Recap of The Fair Tax: (A Consumption Tax)
- Inclusive tax at 23% (Really 29.9%). on new Sales. (No Tax on old sales.)
- Prebate (Prepayment) go to all U.S. citizens each month.(Ripe for Fraud.)
- Mortgage on homes? No discount.
- No Payroll Tax.(So all get Social Security even if you do not work.)
- Repeal the 16 Amendment(Income Tax).
- No requirement to Balance the Budget.
- No way to pay Charities.(And get credit)
- Tax on New Homes.(No Tax on Old Homes? (Will Kill House Building))
- No tax break if you are Old. (Even if you paid Income Tax all your Life.)
- No tax on College tuition.
Modified (Fair Tax changes)
- Inclusive/Exclusive Tax is based needs of Budget.
Exclusive Inclusive
$100 Item $100 130
$ 30 Tax at 30% or less $ 30 23%
___ ___ ___ Exclusive
$130 Total $130 130 * 23% = 29.9
Add tax to price of Item so all can see the tax rate.(Exclusive Tax) Like all Sales Tax. The Rate will go down under this plan, but how much I do not know? - Balance the Budget. Set the Budget based on the Actual Dollars Received last year, + or – known New or Difference Expenses. Pay down the Deficit to Zero “0” Over a few Years?.
- Instead of a Prebate (Prepayment). Food & drink Not taxed. And maybe Medicine Not taxed. Alcohol drinks will be Taxed. Marijuana will be Taxed.
- A way to pay Charities? If Total of bill is over $10,000 then up to 5% of Total Tax can go to 1 or 2 Charities.
- Keep track of income for Payroll Tax. Withhold Payroll Tax at same % (or greater %(to shore up Medicare and Social Security)) as now. Only “0” paid by Employee and All paid by Employer. (1/2 going to Employee account, 1/2 going to Employee spouses account.) (Have Companies not pay income tax, But pay All Payroll Tax.)
- No Tax on homes under $800,000.00. (On old and new homes so we won’t Kill House Building.) (On old and new homes over $800,000.00 will be Taxed.)
- No tax if you are over 65 years Old. (Even if you did not pay Income Tax all your Life.)(Tax on homes over $800,000.00.)
- Mortgage on homes? Over $800,000.00 Taxed No discount.
- Federal Reserve System. (What to do?)
- Repeal the 16 Amendment(Income Tax). (We make it Moot. in first 30 day’s ) (I will not sign the Fair Tax law unless in also Repeals the 16 Amendment and it not allow a VAT Tax and it Balances the Budget as in number 2.)
- What to do with the I.R.S.? (Have the I.R.S. check up on Consumption Tax (look at Budget, Payroll, Charities and College tuition.))
- No tax on College tuition (If you go bankrupt you pay 0).
- No tax on wages if you are under 18 years Old. (a babysitter, paper boy, house cleaner or other.)
- Changes in Tax Laws must be announced 3 months in advance.
- Congress can not be exempt from any Laws.
- No tax on College tuition.
“The Fair Tax is fairer then The Income Tax!” – Bill Todd 11/7/2018.
Or
Before the 16th Amendment a direct tax not apportioned according to the population of each state was unconstitutional. But go back to before the 16th Amendment (Apportioned according to the population of each state.) This allows the Each state to enact tax laws that the People want.
http://wikipedia.org/wiki/FairTax
(Last update: 2019-12-17)