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Yeah, rents will go up, from $700.00 to $861.00 but so what???
All false.
Can you come up with some cold, hard numbers with specific examples to back up your statement?
No they do not!
For example Chris is currently paying 7.45% of his total income into social security and medicare tax. Doesn't matter if Chris gets laid off having to take a part time job earning $600 a month he will still pay 7.45% of whatever he makes into those taxes.
Meanwhile Bob is the top systems programmer at We'll Wreck Your Future computer game development where he earns $5,000 weekly for an annual income of $260,000.00.
But Bob is special, Bob will pay into social security until his income hits $117,000.00. which is probably early May, at which time Bob's social security taxes will STOP and he will see a $310.00 increase in his weekly paycheck. (Bob will continue to pay into Medicare which is not subject to earnings limits).
Folks, I am about as right wing as you'll even encounter but that scenario with Chris and Bob is unfair. The poor pay very little in terms of federal income taxes but they pay a lot in social security taxes.
The working poor, the destitute, pay 7.45% of their earnings in federal taxes and to me this is unfair.
And when they file....they will use the same tax code to get their money back....if they are smart.
I do know FICA is gone forever.....that is why I do not pay it.
If you don't understand the difference between renting and buying by now, you never will.
I understand the difference between renting and buying a house, but the FairTax is being presented as a CONSUMPTION tax, and in the context of CONSUMPTION, there is NO difference between renting and buying since the renter's consumption and the buyer's consumption are EQUAL!
This means that either FT treats renting and buying unequally, or FT really is social engineering and NOT a consumption tax!
I understand the difference between renting and buying a house, but the FairTax is being presented as a CONSUMPTION tax, and in the context of CONSUMPTION, there is NO difference between renting and buying since the renter's consumption and the buyer's consumption are EQUAL!
This means that either FT treats renting and buying unequally, or FT really is social engineering and NOT a consumption tax!
" there is NO difference between renting and buying" like I said, it is over your head.
I understand the difference between renting and buying a house, but the FairTax is being presented as a CONSUMPTION tax, and in the context of CONSUMPTION, there is NO difference between renting and buying since the renter's consumption and the buyer's consumption are EQUAL!
But they aren't equal. They never have been or will be either.
I purchase a new home for $100,000 to rent to you and my consumption tax will be $23,000 making the final purchase price $123,000.
You will rent this home for $800 a month which will end up costing you $984 once you tack on the 23% consumption tax.
I will send in $184, less a small fee that I get to keep since I am dong the governments work for them, keeping the $800 for myself.
When I spend the $800 I will pay a 23% consumption tax as well unless I purchase something used like maybe another used house.
Quote:
This means that either FT treats renting and buying unequally, or FT really is social engineering and NOT a consumption tax!
FairTax only applies to new homes and not used.
Contrary to what many may jump to conclusions on the 23% consumption tax will not, I repeat will not, add 23% onto the cost of a house.
Labor costs account for approximately 50% of a new homes price, except for California where bureaucratic parasites enjoy endless money banquets at the expense of people who actually work for a living, so assume $50,000. Of that $50,000 15.3%, or $7,650, is social security and medicare taxes which is hidden in the price you pay. Taking out social security and medicare taxes will reduce the price of your house by 7.65%.
The actual price of your home, after the added cost of social security and medicare taxes is taken out, is $100,000-(7.65%$100,000)=$92,350. It is the $92,350 that is subject to the 23% tax which would be $21,240 bringing the price of the new home to $113,590 and not the $123,000 everyone seems to want to jump to.
Personally I think it would be even less. Not just labor in building the house but what about the lowered labor costs at saw mills that saw the wood or concrete plants that make the mixed concrete? What about labor costs at cabinet shops that build cabinets? Yes, these taxes would be lowered as well.
Remember, the FairTax is not an additional tax it is a replacement tax.
" there is NO difference between renting and buying" like I said, it is over your head.
Is the FT a consumption tax or not? Is a buyer's housing consumption NOT equal to a renter's housing consumption? If a buyer's housing consumption and a renter's housing consumption are equal, shouldn't they pay the same amount of tax on their respective housing consumptions?
WHY should a renter pay more tax than a homeowner who enjoys equal consumption?
If that is not redistribution and social engineering, what do you call it? You call that Fair???
And when they file....they will use the same tax code to get their money back....if they are smart.
I do know FICA is gone forever.....that is why I do not pay it.
I can tell you think you are the only smart one here.
Having your own business and all, I can tell you are savvy and the only one that has ever done such a thing.
Maybe Chris can come to you for advice how to file and get his social security and medicare taxes back since that is the biggest share of taxes he makes on his putrid $40,000 income?
Matter of fact, while we are on the subject and you are so obviously knowledgeable and stuff, can you tell me how to file to get my social security and medicare taxes back?
Stop talking down to people, makes you seem like an idiot!
I can tell you think you are the only smart one here.
Having your own business and all, I can tell you are savvy and the only one that has ever done such a thing.
Maybe Chris can come to you for advice how to file and get his social security and medicare taxes back since that is the biggest share of taxes he makes on his putrid $40,000 income?
Matter of fact, while we are on the subject and you are so obviously knowledgeable and stuff, can you tell me how to file to get my social security and medicare taxes back?
Stop talking down to people, makes you seem like an idiot!
Like I said FICA is gone forever.....so, I do not pay in.
The idea of the FairTax is an idea that is nothing new. It is an idea to replace ALL taxes the US federal government collects including Social Security and Medicare with a national sales tax. I am against it and want to know off there are actually people who support it and why they do if that is the case.
If the Fair Tax was constructed as a VAT, I suppose it might work and it might be a good thing. However, as currently constructed, as a sales tax, I don't think it is going to work. Just too many people would dodge it.
Like I said FICA is gone forever.....so, I do not pay in.
I can tell you are dying for me to ask you how you legally do that so I'll ask.
Clergy?
Government employee parasite who puts money into a public employees fund?
Savvy day trader? You make all your money the smart way?
Back in the 80's and 90's that was grossing between $2 and $4 million, equate to between $4 and $8 million today adjusted for inflation, and I think I was pretty savvy. Not the brightest candle in the box mind you but not the dimmest either.
Somehow I could never escape FICA or Medicare taxes and I would usually hit the limit late summer so for many years I paid in the maximum amount. Could never escape those pesky FICA taxes and being self employed I paid the self employment portion as well so it wasn't cheap.
So how is it you get around paying legally?
Quote:
Originally Posted by lilyflower3191981
If the Fair Tax was constructed as a VAT, I suppose it might work and it might be a good thing. However, as currently constructed, as a sales tax, I don't think it is going to work. Just too many people would dodge it.
No VAT, never!
People dodge it, as they are not dodging it today?
The Internal Revenue Service (IRS) has identified small business and sole ... Americans owe in federal taxes and what the federal government receives. ... Thus, 18 to 19 percent of total reportable income is not properly reported to the IRS.
I can tell you are dying for me to ask you how you legally do that so I'll ask.
Clergy?
Government employee parasite who puts money into a public employees fund?
Savvy day trader? You make all your money the smart way?
Back in the 80's and 90's that was grossing between $2 and $4 million, equate to between $4 and $8 million today adjusted for inflation, and I think I was pretty savvy. Not the brightest candle in the box mind you but not the dimmest either.
Somehow I could never escape FICA or Medicare taxes and I would usually hit the limit late summer so for many years I paid in the maximum amount. Could never escape those pesky FICA taxes and being self employed I paid the self employment portion as well so it wasn't cheap.
So how is it you get around paying legally?
I claim no profit.
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