Is the Fair Tax Herman Cain’s Ace in the Hole?

[Vi-Jay 218]

Make $50K, spend $50K - effective federal tax rate: 23%

Make $1MM, spend $400K - effective federal tax rate: 9.2%

Make 300MM, spend $25MM - effective federal tax rate: 1.9%

Your math?

Very realistic and fair comparison.

Edited May 25, 2011 by Vi-Jay

[Mr. Big Dog 10,747]

Your math?

Very realistic and fair comparison.

Oh Lord. I see you slept through your math class.

[웃 910]

Oh Lord. I see you slept through your math class.

How did you come up with those numbers?

[Vi-Jay 218]

Let's play with Dog's #'s

A)Spend 50k @ 23% = $11,500

B)Spend 400k @ 23% = $92,500

C)Spend 25MM @ 23% = $5,750,000

Who is contributing the most to the country? A, B, or C?

Dog's percentage of expenditure to Income.

50k/50K = 100% spent

400k/1MM = 40% spent

25MM/300MM = 8.3% spent

Yep! Very fair and realistic comparison.

Edited May 25, 2011 by Vi-Jay

[웃 910]

I think his point is that a super rich guy (300MM per year) is not spending all his income so he's only paying "fair tax" on a very very small fraction but the rest is completely tax free.....Not sure though

[^_^ 5,021]

I think his point is that a super rich guy (300MM per year) is not spending all his income so he's only paying "fair tax" on a very very small fraction but the rest is completely tax free.....Not sure though

Even if that wasn't his point, it is still true. The less you make, you spend a larger % of your income to just survive.

[Mr. Big Dog 10,747]

Let's play with Dog's #'s

Alright, you demonstrate that you're entirely capable of totally missing the point. Not that I had any doubt that you would and could.

[Vi-Jay 218]

Even if that wasn't his point, it is still true. The less you make, you spend a larger % of your income to just survive.

Not according to the gov. www.census.gov

Less than and up to 70k income = less than 50% spent.

120k to 149,999k = 61% spent.

Let's play with Dog's #'s again but with gov stats.

50k income @ 50% expenditures = 25k @ 23% = $5,750.

149,999k income @ 61% expenditures = $91,499 @ 23% = $21,044.

Who is contributing more $$$ to the country?

[Mr. Big Dog 10,747]

Even if that wasn't his point, it is still true. The less you make, you spend a larger % of your income to just survive.

Exactly. If you make a lot of money, you have choices. You can spend it or you can stash it away. If you make little, you have no choice at all. You have to spend it just to get by.

All of a sudden, you'd be paying $5.00 a gallon for gas rather than $3.80, the used car you buy to get to work and back now costs $13,000.00 rather than $10,000.00, a new set of tires comes to $650.00 rather than $500.00, the visit to the doctors office now is $130.00 rather than $100.00, the $200.00 prescription now lightens our wallet $260.00.

Not a bad deal if you're a high income earner and save a boatload on federal income taxes. If you're around, let alone below, the median income range, however, there's no federal income tax savings worth mentioning to be had. Only huge new tax bills from this "fair" tax.

The "fair" tax proposal is a scam to shift the tax burden from the very wealthy to the masses. They want to amass more wealth and they want you to have ever less.

[Vi-Jay 218]

Alright, you demonstrate that you're entirely capable of totally missing the point. Not that I had any doubt that you would and could.

I didn't miss it.

Please see post #23.

I just prefer fair comparisons.

[Mr. Big Dog 10,747]

I didn't miss it.

Yes you did. Your subsequent post illustrates that yet again. Look, you can buy into any scam you want. I hear there was a lottery drawing in Jamaica that had your name on it. All you have to do is send in the fees and taxes and they will send you your grand prize. Really.

[Vi-Jay 218]

Yes you did. Your subsequent post illustrates that yet again. Look, you can buy into any scam you want. I hear there was a lottery drawing in Jamaica that had your name on it. All you have to do is send in the fees and taxes and they will send you your grand prize. Really.

Is "your math" a fair and accurate comparison or not?

Does my math show the larger wage earners are contributing a tremendous amount more than lower wage earners?

Are you suggesting the gov has perpetrated a Census "scam"?

if not, Then what "scam" are you referencing?

Edited May 25, 2011 by Vi-Jay

[Vi-Jay 218]

It's not a surprise to me.

It's a lot like ####### envy.

That other guy makes so much more money than me.

I want him to pay more taxes than me.

Then the gov can give me some of his $.

Robin Hood made it seem very romantic and reighteous huh.

and then, When the math is laid out.

A is contributing a kids value menu while B is contributing the adult meal and more.

Edited May 25, 2011 by Vi-Jay

[웃 910]

if not, Then what "scam" are you referencing?

It is a scam. If a poor family pays $300 in groceries a week they now pay a 30% tax or $90 more........To the multi millionaire that is nothing but that is a huge tax to a low income earner. Look at the gas prices. The upper class could pay $5 a gallon no problem but it will massacre the lower and even middle class ($3.90 + 30% = $5.07/gallon).

To top it all off, the poor and middle class who are typically paying NO INCOME TAXES getting $3,000 in tax refunds and not paying 30% more on everything they buy are going to pay 30% more for everything they buy and lose that $3,000 tax refund each year!! How is that stimulating the lower and middle class. And how is that fair?

Edited May 25, 2011 by Lord Infamous

[Vi-Jay 218]

It is a scam. If a poor family pays $300 in groceries a week they now pay a 30% tax or $90 more........To the multi millionaire that is nothing but that is a huge tax to a low income earner. Look at the gas prices. The upper class could pay $5 a gallon no problem but it will massacre the lower and even middle class ($3.90 + 30% = $5.07/gallon).

To top it all off, the poor and middle class who are typically paying NO INCOME TAXES getting $3,000 in tax refunds and not paying 30% more on everything they buy are going to pay 30% more for everything they buy and lose that $3,000 tax refund each year!! How is that stimulating the lower and middle class. And how is that fair?

So? Fair to say?

Slaughter the milk cow so we can all eat beef?

Edited May 25, 2011 by Vi-Jay