Thread: FairTax and Trade

No, the FairTax doesn't pay for our necessities or a "family consumption allowance". It just pays for the tax on necessities determined by the "family consumption allowance" Good Gawd Man, what kind of mind can distort something as simple as a sales tax exclusion for necessities. No it doesn't "compound" at all. The FairTax is charged at the final point of sale, one time, at the end of the line.

For example, the annual consumption allowance for an adult is $11,770 a year. The annual rebate is $2,707 or 23% of $11,770. It's paid monthly at 1/12 of $2,707 in the amount of $226 a month to pay the tax. If you have a child it's another $81 a month for a total of $305 a month to pay the tax.

Of course the retailer and the state are paid a fee for the service of collecting the tax, it's 1/4 of 1% each or 1/2% of FairTaxes collected and is included in the FairTax rate. Better them than 100,000 federal government employees at the IRS terrorizing people over their income taxes. The FairTax is very consumer and business friendly. You shop, you buy, you pay, you go home, end of story. If you sign up for the rebate, your first $11,770 of spending per adult and $4,160 of spending per child is tax free. The rebate doesn't pay for the $11,770 or $4,160 annual consumption allowance, it just pays for the FairTax charged on those sums of spending.

FairTax Expense of $305 - FairTax Rebate of $305 = Zero. That's how they exclude the tax on necessities. Very efficient and cost effective.

I think I'm beginning to understand why you never got one of your inventions to market by yourself. YOU NEED HELP!!!