Difference between revisions of "FairTax"
(New page: ==Overview== category:US.legislation.proposedFairTax is a bill currently making its way through Congress. It would eliminate the [[Internal Revenue Service|IR...) |
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| − | [[category:US | + | ==About== |
| − | + | [[FairTax]] is a bill currently making its way through [[110th US congress|Congress]]. It would eliminate the [[Internal Revenue Service|IRS]] completely, and replace the [[US federal income tax]] with a flat sales tax offset by monthly refunds based on family size. | |
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===Rebate / Family=== | ===Rebate / Family=== | ||
"Family" is defined as an individual, the individual's legal spouse, any offspring, and any direct ancestors. Although this leaves out unmarried and non-legally-married couples (e.g. [[gay marriage|gay couples]] in most states), it's not clear how this affects the actual refund, as each taxpaying individual would still be receiving a rebate, and together those rebates might add up to the same as the combined rebate of a "family". | "Family" is defined as an individual, the individual's legal spouse, any offspring, and any direct ancestors. Although this leaves out unmarried and non-legally-married couples (e.g. [[gay marriage|gay couples]] in most states), it's not clear how this affects the actual refund, as each taxpaying individual would still be receiving a rebate, and together those rebates might add up to the same as the combined rebate of a "family". | ||
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: '''(2)''' in case of families that include a married couple, the `annual [[US marriage penalty|marriage penalty]] elimination amount'. | : '''(2)''' in case of families that include a married couple, the `annual [[US marriage penalty|marriage penalty]] elimination amount'. | ||
The "marriage penalty elimination amount" presumably being a kluge put in place to offset the notorious "[[US marriage penalty|marriage penalty]]", i.e. the increase in income tax a married couple pays if they file jointly versus if they file separately. (It's not clear why these amounts are different.) | The "marriage penalty elimination amount" presumably being a kluge put in place to offset the notorious "[[US marriage penalty|marriage penalty]]", i.e. the increase in income tax a married couple pays if they file jointly versus if they file separately. (It's not clear why these amounts are different.) | ||
| + | ==Supporters== | ||
| + | Supporters of the FairTax include: | ||
| + | * [[Bob Hall]] - independent [[US/president/election/2012|2012 presidential candidate]] | ||
| + | * [[Mike Huckabee]] - [[anti-gay]] [[fundie]] and [[2008 US presidential race|2008 presidential candidate]] | ||
==Links== | ==Links== | ||
===Reference=== | ===Reference=== | ||
Revision as of 21:01, 17 September 2011
About
FairTax is a bill currently making its way through Congress. It would eliminate the IRS completely, and replace the US federal income tax with a flat sales tax offset by monthly refunds based on family size.
Rebate / Family
"Family" is defined as an individual, the individual's legal spouse, any offspring, and any direct ancestors. Although this leaves out unmarried and non-legally-married couples (e.g. gay couples in most states), it's not clear how this affects the actual refund, as each taxpaying individual would still be receiving a rebate, and together those rebates might add up to the same as the combined rebate of a "family".
The rebate is defined in Chapter 3 of the bill as:
- [the flat tax rate (23% for 2009)] x [the monthly poverty level]
The monthly poverty level is defined in Section 303 as:
- (1) the annual level determined by the Department of Health and Human Services poverty guidelines required by sections 652 and 673(2) of the Omnibus Reconciliation Act of 1981 for a particular family size, and
- (2) in case of families that include a married couple, the `annual marriage penalty elimination amount'.
The "marriage penalty elimination amount" presumably being a kluge put in place to offset the notorious "marriage penalty", i.e. the increase in income tax a married couple pays if they file jointly versus if they file separately. (It's not clear why these amounts are different.)
Supporters
Supporters of the FairTax include:
- Bob Hall - independent 2012 presidential candidate
- Mike Huckabee - anti-gay fundie and 2008 presidential candidate
Links
Reference
- HR25: official text of House bill
- Wikipedia: in-depth article includes explanation of how rebate is calculated
- Conservapedia
dKosopediano article as of 2008-01-06- SourceWatch
- FairTax.org: promotional web site
