the GOP? Who extended the tax cuts?

Pete

[Rajoo]

Originally Posted by piece-itpete

It's the GOP? Who extended the tax cuts?

Pete

Who enacted the tax cuts in the first place? It's near impossible to take back a gift.

[JJIII]

Originally Posted by Ike Bana

They only spend more because they choose to. The poor generally don't have much of a choice as to what it costs to feed, clothe and house themselves, and get around to work and to places where they can feed and clothe themselves.

Respected economists who use comparative costs of living have an agenda and are shills for the people who pay their salaries.

That is what the "Prebate is all about. See here...



"How does the prebate work?

Under the FairTax, all Americans consume what they see as their necessities of life free of tax. While permitting no exemptions, the FairTax (HR25/S122) provides a monthly universal prebate to ensure that each family unit can consume tax free at or beyond the poverty level, with the overall effect of making the FairTax progressive in application. There is no marriage penalty as the couple gets twice the amount that a single adult receives.

While everyone pays the same tax rate at the cash register, the prebate results in effective tax rates (annual taxes paid divided by annual spending) that increase as the level of spending increases a progressive tax rate structure. For example, a person spending at the poverty level has a 0% effective tax rate, whereas someone spending at twice the poverty level has an effective tax rate of 11.5%, and so on.
2013 Prebate FAQ"

http://www.fairtax.org/images/conten...e_2013_FAQ.png