Sunday, October 12, 2008

Letters to the Web Editor

  FAQFAQ     SearchSearch Forums        Log inLog in      RegisterRegister 


Search Forums:



Re: TAX MYOPIA -
Read May 7: 'Fair Tax' is a Bad Idea New Message »
Post new topic.     Reader Forums -> Letters to the Web Editor -> May 7: 'Fair Tax' is a Bad Idea
Author Message
Bill Pelland



Joined: 25 Feb 2008 07:34 am
Posts: 383
Posted: 13 May 2008 09:23 pm
Post Subject: Re: TAX MYOPIA - Read Article
Here is an excerpt from s1025, the bill before the US Senate that enacts the FAIR TAX.

[quote](12) TAXABLE EMPLOYER.—
(A) IN GENERAL.—The term ‘taxable employer’ includes—
(i)any household employing domestic servants, and any government except for government enterprises (as defined in section 704). [/quote]

Let me clarify my thoughts. s1025 passes collection duties to the State Sales Tax people for collection. They will have the authority under this bill to garnish wages, put liens on property, and assess penalties for non payment.

The Taxable Employer is responsible for the 23% inclusive tax unless the seller has a sales tax license. This means if you hire a handyman, gardener, maid, nanny, whatever, you are responsible for verifying their license or you are liable for the tax.

I have been trying to encourage you who support this FAIR TAX idea to read what the actual bill says. The bill spells it out; not the research and not the supporters website.

Neal Boortz, argues that 22 percent of the price of a consumer good is really a “hidden tax.” Get rid of corporate and social security taxes, Boortz argues, and consumer good prices would drop by 22 percent.


[quote]we cite 22% as the average amount of those embedded taxes. Does this 22% include the income and payroll taxes that are paid by employees? Yes, it does. So ... what does this mean to your paycheck after the FairTax becomes law?

When the FairTax is implemented, and when business and personal income and payroll taxes disappear, your employer is going to have to make a decision. He will either take some or the entire amount he had been withholding for federal income and payroll taxes and add it to your weekly check, or he will readjust your pay figures so that your entire paycheck will be equal to what you used to call "take home pay" before the FairTax. [/quote]

Neal Boortz and Congressman wrote the book on the Fair Tax. In the paper back version he corrected some points about the fair tax. Quote above is one of those points. The bold typeface I added.

Note that the employer is under no obligation to pass any of the savings for payroll taxes to you or for that matter what was being withheld for income tax.

Vote Obama
Vote Noriega

Bill Pelland
Murchison

Bill Pelland
Murchison Tx
Back to top
Author Replies
Post new topic.
MORE NEWS
MULTIMEDIA