Thread: If Trump wants to run the country like a business, he should expand the IRS

I almost understand the prebate , from the government's viewpoint- but it's danger is that there is no way to rid ourselves of the bureaucracy if we are going to send every household a check each month and process requests - if they are required. There would be no savings of the elimination of the IRS employees - simply another name.

There is no need for the rebate, exempt food and medicene, other things, - and tax away.

By having to request and receive a check each month from the government, we are more tied to the government than we are now. People will, we know human nature, become dependent on that check. No, I don't see it being brilliant - except for the government that wants to keep the strings - with fishhooks - attached. For the people, it's anything but freedom.

Let's get away from the touchy-feely thinking and get down to the cold hard facts. Everyone should pay for the upkeep of this government - everyone. People do get in circumstances that it is impossible, but that should be temporary or perhaps because of some catastrophe. People on welfare, SS, etc., pay sales tax now.

I don't think houses or autos could be taxed. I'm not adverse to used products being taxed. They are in Texas already.

So, yes, tax away. I don't see why it would 132 pages of law - other than perhaps stating why might be exempt.

So the law should state the amount of tax, the date to be remitted to the federal government, and any exemptions.
Short and sweet - with the execption of the exemptions, a half page should do it.

I also don't see why it should take 20%.

Let me in there, I can cut that waaaaaaaaaaay down.

It really doesn't take much bureaucracy the way they have it set up. Consider this, every month under the present system the SSA processes payroll taxes. So they have a bureaucracy already set up to receive the monthly reports and money from all the employers and self-employed in America. The FairTax terminates the payroll tax, employers still send in their monthly reports but no money is sent. So the group that normally processes all those payments no longer has to do that, so that group will handle the Rebates. There are fewer Rebates than there are payroll reports because the Rebates are per HOUSEHOLD, not per worker, so it will actually be less work. It's also a set amount not varying amounts, so much simpler, entered once a year, but paid out monthly, computers do all the work and the direct deposits or smart cards are used predominantly, plus checks if you want, but there will be very few actual checks sent.

That's why the FairTax legislation requires that the Rebates all be handled by Social Security Administration directly, not the Treasury Department. Also, the FairTax legislation has a tax rate of 23%. 8.09% of that is earmarked for Social Security Administration to fund SSA and Medicare to replace the payroll taxes. The balance of 14.91% is earmarked for General Revenue to fund the government. The Rebates will be deposited into the SSA for payment from the 14.91%. The 8.09% can't be reduced, we need all of that to robustly fund SS and Medicare. So if we do away with the Rebate, that 3% (just my guess of what the Rebates would amount to in terms of % savings if we eliminate it, could be 2.80 or 3.12 or some weird number like that, but just for easy conversation I'm using 3%) would come off of the General Revenue portion so the 14.91% would be reduced to 11.91% which would be a very low federal tax rate considering all that it pays for.

Plus 20% is a lot easier for people to figure in their heads which could be helpful.

I'm good with it either way, with a Rebate or without. I wouldn't sign up for it, but I think a lot of people would. They're as entitled to it as they are the personal and dependent deductions they enjoy now on their income tax, it's there for the same purpose, to exempt essentials up to a certain amount from federal tax, and I've never heard anyone complain about that.

It's a great plan, it really is, with the Rebate or without. What a relief it would be for the American People, our employers and businesses, our industry and workers, our savers and investors, it's just a beautiful very well-thought out plan. It's truly the best economic development legislation that's ever been presented to the American People. And we should grab it and make Congress pass it this year.

http://www.fairtaxfraud.com/fallout.asp