Difference between revisions of "FairTax"
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[[category:US/law/proposed]] | [[category:US/law/proposed]] | ||
==About== | ==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 | + | [[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 basic personal needs (one amount per adult and a much smaller amount per child). |
| − | === | + | ===Family=== |
| − | + | Although the legislation goes into considerable detail to [[/family|define "family"]], this appears to be largely irrelevant since the rebate for a married couple is exactly twice the rebate for a single adult. | |
| − | + | ===Rebate=== | |
The rebate is defined in Chapter 3 of the bill as: | The rebate is defined in Chapter 3 of the bill as: | ||
: '''[the flat tax rate (23% for 2009)]''' x '''[the monthly poverty level]''' | : '''[the flat tax rate (23% for 2009)]''' x '''[the monthly poverty level]''' | ||
| Line 12: | Line 12: | ||
: '''(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.) | ||
| + | |||
| + | In effect, this seems to translate into a fixed amount per adult (regardless of marital status) and another (much smaller) fixed amount per child. | ||
==Supporters== | ==Supporters== | ||
Supporters of the FairTax include: | Supporters of the FairTax include: | ||
* [[Bob Hall]] - independent [[US/president/election/2012|2012 presidential candidate]] | * [[Bob Hall]] - independent [[US/president/election/2012|2012 presidential candidate]] | ||
* [[Mike Huckabee]] - [[anti-gay]] [[fundie]] and [[2008 US presidential race|2008 presidential candidate]] | * [[Mike Huckabee]] - [[anti-gay]] [[fundie]] and [[2008 US presidential race|2008 presidential candidate]] | ||
| + | |||
| + | See {{sourcewatch|Fair Tax Act of 2007}} for a much more complete list. Supporters seem to be overwhelmingly [[US Republican Party|Republican]]. | ||
==Links== | ==Links== | ||
===Reference=== | ===Reference=== | ||
| Line 21: | Line 25: | ||
* {{wikipedia}}: in-depth article includes explanation of how rebate is calculated | * {{wikipedia}}: in-depth article includes explanation of how rebate is calculated | ||
* {{conservapedia|Fair Tax}} | * {{conservapedia|Fair Tax}} | ||
| − | * <s>{{dkosopedia}}</s> no article as of 2008-01-06 | + | * <s>{{dkosopedia}}</s> no article as of 2008-01-06; confirmed 2012-09-01 |
* {{sourcewatch|Fair Tax Act of 2007}} | * {{sourcewatch|Fair Tax Act of 2007}} | ||
* [http://www.fairtax.org/ FairTax.org]: promotional web site | * [http://www.fairtax.org/ FairTax.org]: promotional web site | ||
| + | ===Notes=== | ||
| + | * '''2012-09-01''' Some [https://plus.google.com/u/0/117462639360701058497/posts/b3hfz1qRYE7 discussion on Google+] | ||
Revision as of 16:31, 1 September 2012
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 basic personal needs (one amount per adult and a much smaller amount per child).
Family
Although the legislation goes into considerable detail to define "family", this appears to be largely irrelevant since the rebate for a married couple is exactly twice the rebate for a single adult.
Rebate
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.)
In effect, this seems to translate into a fixed amount per adult (regardless of marital status) and another (much smaller) fixed amount per child.
Supporters
Supporters of the FairTax include:
- Bob Hall - independent 2012 presidential candidate
- Mike Huckabee - anti-gay fundie and 2008 presidential candidate
See SourceWatch for a much more complete list. Supporters seem to be overwhelmingly Republican.
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; confirmed 2012-09-01- SourceWatch
- FairTax.org: promotional web site
Notes
- 2012-09-01 Some discussion on Google+