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Cross-Posted Shamelessly [19 Mar 2009|06:01pm]

[ mood | determined ]

A bit redundant for this group, but I've been putting it everywhere else... :)

Please join me in signing this petition for the President and his administration to examine, consider, and support the FairTax. If you don't know about the FairTax, peruse the site and educate yourself. Get the books. Learn, and make your voice heard.

FairTax Petition

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Can I deduct an Earned Income Credit on my tax return? [03 Feb 2009|11:35am]


Question: Can I deduct an Earned Income Credit on my tax return?

Answer: The earned income credit is a special credit which lower income workers can deduct on their tax return. The earned income credit can be claimed on a tax return not only by workers with qualifying children, but also by workers with no children under certain circumstances. The earned income credit reduces the amount of tax you owe (if any) on your tax return and is intended to offset some of the increases in living expenses and social security tax. The earned income credit is not a tax deduction; it is subtracted directly from the amount of tax you owe on your tax return, so you end up paying less tax and you may get some money back from the government. Even if you had no tax withheld or do not owe any tax to the IRS on your tax return, you might still get some money back because the earned income credit is a "refundable credit".

The earned income credit can be claimed on Form 1040EZ, however, several requirements must be met. If you do not meet all of them, you must use Form 1040A or Form 1040. For additional information on the tax requirements, refer to Tax Topic 352, Which Form - 1040, 1040A or 1040EZ.

For more free Information on how to resolve IRS Tax Problems back taxes, please visit www.TheTaxAttorney.org

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[28 May 2008|12:57pm]

Has anyone here signed up to be a Fairtax 1040 Member yet? I did the other day.
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Arnold Kling on "Huckabee's" Tax Plan [14 Jan 2008|09:34pm]

We know it can be anyone's plan, of course. It just happens that only Huckabee and Gravel ran with it.
In most of the article, Kling just tells us about his own alternative "Semi-Fair Tax" that doesn't completely remove the income tax. Kling cites a study by William Gale at Brookings that insists the artithmetic within the fair tax proposal is wrong. I haven't looked into that at this time (it's a big PDF file), but Kling claims it means a 44% consumption tax would actually be necessary to generate as much revenue as the income tax today. What's interesting is that it appears Kling completely missed the argument about embedded taxes within the Fair Tax proposal. Even if one thinks the pro-fair tax argument about embedded taxes is bogus, one should at least bother to address it when reviewing the tax plan.
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I Don't Think Even The Sympathetic Get It [12 Jan 2008|01:20am]

Steven E. Landsburg writes in Slate that "Huckabee's Tax Plan Is Brilliant", but unless he's deviated from the original Fair Tax a little, the plan described in the article isn't what Huckabee advocates. The sales tax percentage given is 20% in the article, not the 23%, and the prebate, as usual, isn't mentioned. I get the impression that I'm reading an article not written by an adult, but an energetic child trying to think big picture while missing several valuable details.

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Overselling The Fair Tax [23 Sep 2007|12:48am]

There's a lot of good in the fair tax, but some people seem to embellish it with Chuck Norris type powers.

I hope this guy doesn't actually believe the Fair Tax will bring forth a Millennial Reign  of Christ and Disney outcomes to all problems.

Here are a few selections from his list:

The study of Latin and Greek reappears in American as a part of a normal private school K-12 education. A restoration of Puritan values sweeps America as communities began devote their lives to promoting Crown Rights of King Jesus.
Elected officials now have twice as much time to address the spending side of government because the Fairtax, which has become the Third Rail of politics, can not be touched. The Sixth Amendment becomes obsolete and no longer talked about.

The United Nations is kicked out of the United States. The League of Fairtax Nations takes over the building.  Nations must have a Fairtax and an American Bill of rights to join the new League of Fairtax Nations.


Social Security is on stable footing for the first time in years! It eventually becomes an obsolete government program no longer wanted or needed.


Medicare is paying its own way and is no longer in danger of default! It eventually becomes an obsolete government program no longer wanted or needed.


The average person who starts work at 15 years of age can retire by 35 years of age, with or without a college degree. Most college graduates go back to school by age 30 and have two or three different professional careers in their lifetime.

I doubt anyone seriously expects the Fair Tax to change the world that much, but I still find this sort of enthusiasm a little ominous, as it reminds me of Leo Tolstoy's rallying for the Georgist Single Tax at the beginning of the Russian Revolution. He got swept up into a similar tax reform movement, and he too expected it to fix all the world's problems.

Come to think of it, our time is a lot like Tolstoy's time, as so many of the things he endorsed seem popular again. His attitudes toward copyright were a lot like what the open source community advocates today, and his ideas toward farming and diet sound a lot like green and organic concepts today. Perhaps the Cold War squeezed out Tolstoy's ideas for a few decades, and we're seeing a revival now.

I'm optimistic, and hope to see many good things happen in my lifetime. I hope the income tax will die, I hope the world will painlessly switch from crude oil to natural gas quickly before moving on to something more perfect like fusion, I hope Americans will choose HSAs over a universal government health care system, and I hope every little town gets a free daily newspaper of high quality. But my eyes are wide open, and I don't see a time where I'll get to
be in peace without a legion of problems.
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Reactions To Bartlett [01 Sep 2007|10:02pm]

James Joyner At Outside The Beltway has a long and thoughtful yet highly snarky reaction to Bartlett's Wall Street Journal column.

Despite my strong intuitive sense that a consumption based tax is more fair and efficient than one based on income, I’m prepared to admit that I don’t understand the economics and logistics of implementation enough to truly assess the costs and benefits. It may well be, for example, that a too-high sales tax would encourage a huge black market. And it may well be that state income tax filing requirements, the need to rebate money or otherwise exempt the very poor, and other hurdles will offset many of the supposed efficiency advantages.
Bartlet’s argument, however, is simply nonsensical.
His subheadline asks the rhetorical question, “Does adding 30% to the price of every house sold sound like a good idea to you?” He then goes on to argue that the specific FairTax proposal advocated by Mike Huckabee would require a 30 percent surcharge on everything to be revenue neutral.
That sounds horrible, right?
But . . . um . . . it’s revenue neutral. So, we’re already paying the equivalent of a 30 percent surcharge on everything? The only difference would be that, rather than having the amount of we pay tax hidden by collecting in multiple ways and then having an arcane filing system nobody without a CPA actually understands is that it would be transparent. Why’s that a bad thing?

Joyner doesn't understand the Fair Tax plan fully, but understands enough to see Bartlett isn't being fully honest, at least. The comment thread has some people that know their stuff, though.

Neal Boortz of course has a sharp rebuttal to the column:

In another astonishing falsehood Bartlett says that the cost of providing the prebate to every household in America is not factored into the FairTax rate. He says it would cost at least $600 billion the first year. Again, Bartlett is just flat wrong. The cost of the rebate most certainly was included in the 23 percent rate. Congressman Linder tells me that if the rebate had not been included the FairTax rate could have been lowered to 18 percent. The fact is that the rebate is projected to cost 5 percent, and that 5 percent is most certainly included in the rate.

Bartlett makes another huge mistake(?) regarding the prebate. He says that the FairTax sends monthly checks to every household based on income. Then he speaks of the "complexity and intrusiveness of tracking every American's monthly income .." Wrong ... completely and absolutely wrong. As anyone who has read the book knows, the prebate is not based on income, it's based on family size. There is no need to track anyone's monthly income. The only thing the government needs is a valid Social Security number and the number of people in the household.

Then, of course, Bartlett gets into the question of whether or not you can fund the federal government at present levels with a 23 percent inclusive sales tax rate. He cites numerous sources that say the tax rate would have to be much higher than 23 percent.

Know this ... in every case where some individual or organization has come forward to say that the tax rate would have to be higher than 23 percent, they have first changed the terms of the FairTax. That is, they have created exemptions. For instance, they assume that congress would never agree to tax food and medicines, therefore the tax would have to be XX percent, or that congress wouldn't tax transportation and housing, therefore the tax would have to be XX percent. Again .. the fact that the taxes are already there in the form of embedded taxes – embedded taxes to be replaced by the fair tax – is ignore.

All publicity is good publicity, as long as people are willing to seek out the rebuttals.
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Fair Tax Playlist [31 Aug 2007|12:34am]

This playlist includes 22 videos related to the Fair Tax, insuring that I won't have to make another video post in this community. The Sean Hannity video is a waste, because even though he's speaking in front of a Fair Tax rally, he only talks about how great Reagan was for beating the Soviets, and some other stuff completely off topic.
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BRUCE BARTLETT Pans The Fair Tax [31 Aug 2007|12:15am]

Gosh, he just said a month ago that he was retiring from writing columns, and right after giving up with his syndicated gig, he writes another one for the Wall Street Journal. Here's the link.


In reality, the FairTax rate is not 23%. Messrs. Linder and Chambliss get this figure by calculating the tax as if it were already incorporated into the price of goods and services. (This is known as the tax-inclusive rate.) Calculating it the conventional way that every other (This is called the tax-exclusive rate.)

The distinction is confusing, but think of it this way. If a product costs $1 at retail, the FairTax adds 30%, for a total of $1.30. Since the 30-cent tax is 23% of $1.30, FairTax supporters say the rate is 23% rather than 30%.

This is only the beginning of the deceptions in the FairTax. Under the Linder-Chambliss bill, the federal government would have to pay taxes to itself on all of its purchases of goods and services. Thus if the Defense Department buys a tank that now costs $1 million, the manufacturer would have to add the FairTax and send it to the Treasury Department. The tank would then cost the federal government $300,000 more than it does today, but its tax collection will also be $300,000 higher.

I first noticed Bartlett taking aim at the Fair Tax proposal and other value-added tax schemes when he was subbing for Andrew Sullivan at the Daily Dish, and I meant to write that up here. Something must have come up, I can't remember. I notice WSJ has added the Sphere feature, which is kind of like a Technorati widget, I guess. You can check that to see who is talking about the article online, and don't forget to see what people are saying in their direct responses.

 Dave Weigel at Reason took the chance to question Huckabee's sincerity in believing in the Fair Tax.

"Also, a funny thing about the Fair Taxers propelling Mike Huckabee to (de facto) victory in Iowa... Huckabee doesn't really support the Fair Tax. He says he does, but when you ask him about taxes he starts rapping about "the four Fs" - flatter, fairer, finite, and family-friendly." I don't really see the contradiction on it's face. 
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Duncan Hunter addresses the Fair Tax Rally [29 Jun 2007|09:22pm]

I didn't know Congressman Hunter, who is running for president as a Republican, was a fan of the fair tax. At a rally held in the middle of May in South Carolina, the San Diego (right?) congressman explained why he liked it.

I’ll try to summarize the views he holds in the video. He agrees with all the main justifications for switching to the Fair Tax, getting rid of all the overhead involved in filing an income tax, and then he speaks of his favorite reason. He has some hawkish reasons. “I’m a defense guy.” He tells a story about looking for defense contractors to up-armor vehicles getting beat up, and he could only find one company in America. All the others are leaving. Hunter says the trade agreement GATT is responsible, says under the agreement, American-made goods are taxed twice (is that true?). “Well let me tell you what; under the Fair Tax, we eliminate that income tax and that IRS.” (Crowd cheers) Industry returns to America; the Arsenal of Democracy is back. The industrial base that kicked ass in the twentieth century returns to kick more ass. In WWII, Ford kicked ass making bombers around the clock. The Fair Tax brings it all back. (Crowd loves it) Hunter thinks everyone will unite around bringing back heavy industry and the high-paying jobs of old. Quotes a marine coming home after WWII, then quotes another marine coming home today. The Fair Tax will help raise a new free generation of Americans. (Hunter leaves the podium)

Hopefully I've got the Youtube video under the cut.

[Error: close lj-embed tag without open tag]
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Huckabee & Gravel Support The Fair Tax [06 Jun 2007|03:49am]

A couple presidential candidates are using their Youtube soapboxes to promote the Fair Tax. It surprised me a bit that one is a Democrat. I put under the cut four videos of these two candidates advocating the Fair Tax. Huckabee's very polished in his, while Gravel takes a more rough approach that befits his name.

Four VideosCollapse )

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A Fair Tax Poll [25 Mar 2007|01:56pm]
I'm new to this community, but not new to the idea of the Fair Tax. I have done everything I can think of to kick start this movement, and I'm currently frustrated by its stagnation. So I'm seeking your opinion:

Why do you think more people aren't throwing themselves 100% behind the Fair Tax?

They don't have any idea it exists
They just don't care
They have other things that they think are more important
Because it was proposed by a conservative
They have an incomplete understanding or a misunderstanding of the proposal
Because even though they think it's a good idea, they don't believe it would ever pass.
They don't believe it will work logistically
Because they don't think it's good for "the little man"
They don't want Government to lose the power that taxation currently gives it
They believe it will ultimately end up meaning higher taxes
Other - please help me understand.

Thanks for playing. Maybe if we can figure out why people aren't more actively supporting this idea then we can do something about it.
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Tax Survey for my Comp II class [23 Sep 2006|01:09pm]

[ mood | chipper ]

Survey away!Collapse )

Please please, take the time to fill this out! I'd really like a good survey size.


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Newbie with a question [08 Sep 2006|05:55pm]

Hey, I hate to just drop in and ask for help but, well, I really do need some advice. So here goes:

After a year of being unemployed, I finally found a job. The pay is great, about $ 30,720 a year. The problem is this: I'll be working as an independent contractor. I spoke with a friend who informed me that, on that salary, I'd be paying about $ 15,000 a year in taxes (federal, state and self-employment). Is this true???? With all of my debts that have piled up, plus the fact that I'd like to save up for a home some day, I can't possibly AFFORD to take this job if I'll be giving that much money away. I just can't afford it. Any advice would bemuch appreciated!
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Orlando FairTax rally! [23 Jun 2006|10:53am]

[ mood | awake ]

I'm sure most of you already knew about this but I'll throw up the time/date anyway:

10 am on Saturday, July 29th in front of the Orlando City Hall in downtown Orlando.

Hope to see you all there (well.. not all of you but the ones that might happen to live in central Florida to begin with)


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Tom DeLay Endorses FairTax... [05 Apr 2006|09:49pm]

Tom DeLay made a guest appearance on Rush Limbaugh's program today and endorsed the FairTax!


"CONGRESSMAN DeLAY: Well, it may appear that way, Rush, but I think I'm winning. First of all, they had me tied down in a reelection campaign to where I had to focus completely on getting reelected. I think I could have won the seat, but it struck me that I can fight in another arena and still hold the seat for the Republicans. Now I feel totally liberated. I'm going to be out there talking about the conservative agenda. I'm going to be working very hard to get rid of the federal tax code and replace it with the FairTax. I want to continue my effort to hold the judiciary accountable. There's just a lot of great things I could be speaking out about, and I could not do that. I'm going to work very hard to elect Republicans to carry the conservative cause."

Good to see the bandwagon is still rolling, and that there's hope for tax reform in the name of the FairTax.

x-posted to the_talkmaster
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Tenancy as a service? [30 Jan 2006|11:52am]

Statement: FairTax applies to all goods and services at the "retail level".

Question: Do my lease agreement and subsequent rent payment checks to my landlord constitute a "retail level" service? Would it matter that my apartment has housed previous tenants, or is the "service" of a landlord renting housing to me the point?

I can envision a rather large loophole here, and wonder what you folks think.
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The Family Consumption Allowance. [27 Jan 2006|12:10pm]

Statement: The Family Consumption Allowance (the prebate) exists to make the tax progressive (read: politically viable). Without the FCA, Linder & Boortz estimated the percentage required to be about 17%.

Question: Could the FairTax be more politically viable if the prebate were removed and the nominal tax rate reduced to 17%?

Rationale: The poor stand to benefit the most from the FairTax, irregardless of whether the prebate is included or not. With the prebate, they begin to receive all of their paychecks. They don't pay tax on used items. They pay the 23% tax on items priced at 78% (on average, prices are inflated 22% by hidden taxes) of their current prices. They come out even (well, within pennies) on the retail side, and they don't pay tax on anything used, PLUS they get to keep all of their income, AND they get $183/person/month to cover taxes up to the poverty line.

Without the prebate, all the same advantages apply except the prebate. An additional advantage gained is a reduction to 17% sales tax, causing them to come out ahead with the FairTax than in the current system. Additional advantages for everyone else include the 17% rate as opposed to the 23% rate, which would make it much more politically viable to the rest of the population.

What say you?
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But I just... [26 Jan 2006|07:28am]

What common objections do you get when talking with your friends about the FairTax?

It would be helpful for us to exchange these ideas, as others of us might have better ways to explain away the concerns.
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HR 25, Section 905 (a) [21 Jan 2006|07:54am]

I've got most of my questions ready. We'll take them one at a time:

Section 905 (a) reads:
SEC. 905. (a) IN GENERAL- All persons, in whatever capacity acting (including lessees or mortgagors or real or personal property, fiduciaries, employers, and all officers and employees of the United States) having control, receipt, custody, disposal, or payment of any income to the extent such income constitutes gross income from sources within the United States of any nonresident alien individual, foreign partnership, or foreign corporation shall deduct and withhold from that income a tax equal to 23 percent thereof. [bold mine]
I don't understand why a bill claiming to be doing away with the income tax would have text explicitly authorizing an income tax. It reads like it's setting up an income tax for nonresident aliens. One of the stated benefits of the FTA is that it taxes the previously untaxable underground labor market through the NRST. Why is the bill constructing an income tax structure for aliens?
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