The Tax Base under the FairTax
Under the FairTax, all consumption of new goods and services (except tuition for education) is taxed at the same uniform rate.
The Bureau of Economic Analysis (BEA) keeps data on aggregate national personal consumption expenditures (PCE) as part of its National Income and Product Accounts (NIPA). If you are curious you can see how the BEA defines Personal Consumption Expenditures.
For 2003, the total PCE was $7709.9 billion dollars, of which $200.4 billion was for education and research. So the PCE contribution to the FairTax tax base is $7709.9 - $200.4 = $7509.5 billion.
The FairTax also taxes government consumption. The BEA keeps data on government consumption as well. For 2003, government consumption was $1,736.7 billion dollars.
So the total FairTax tax base is $7509.5 + $1736.7 = $9246.2 billion dollars.
posted by quadrupole @ 2:42 AM
3 comments
3 Comments:
Thanks for the figures. It does actually show every dollar of government consumption (1.7 trillion in 2003) will "carry" (pay) the sales tax. There is no exemption for miilitary.
And I realize WHY you cant exempt the military. If you did, the 23% would work out, math wise.
Im really concerned about the logic and math of this. Yes, you COULD just force the military, army, navy to cough up and extra 220 billion. But to PAY that -- am I the only one that sees a problem? Wouldnt the Army and Navy have to GET more money, to PAY those billions?
I think one of two things will happen, with the same effect either way. Either the military will get exemptions from paying it -- or it will have to get higher budgets to pay it. And then, you just add 220 billion to the budget.
Dont take this page down. Keep it up. It shows how Fairtax is counting on the absurd nonsesnse of making the government pay its own taxes.
Lately, I have exposed this farce, this nonsense, all over the net. And some in the fairtax camp have had to backtrack. They are now saying that while they would tax the federal government, they arent really counting on that money.
Bull crap. This page proves they are counting that money. Government consumption - they are taxing.
And thats a major reason Fairtax is a crock, and the leaders know it.
If you have been fooled by Fairtax, don't get mad at me. Get mad at the con artist that fooled you.
HI
Thanks for figuring out the reports about tax..Everyone should know these type of figure outs so that they can also know about tax and its pro's and con's..But i couldn't see any post after 2005.please keep updating latest information..
Tax
Post a Comment
<< Home