tag:blogger.com,1999:blog-3776665703590564248.post8240879844581340143..comments2024-03-27T01:57:19.605-04:00Comments on Return To Excellence: FairTax Bill Reintroduced To The HouseReturnToExcellence.nethttp://www.blogger.com/profile/18149859814999976879noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3776665703590564248.post-36264696004724090042013-01-14T22:56:25.180-05:002013-01-14T22:56:25.180-05:00Doug - Thanks for the excellent article summarizin...Doug - Thanks for the excellent article summarizing the important features of the Fair Tax.<br /><br />I need an explanation of "the prebate equals 4 % of the FairTax 23 % rate". I realize that if there is no prebate then the rate would be lower.<br /><br />A Happy & Blessed New Year to you and Carol!<br /><br />RTE - I refer to question #11 of the Workshop Training Session of April 2009:<br /><br />11. How does the prebate compare with the income tax system's deductions, preferences, loopholes, credits, & favors. Wouldn't it be easier to just exempt items like food & medicine from the FairTax? What do you say to someone who asks if taxing food & medicine hurts the poor?<br /><br />The current income tax system doles out about $456 billion more to favored taxpayers then the prebate provides to everyone with a valid Social Security number in ensuring that no one pays tax on the cost of the basic necessitates of life. The prebate is estimated to cost $489 billion per year (about 4% of the 23% meaning that the FairTax rate would be 19% without the prebate.) Compare that with the $945 billion cost of income tax deductions, preferences, loopholes, credits, favors as estimated by Joint Committee on Taxation. The prebate is half the cost of the current system's deductions, preferences, loopholes, credits, & favors & unlike the latter treats all Americans equally.<br /><br />With regard to items like food & medicine Ken Hoagland has pointed out that "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."<br /><br /><br />JORnoreply@blogger.comtag:blogger.com,1999:blog-3776665703590564248.post-364937323790669662013-01-09T18:41:26.618-05:002013-01-09T18:41:26.618-05:00I read the RTE report on the reintroduction of the...I read the RTE report on the reintroduction of the bill. Thanks for sending it. Your opening quote by Margaret Mead is one of my favorites.STnoreply@blogger.comtag:blogger.com,1999:blog-3776665703590564248.post-56968413933278337432013-01-08T19:58:18.288-05:002013-01-08T19:58:18.288-05:00Thanks Doug - this is an excellent, well timed upd...Thanks Doug - this is an excellent, well timed update. The Fair Tax will prioritize the much more productive private sector of our economy. Hence the odds of greater prosperity (ex back to periods of 3% to 5% GDP growth). Your site is best source of FT details. I forward your site in my blogs and tweets. Expect more reads and thus greater awareness.<br /><br />Economics501noreply@blogger.com