Budget & Taxes | Forum profile

Quote: Originally Posted by Shiva_TD The calculations are based upon a single individual and not a family of four. Ah. I see the disconnect. The initial analysis I did was based on a family of four. A single person would get a much lower "prebate" payment under the fairtax so that your analysis would not be comparing similar situations. Quote: Additionally, from what I recall the EITC only applies to individuals who earn...

Quote: Originally Posted by Iriemon You keep talking about additional cash flow. What additional cash flow? Current : Monthly income - $1750 Total cash - $1750 Expenditure - $1750 Fair tax : Monthly income - $1750 Prebate - $525 Total cash: $2275 Expenses 1750 + 30% = $2275 What extra cash flow? It all goes out to pay for the higher sales tax. OK, for illustration let's assume your rent is $875 is due on the 4th of the month and you are...

Quote: Originally Posted by Iriemon Whose going to police the inevitable black market? Whose going to make sure that companies are collecting taxes on goods they sell? Whose going to police whether buyers are legitimate non-final users? Whose going to police smuggling to avoid the tax? This has been previously addressed. In the 45 states which have a sales tax already the states will enforce the law just as they do for their retail sales tax....

duda: It is a given "eventually." Otherwise, a new company coming in will blow the old ones out of the water by taking lower profit margins and this having, much lower prices. It may not be immediate, but eventually prices come down. Quote: Originally Posted by Iriemon That is false. Corporations will maximize profit irrespective of the tax applied. If corporations could make more money by raising prices on their products,...

I think it's safe to say that everyone except illegals, criminals, tax gurus, IRS agents, lobbyists, and politicians will win at least slightly with the FairTax. Yes, some people will win more than others. I'll not win as much, for example, as someone who currently does NOT save for retirement with ROTH IRAs. When the FairTax comes, I MIGHT estimate that I'd have a few more dollars if I'd kept my retirement moeny in a...

Quote: Originally Posted by Iriemon The fairtax is a tax scheme and has nothing to do with expenditures. The IRS annual budget of about $11 billion [ http://www.gao.gov/new.items/d07719t.pdf] is only about 1/3 of a percent of total expenditures, so even if the Govt completely eliminate all expenditures on tax collection the effect on the budget would be negligible. Plus by some estimates the cost of enforcing a consumption tax would be just...

Quote: Originally Posted by indago And government would surely comply, and reduce these "expendatures"... Probably not. And yet the American people continue to elect the same morons into office.

What, precisely, is the point of our having a "debt limit"? Neither party ever observes it. The "debt limit" (or "debt ceiling") is regularly raised, as a matter of convenience. (Actually, more like a matter of financial irresponsibility.) It is as if a person with a credit card could unilaterally raise his (or her) own "limit" at will, simply by calling the credit-card...

Quote: Originally Posted by indago So, what kind of a FORM do they have to FILL OUT to get that? A postcard size form that provides names and valid Social Security numbers for each person in the household. The form would be filled out each year.

Quote: Originally Posted by toddwv I was against TARP and I'm still not sold on the idea, but this is good news. It's especially good news for the bankers who will no longer have their salaries and bonuses restricted nor be burdened by all the bad debt that they took on.