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

[icenine]

Originally Posted by JJIII

Again...

www.fairtax.org

yeah if you want to live in the 1870s

[JJIII]

Originally Posted by icenine

yeah if you want to live in the 1870s

Explanation please.

[Ike Bana]

Originally Posted by JJIII

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

OK...my eyes start glazing over when I'm reading this kind of stuff, and even worse looking a graphs.

All that needs to happen is the really big bucks types pay, what is IMO and the opinion of many others, their fair share...and the country needs to stop being world cop. We need one carrier group for each coast instead of 11 cruising around the world looking for trouble. And we don't need no F-22 goddam Raptors.

[merrylander]

Read both paragraphs and who or what determines what "spending at the poverty level" is exactly?

[JJIII]

Originally Posted by merrylander

Read both paragraphs and who or what determines what "spending at the poverty level" is exactly?

From here...

http://www.investopedia.com/terms/f/fpl.asp

"Definition of 'Federal Poverty Level - FPL'

The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL. "

Another explanation...

http://useconomy.about.com/od/glossa...erty_Level.htm


More from www.fairtax.org



"How does the FairTax protect low-income families and individuals and retirees on fixed incomes?

Under the FairTax Plan, poor people pay no net FairTax at all up to the poverty level! Every household receives a rebate that is equal to the FairTax paid on essential goods and services, and wage earners are no longer subject to the most regressive and burdensome tax of all, the payroll tax. Those spending at twice the poverty level pay a tax of only 11.5 percent -- a rate much lower than the income and payroll tax burden they bear today.

Under the federal income tax, slow economic growth and recessions have a disproportionately adverse impact on lower-income families. Breadwinners in these families are more likely to lose their jobs, are less likely to have the resources to weather bad economic times, and are more in need of the initial employment opportunities that a dynamic, growing economy provides. Retaining the present tax system makes economic progress needlessly slow, thus harming low-income people the most.

In contrast, the FairTax dramatically improves economic growth and wage rates for all, but especially for lower-income families and individuals. In addition to receiving the monthly FairTax prebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burdens associated with each. They pay no more business taxes hidden in the price of goods and services, and used goods are tax free."

[JJIII]

Originally Posted by Ike Bana

OK...my eyes start glazing over when I'm reading this kind of stuff, and even worse looking a graphs.

All that needs to happen is the really big bucks types pay, what is IMO and the opinion of many others, their fair share...and the country needs to stop being world cop. We need one carrier group for each coast instead of 11 cruising around the world looking for trouble. And we don't need no F-22 goddam Raptors.

Ok, so you don't want to try and understand what it is all about or how it works, but you are against it anyway.

[Tom Joad]

All I need to do is look at who the supporters of the so called "fair tax" are to know that it's a scam.

[merrylander]

So if everybody pays less than they do today the Mational debt will climb?

[JJIII]

Originally Posted by merrylander

So if everybody pays less than they do today the Mational debt will climb?

Maybe this will explain.

http://www.fairtax.org/site/PageServer?pagename=FAQs



"How does the FairTax affect government spending?

The public must remain vigilant to ensure that the economic gains caused by the FairTax benefit the people and the causes they deem worthy. However, it is easier to determine if your elected representatives are acting in your best interest. Legislators can more easily be held accountable for their decisions. For the first time in decades, it is simple to see whether a politician is advocating an increase in taxes or a restraint on government spending as the economic pie gets bigger. This is not the case today."

[JJIII]

I've got to go for a while. I would urge everyone to take an honest, open minded look at the website and not give a knee jerk reaction. A few people here have and I appreciate that. I really think this plan is a lot better than what we have in place now. Is anyone happy with the way things are done presently? Should we not at least try to come up with something better?