Kasz216 said: Yes, but not as many people will not want to pay that kind of price for someone else. I cede that some people will, but there are also people under the current system who do the same. 2) I still don't see how this prevents them from taking this out... at first for an exception for say... war victims, or single mothers etc. There are a few exemptions already. Non-profit organizations (including churches) can be exempt, provided they apply for it and are accepted. If other groups get exempt later, they would have to apply as well and meet criteria. 3) So goods going outside of the country don't have the fair tax applied to them. Sounds like another good way to avoid the fair tax. Make the products here, then sell them in a corporation created in a country with a favorable rate and then ship them back when people buy them online, now at the lesser agreed opon rate. That is a lot of work for a simple tax cut, and that would be a somewhat traceable attempt to avoid the tax and therefore fraud. 4) This doesn't prevent people from misstating it's value. True, and people do this now. Customs checks things already, how much do they miss on excise taxes and other things currently? I have no figures about this. 5) I sure hope they fix the Social Security Administration then... as they already do a really inadequete job with what they have now. It took us forever to get my grandma's SS right. I agree that the SSA is a huge agency and largely inefficient. However I also believe that the electronic dispersal would be easy to impliment and manage. 6) So the Fair tax is also a Gift Tax if you make what is being given. Just as a note, the FairTax also eliminates the Gift tax. But I think you were referring to what the FairTax would be like when applied to bartering. Even with that explanation it is incorrect as the goods traded are not going one way. I do not believe that the government should be involved in a level of business that makes [edit: removed extra word] person to person trade or barter taxable. If they did then every time friends trade games we would need to pay the tax. I simply do not believe that is 1)possible to trace, or 2)Fair in any way. If the FairTax becomes that burdensome, even I will move to reduce the government involvment in my life at that point. 6a) So does that mean lumber isn't part of the fair tax. IE lumber i would buy and other construction matierals, like say glue etc. What? If you barter, buy, or otherwise purchase lumber and you are not an authorized business (one that has the business to business exemption) you will/should pay the FairTax. 6b) If these items are being taxed isn't that penalizing really small buisnesses AKA people who buy things from places like Office Max and sell there crafts online. Small businesses can claim a tax credit for such items with the STA of their state. They will be refunded for the tax applied to their purchase. [EDIT: Also people who make these "crafts" are either doing this for one of two reasons, for supplimenting their income, or as a hobby. If the craft is to suppliment their income I would submit that they will have more disposable income with their wages and the Prebate. If the crafts are a hobby then the person will not be eligible for tax exemption. The FairTax defines a hobby as not a for-profit venture. In order to receive the business to business tax exemption, the received "gross payments for the sale of taxable property or services that exceed the sum of-- (1) taxable property and services purchased; (2) wages and salary paid; (3) taxes (of any type) paid," (Section 701). In other words if you spent a combined total of $10,000 on the "hobby of crafting," including wages, taxes, and goods purchased to make the crafts, you would need to get paid $10,000 or more. If you met that requirement, you can get the Business to Business exemption. |
I am going to guess that you did not actually read the bill yet.... That's ok, because that is why I am here.
[EDIT: to everyone visiting this thread who are people who are new to the FairTax, or have limited knowledge, please ask questions. I will answer them inbetween answering the rest of the posts]
