1. After 20+ years it's time to pass the torch. If you are interested in acquiring this forum please contact support@cv-performance.com for details. Any spam will be reported and blocked.
  2. Welcome to Bike Talk, a forum for all bikers and motorcycle enthusiasts. If you are new to Bike Talk, be sure to register for free and join the conversation.

    There's always someone around willing to help out with questions or give a friendly wave back. All Harley and metric riders are welcome.
Bike Talk Motorcycle Forum is For Sale Welcome to Bike Talk

Fair Tax Introduced in Congress

Discussion in 'Pull up a chair and sit for a spell' started by hotroadking, Jan 6, 2011.

  1. hotroadking

    hotroadking Super Moderator Staff Member

    Joined:
    Jun 16, 2004
    Messages:
    13,682
    Likes Received:
    584
    Location:
    Mouseville USA
    OK off topic but very Important!


    A great day folks, Congressman Woodall introduced the Fair Tax to congress with 47 co-signers including some Democrats.. A bi-partisan bill...

    Click Here to send a letter to your representative

    yes you have to put in your address, but that is so the letter is properly
    directed to your representative. Otherwise go to your representatives site
    and email them, or write them (even better snail mail floods the office and is visible daily)

    If you don't understand it go to Americans For Fair Taxation: Americans For Fair Taxation


    If you want to get rid of the IRS, federal withholding, payroll taxes
    and have larger paychecks and only pay on what you spend then this
    is a red letter day in America and we need to step up
    and support the sponsors and this bill

    It's time to change the way Washington works, changing the
    way they can tax to the Fair Tax means they need to think
    twice about anything they do that can negatively effect
    income and GDP growth in this country...
    hotroadking, Jan 6, 2011
    #1
  3. JohnnyBiker

    JohnnyBiker Well-Known Member

    Joined:
    Mar 25, 2010
    Messages:
    9,568
    Likes Received:
    205
    Location:
    Minnesota
    I think that this is a good start, but from the little reading that I did, there are a whole butt load of questions and concerns that I have considering my wife is self employed.

    Food for thought. Ok, when it described the difference between tax inclusive and tax exclusive on the site, I basically understand it as (as a whole) that, instead of the government taking our money, producers of goods and services now have to add a min. of 20% to their price so they can pay the government the taxes owed. My understanding is that this fair tax plan basically disallows the government to with hold taxes, but still, it is kind of a shadow game because you are still paying taxes, yes at a discounted rate because taxes are what about 33%? so now the government has 13% fewer dollars going into the account, which I have no problem, but I am curious how they are then going to pay for certain things, like the debt?

    I think that this could be worked out but we need to keep our wits about us and say yes when the time is right, not just because it is different. LETS GET IT RIGHT THE FIRT TIME!!:D
    JohnnyBiker, Jan 6, 2011
    #2
  4. JohnnyBiker

    JohnnyBiker Well-Known Member

    Joined:
    Mar 25, 2010
    Messages:
    9,568
    Likes Received:
    205
    Location:
    Minnesota
    Now after reading further, I think that this is probably the single best feature of the Fair Tax proposed legislation, or explanation of a part of its benefits. Please read carefully. The following posted material has been taken from the Fair Tax Web site. It states::::


    How can the FairTax generate lower net tax rates for everyone and still pay for the same real government expenditures? The answer is two-fold. Firstly, the tax base is dramatically widened by including consumer spending from the underground economy (estimated at $1.5 trillion annually), and by including illegal immigrants, those who escape their fair share today through loopholes and gimmicks. In addition, 40 million foreign tourists a year will become American taxpayers as consumers here. Secondly, not everyone's average net tax burden falls. For households whose major economic resource is accumulated wealth, the FairTax will deliver a net tax hike compared to the current system.

    This information can be found at Americans For Fair Taxation:
    JohnnyBiker, Jan 6, 2011
    #3
  5. hotroadking

    hotroadking Super Moderator Staff Member

    Joined:
    Jun 16, 2004
    Messages:
    13,682
    Likes Received:
    584
    Location:
    Mouseville USA
    Johnny your wife will really benefit because she pays the
    self employment tax penalty, where if she worked for Z Corp
    they pay a percentage of her taxes for her, being self employed
    she pays what she normally would plus what an employer would have paid.

    She double wins

    Basically you pay a sales tax on items,
    and you pay that tax only if you buy it.

    So if you make say $50,000 a year now
    and your tax rate is 20% you pay $10,000 to the feds
    Take home is $40,000
    Say you put $4,000 into an IRA
    Net Pay $36,000


    But under Fair tax you make $50,000
    and you pay the feds Zero
    net Pay is $50,000
    You put $4,000 in IRA/Mutual Fund
    Net disposable income $46,000
    Spending for you a year remains at $15,000
    that could be taxed at 23% = $3450

    Big savings to you

    Plus - all illegal activity in cash, drug sales, etc now become taxable revenue
    sources because the cash passed through the drug dealer that buys
    a lambo for $120K, $500K house, etc is taxed....

    Best part is Washington will have to think
    about spending and bills that effect commerce
    as it will drive down revenue.

    Obama would never have put in the
    stop on drilling as it would have
    cost the feds millions under Fair Tax...
    hotroadking, Jan 6, 2011
    #4
  6. JohnnyBiker

    JohnnyBiker Well-Known Member

    Joined:
    Mar 25, 2010
    Messages:
    9,568
    Likes Received:
    205
    Location:
    Minnesota
    So the fair tax system is allowing me to take a deduction on IRA investing??? do you have the link that supports this???
    JohnnyBiker, Jan 6, 2011
    #5
  7. hotroadking

    hotroadking Super Moderator Staff Member

    Joined:
    Jun 16, 2004
    Messages:
    13,682
    Likes Received:
    584
    Location:
    Mouseville USA
    First example is under the tax code today, you put $4K in IRA to
    get a "dedection" or in a Roth to take out tax free

    Under Fair tax IRA's are no longer needed, there is no income
    tax to offset, mortgage deductions, car, IRA, etc all are eliminated

    In the above example you alone at $50K would have saved over $6,000
    in taxes...
    hotroadking, Jan 6, 2011
    #6
  8. cowboy

    cowboy Moderator Staff Member

    Joined:
    Apr 19, 2006
    Messages:
    9,926
    Likes Received:
    50
    Location:
    Alvin TX
    That's some good info thank's ,I'll check into it a little more & let the Boss lady read it , cause she has a job & I have retirement
    cowboy, Jan 6, 2011
    #7

Share This Page

XenPorta © Jason Axelrod from 8WAYRUN.COM