News-Record.com

I guess the wife was Mrs. Helmsly.

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"Everyone pays tax on income from the first dollar earned ... and payroll taxes of 7.65 percent are withheld beginning with the first dollar earned."

True. Also true is the by February 9th, both Rush Ll and Howard Stern no longer contribute payroll taxes - because they are not progressive and are limited to about $90,000 a year. I'm sure

Think about that folks: In less than 10 weeks, 7.65% adds up to over $90,000. The rest of the year they keep that 7.65% because they've mad the "maximum contribution" - their "fair share" into a specific system we all know is about to be bankrupt. They live in a general system that allows them to "legally" be exempt from a specific system 80% of the time.

I'll assumr the LTE writer is correct on the "15 percent of the price of any product or service includes embedded taxes .. " .. but that's certailny an average. My business pays 25% because we have neither the accountants nor the lobbyists to wiggle out ..

http://www.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4SKPB_enUS205US206&q=corporations+paying+no+tax

I do not know much about the "The Fair Tax Proposal .. a national sales tax on new goods and services at the retail level." ... but that's probably where we're headed. Because it's fair? Not necessarily.

We're headed for a major re-write of the National Tax Laws as the only way to bail this country out of a horribly in-debt economy. By re-shuffling the cards they can HIDE all the BS we've been fed for the past - say 55 years since Johnson and Nixon really started spending America's monies .. on pet projects ..

So as a bail-out plan, I'm generically OK with it - because we have to do something - but watch out for a very ___l__o___n___g___ list of special interests and exemptions to assure the Carlyle Group gets first dibs.

I love these two sentences: "Carlyle's investors are public and private institutional investors and high net worth individuals. Carlyle does not disclose information about its investors."

http://www.carlyle.com/eng/company/l3-company737.html#1

I worry about who gets exempted, too, JDR. Too much wiggle room in there for those that can aptly exploit it.

I'm all for a 15% flat tax on all income over a nominal amount, somewhere around $20K. Individuals, corporations, everybody. No exeptions. No exemptions.

Let's just keep the current tax code. The thought of all the unemployed accountants, CPA's, Tax attorneys, vacant H&R Block and Jackson Hewitt offices as well as all the mind boggle finagling over this deduction, that credit and Turbo Tax software sales headed to the toilet is to much to contemplate.

"To make HR25 progressive and provide for low-income wage earners, a prebate would be paid each month to every person who has a Social Security number, to offset the amount of tax he would pay for goods and services up to the poverty level."

So, in effect, some people would receive OVER 100% of what they earn.

I'm not knocking this idea. But I'd like to see some real-life examples on how it would work and what that extra tax would be. I gotta feeling it would still be the middle-class who were left out of the 'progressive/regressive' equation.

"I gotta feeling it would still be the middle-class who were left out of the 'progressive/regressive' equation."

The middle class? Getting screwed on the taxes?

Say it ain't so!

In response to Mr. Rockefeller's first comment I certainly don't know if the wife in the cartoon was Mrs. Helmsley or not but on the second point, you are correct about the Social security portion of 6.25%. being maxed out but 1.4%, the medicare portion, would continue without a cap. The Fair Tax bill, HR25, fully funds social security and medicare and if Rush and Howard spend their millions on the life style I'm sure they live, they will pay their fair share.

Comment 2: 15% is an estimate, You can go to fairtax.org web site for more specific figures.

Comment 3: I can only hope the Fair Tax is where we're headed. It is certainly more fair than what we have now because it will make our taxes more transparent.

In response to Mr. Denzien's first comment. I'm sure nothing is perfect but this is a good starting point. The flat tax that you propose would still require filing an income tax return whereas when the Fair Tax proposal is passed there will be no tax returns to file. And you mentioned corporations paying taxes, read my article again. Only people pay taxes. Read Mr. Rockefeller's comment about his company paying 25% in taxes and compliance costs. Be assured that this 'expense' is added to the cost of the product or service he provides so who do you think actually pays that 25%.

Mr. Denzien's second comment: With the prebate no one would pay any tax up to the poverty level and then everyone would pay according to their lifestyle.

Now to reply to Mr. Hugh. If you want to keep our present code you must enjoy a good kick in the head. Even the IRS experts can't give you a correct answer to half of the questions they get asked.

Now to answer Mr. Nitpicker. No, the prebate would only pay the taxes they would be charged when they spent their pay up to the poverty level.

To wind up my comments. I would be happy to send an eighteen-minute DVD to anyone who would like more information about The Fair Tax Proposal. Also, Our community coordinator is a CPA/CFP and can give a presentation and answer any questions to any group. I also recommend visiting www.fairtax.org web site before drawing a final conclusion. I can be reached at 336-656-3992 and email bbtidwell@yahoo.com.
Bill Tidwell

Some of you have asked for a REAL LIFE EXPAMPLE OF THE FAIR TAX. It was short lived, only four years of trying it out, but it worked.

The Confederate States of America had it. There was no income or property tax. Since the south was blockaded and very few people had land and/or reportable income, they could not have import/export taxes or any of the others. So, a national sales tax was placed.

Although short lived, it got a very poor country through a four year war.

So, the fair tax works.

JWB

All

I am the Michigan 11th District Organization and Membership Director for the Michigan FairTax under the grass root Americans For Fair Taxation organization.

To take the mystery out of the FairTax be sure to visit www.fairtax.org Everything you need to know about the FairTax is there. Take 18 minutes to watch the video that provides a nifty overview:
http://easylink.playstream.com/fairtax/fairtax-multistream.wvx

If you like what you see then please sign the petition, study up, and get involved. Our Congressional sponsorship IS growing, so you and your representaives will not be alone.

But here are some basic facts about the current syste in place:

-- It costs Americans $250 Billion annually a year to comply with the IRS

-- The IRS bueaucracy costs another 12 Billion

Those $$ alone would help with the healthcare and Social Security debacle.

-- The income and payroll taxes (federal and state) embedded in all U.S. goods and services puts us at a about a 23% cost disadvantage domestically and globally. This drag causes an additional estimated $250-500 Billion drag on our economy.

-- And here's a big one: It is estimated that 11 TRILLION! U.S. dollars are off-shore avoiding the scrutiny of the IRS. If we move to the FairTax the IRS goes away, and this money is repatriated and infused back iinto our economy. Do you all think that might help some of the financial dillemas facing the U.S.?

-- The FairTax when implemented (it will by necessity) it is estimated that interest rates will be reduced by 1/3. Do you think that might help with first time home buyers!? Can you think of anything else lower interest rates would be to our advantage?

-- The immediate effect is estimated to be a 10-14% improvement to our over all economy.

-- The FairTax IS NOT a tax upon a tax. It is revenue neutral. A $100 toaster will still cost $100 at retail.

-- Drug dealers, criminals, and scofflaws, don't get off the hook! Everyone pays the FairTax when they buy goods and services at the point-of-sale on new stuff only. Used anything is not taxed. The FairTax dispenses with double and triple taxation once and for all.

-- And importantly EVERYONE gets amonthly rebate against the FairTax for necessities up to the poverty level, thus making the FairTax PROGRESSIVE. The 'poor' don't pay any taxes!

The FairTax is worth checking out. Please do!

At this point each of the states also has a website. The states will lead the way! In Michigan the website is www.fairtaxmi.org

www.fairtax.org

ALSO! This is powerful stuff. Please take the time to visit Aaron Russo's website. The entire documentary is 1 hour 39 minutes and is a real eye-opener. You may want to view the shorter trailers first to get a flavor of the documentary.

Academy award winner Aaron Russo's documentary and clips located at this web-site http://www.freedomtofascism.com/