eagle1462010
Diamond Member
- May 17, 2013
- 69,412
- 34,460
What Is the Fair Tax Act Explained - Pros and Cons
How the Sales Tax Would Work
The proposed sales tax would amount to 23% of the total payment on just about all purchases. Sounds like you’d simply pay a 23% sales tax, right? Not quite. Basically, this works out to be a 30% sales tax rate, because you wouldn’t pay the tax at the register, like you do now.
For example, an item marked $100 would already include the sales tax within it – in this case, $23. This is called an inclusive tax. In other words, the cost of the item without the tax would be $77. But $23 paid on a $77 purchase is roughly 30%, the way we’re used to calculating it. While 30% is steep, you’d be working with a much larger paycheck, because no federal tax would have been withheld.
No dice............Not to mention how we are going to send out the MONTHLY PREBATE CHECKS...............For those in poverty..................
And it would still require the IRS to try to find those evading the taxes................
It would require the Treasury to send out Millions upon millions of checks............
I've been bitching about Cruz's plan................LOL...............It's a winner compared to this LAME IDEA.
How the Sales Tax Would Work
The proposed sales tax would amount to 23% of the total payment on just about all purchases. Sounds like you’d simply pay a 23% sales tax, right? Not quite. Basically, this works out to be a 30% sales tax rate, because you wouldn’t pay the tax at the register, like you do now.
For example, an item marked $100 would already include the sales tax within it – in this case, $23. This is called an inclusive tax. In other words, the cost of the item without the tax would be $77. But $23 paid on a $77 purchase is roughly 30%, the way we’re used to calculating it. While 30% is steep, you’d be working with a much larger paycheck, because no federal tax would have been withheld.
No dice............Not to mention how we are going to send out the MONTHLY PREBATE CHECKS...............For those in poverty..................
And it would still require the IRS to try to find those evading the taxes................
It would require the Treasury to send out Millions upon millions of checks............
I've been bitching about Cruz's plan................LOL...............It's a winner compared to this LAME IDEA.