There was a letter in Sunday's Tribune from David B. Patterson, IN-9 Director for Fair Tax, New Albany. The letter interested me because I was unsure of what the term fair tax actually meant.
Mr. Patterson questioned why Baron Hill would not admit that this tax would help save our Social Security system and reduce our debt. On the surface this proposal sounded intriguing. He went on to urge everyone to read the 133 pages of HR25.
However, Mr. Patterson left out an important part of this resolution. Since there would no longer be an income tax, the replacement would be a 23% sales tax. This tax would be levied on every purchase, even food. So a $1.00 loaf of bread would cost $1.23 and a $2.29 gallon of milk would cost $2.77. Now who do you think would be most hurt by this tax? A person making over $500,000 a year or a person making under $30,000 a year? Maybe the person with the higher salary would purchase more big ticket items (or maybe not) but the person on the lower end of the scale must purchase food, gasoline, cleaning products, etc.
If Baron Hill is hesitant to support this tax I don't blame him. And I am glad that he is not in support of such a rip off on the middle class and working class people.
Personally, to be fair, I think that no one making under $30,000 a year should have to pay any income tax. And the people making more would only pay tax on the amount over $30,000. That is what I call a fair tax.
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10 comments:
Shirley,
If you are going to continue to make Fairtax price estimates, you need to understand a couple of facts. (1) Before adding the sales tax, business costs will be reduced by 9% when business tax costs go away. (2) You have to add 30%, not 23% to costs in order to get a 23% tax inclusive retail price.
Your $2.29 gallon of milk would cost $2.71, not 2.77. (2.29 x .91 x 1.30 = 2.71) Small difference, but accuracy counts.
Just out of curiosity, do you believe that all workers should pay Social Security/Medicare taxes? Under the Fairtax plan, due to the Family Consumption Allowance (prebate), 30 million working families would pay no net federal taxes annually , yet would still qualify for full pension and health care benefits when eligible. Compare that to current tax law where less than 1 million working families pay no income tax and qualify for refundable tax credits, such as EITC and Child Care, in an amount that totally offsets their 7.65% FICA payments. 30 million working families that pay no net federal tax doesn't sound like a good plan to me.
Good to have you back Shirley.
I agree with you Shirley, to me the “Fair Tax” sounds more like a shift to make lower income recipients share a greater burden, but I must add that I haven't spent much time learning about the "Fair Tax" proposals.
This world is not fair and a progressive tax structure, to me, is an acknowledgement of that, and the progressive tax structure is an attempt to adjust for it, but we do need tax reform.
to the Dutchman3. I have not had a chance to do further research on Fair Tax so please bear with me.
Shirley,
Take your time--I've been at this for seven years and have read almost everything there is to read about the Fairtax. Happy to answer any questions or refer you to sources.
Best regards,
I feel the same way about the property tax reform. It was a tax burden shift to the people who can't afford it.
Mitch didn't like the taxes he was paying on his 20,000 sq ft house.
9:45 You need to have your facts corrected. There are 68 police officers on the NAPD. Less than 19 live in the city.
You surely (along) with Mrs. Baird don't consider yourselves qualified to run for council.
You both buy what ever certain people tell you with out researching and asking questions.
Your alls comments make you look very @#$%!
Interesting how this last comment comes within a few minutes of the comment at kitchen table saying "right on FOS"
Come on Vicki way to drive traffic.
Too bad every fact in your blog is made up innuendo or just stupid.
Anon 6:08
What facts are you discussing? I did not mention the number of police officers in NA, I was talking about taxes.
And if you think you are qualified to run for council yourself why don't you?
loser in 2011 Baird
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