How the new tax law affects you

[Dinar_OS]

http://money.cnn.com/2006/05/16/pf/taxes/tax_bill_and_you/index.htm

NEW YORK (CNNMoney.com) - President Bush on Wednesday afternoon signed into law another landmark piece of tax legislation.

The new tax law extends for two years the 15 percent rate on long-term capital gains and dividends. For low-income taxpayers, that rate will be 0 percent.

My personal favorite is that second sentence.

[BEEFCAKE]

http://money.cnn.com/2006/05/16/pf/taxes/tax_bill_and_you/index.htm

NEW YORK (CNNMoney.com) - President Bush on Wednesday afternoon signed into law another landmark piece of tax legislation.

The new tax law extends for two years the 15 percent rate on long-term capital gains and dividends. For low-income taxpayers, that rate will be 0 percent.

My personal favorite is that second sentence.

:D Let us hope and pray when we cash in our dinar we are no longer in the low income tax bracket:D

[tmorr37]

http://money.cnn.com/2006/05/16/pf/taxes/tax_bill_and_you/index.htm

NEW YORK (CNNMoney.com) - President Bush on Wednesday afternoon signed into law another landmark piece of tax legislation.

The new tax law extends for two years the 15 percent rate on long-term capital gains and dividends. For low-income taxpayers, that rate will be 0 percent.

My personal favorite is that second sentence.

The low-income taxpayer has paid near zero percent in tax so there would be no cut. The Top 50% pay 96.54% of All Income Taxes
The Top 1% Pay More Than a Third: 34.27%

Think of it this way: less than 3-1/2 dollars out of every $100 paid in income taxes in the United States is paid by someone in the bottom 50% of wage earners. Are the top half millionaires? Noooo, more like "thousandaires." The top 50% were those individuals or couples filing jointly who earned $29,019 and up in 2003. (The top 1% earned $295,495-plus.) Americans who want to are continuing to improve their lives, and those who don't want to, aren't. Here are the wage earners in each category and the percentages they pay:
The top 1% pay over a third, 34.27% of all income taxes. (Up from 2003: 33.71%) The top 5% pay 54.36% of all income taxes (Up from 2002: 53.80%). The top 10% pay 65.84% (Up from 2002: 65.73%). The top 25% pay 83.88% (Down from 2002: 83.90%). The top 50% pay 96.54% (Up from 2002: 96.50%). The bottom 50%? They pay a paltry 3.46% of all income taxes (Down from 2002: 3.50%). The top 1% is paying nearly ten times the federal income taxes than the bottom 50%! And who earns what? The top 1% earns 16.77% of all income (2002: 16.12%). The top 5% earns 31.18% of all the income (2002: 30.55%). The top 10% earns 42.36% of all the income (2002: 41.77%); the top 25% earns 64.86% of all the income (2002: 64.37%) , and the top 50% earns 86.01% (2002: 85.77%) of all the income.

[tmorr37]

This would help us out

http://fairtax.org/index.html

What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with an integrated approach including a progressive national retail sales tax, a rebate to ensure no American pays federal taxes up to the poverty level, dollar-for-dollar revenue neutrality, and the repeal of the 16th Amendment. This non-partisan legislation (HR 25/S 25) abolishes all federal personal, gift, estate, capital gains, (No tax on our Dinar) alternative minimum, Social Security, Medicare, self-employment, and corporate taxes and replaces them all with one simple, visible, federal retail sales tax – collected by existing state sales tax authorities. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. So it is also cost neutral – the final cost for goods and services changes little under the FairTax. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

What is Americans For Fair Taxation (FairTax.org)?
FairTax.org is a non-profit, non-partisan, grassroots organization dedicated to replacing the current tax system. The organization has hundreds of thousands of members and volunteers nationwide. Its plan supports sound economic research, education of citizens and community leaders, and grassroots mobilization efforts. For more information visit the web page: www.fairtax.org or call 1-800-FAIRTAX.

An Open Letter to the President, the Congress, and the American people
Concerning Reform of the Federal Tax Code
http://fairtax.org/pdfs/Open_Letter_President.pdf

[BEEFCAKE]

This would help us out

http://fairtax.org/index.html

What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with an integrated approach including a progressive national retail sales tax, a rebate to ensure no American pays federal taxes up to the poverty level, dollar-for-dollar revenue neutrality, and the repeal of the 16th Amendment. This non-partisan legislation (HR 25/S 25) abolishes all federal personal, gift, estate, capital gains, (No tax on our Dinar) alternative minimum, Social Security, Medicare, self-employment, and corporate taxes and replaces them all with one simple, visible, federal retail sales tax – collected by existing state sales tax authorities. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. So it is also cost neutral – the final cost for goods and services changes little under the FairTax. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

What is Americans For Fair Taxation (FairTax.org)?
FairTax.org is a non-profit, non-partisan, grassroots organization dedicated to replacing the current tax system. The organization has hundreds of thousands of members and volunteers nationwide. Its plan supports sound economic research, education of citizens and community leaders, and grassroots mobilization efforts. For more information visit the web page: www.fairtax.org (http://www.fairtax.org) or call 1-800-FAIRTAX.

An Open Letter to the President, the Congress, and the American people
Concerning Reform of the Federal Tax Code
http://fairtax.org/pdfs/Open_Letter_President.pdf

The national sales tax, which I see as the best way to tax, does that include large items such as cars or houses? I believe I heard 17% tax, and if it does, wouldn't that knock the real estate market down 17%. Also, I understand there will be no tax credits, is that true? Thank you in advance.

[tmorr37]

The national sales tax, which I see as the best way to tax, does that include large items such as cars or houses? I believe I heard 17% tax, and if it does, wouldn't that knock the real estate market down 17%. Also, I understand there will be no tax credits, is that true? Thank you in advance.

This one is the fairtax not flat tax. This would be a 23% tax on all new items at the point of sale. But what you don't see now is that there is a 23% embedded tax on all items now. Everyone involved in the making of, say a car has paid taxes, so the tax is embedded and can not be removed. This would be eliminated under the fairtax. If a new car now is 20.000 there is 23% hidden tax. Under the fairtax the cost of the car would be the same after the tax was applied.
This would be great on all our exports as all these embedded taxes would be removed reducing the price and all imports would have the 26% tax applied. A serious boom for this country as foreign investment would fly back in to this country, they say by 75% increase.
As with the tax credits, Gone. You would not have paid taxes so there would be no tax credit. No more IRS...Gone

The FairTax:

Abolishes the IRS
Closes all tax loopholes and brings fairness to taxation
Maintains our current Social Security and Medicare benefits
Brings transparency and accountability to tax policy
Allows American products to compete fairly
Reimburses the tax on purchases of basic necessities
Enables retirees to keep their entire pension
Enables workers to keep their entire paycheckhttp://fairtaxvolunteer.org/smart/faq.html
Frequently Asked Questions (http://fairtaxvolunteer.org/smart/faq.html) (FAQ's)

[dinner]

This would help us out

http://fairtax.org/index.html

What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with an integrated approach including a progressive national retail sales tax, a rebate to ensure no American pays federal taxes up to the poverty level, dollar-for-dollar revenue neutrality, and the repeal of the 16th Amendment. This non-partisan legislation (HR 25/S 25) abolishes all federal personal, gift, estate, capital gains, (No tax on our Dinar) alternative minimum, Social Security, Medicare, self-employment, and corporate taxes and replaces them all with one simple, visible, federal retail sales tax – collected by existing state sales tax authorities. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. So it is also cost neutral – the final cost for goods and services changes little under the FairTax. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

What is Americans For Fair Taxation (FairTax.org)?
FairTax.org is a non-profit, non-partisan, grassroots organization dedicated to replacing the current tax system. The organization has hundreds of thousands of members and volunteers nationwide. Its plan supports sound economic research, education of citizens and community leaders, and grassroots mobilization efforts. For more information visit the web page: www.fairtax.org (http://www.fairtax.org) or call 1-800-FAIRTAX.

An Open Letter to the President, the Congress, and the American people
Concerning Reform of the Federal Tax Code
http://fairtax.org/pdfs/Open_Letter_President.pdf

I support this plan whole-heartedly! Those of us in America need to get behind this plan! Call FairTax today!

PS I am not affiliated with FairTax in any way.

[tmorr37]

Real Estate under fairtax
http://fairtax.org/real_estate.html

FairTax.org is supported by several residential Realtors® and homebuilders because the FairTax increases home ownership and in turnboosts the American economy. Below are articles on how the FairTax furthers the real estate industry:

[BEEFCAKE]

This one is the fairtax not flat tax. This would be a 23% tax on all new items at the point of sale. But what you don't see now is that there is a 23% embedded tax on all items now. Everyone involved in the making of, say a car has paid taxes, so the tax is embedded and can not be removed. This would be eliminated under the fairtax. If a new car now is 20.000 there is 23% hidden tax. Under the fairtax the cost of the car would be the same after the tax was applied.
This would be great on all our exports as all these embedded taxes would be removed reducing the price and all imports would have the 26% tax applied. A serious boom for this country as foreign investment would fly back in to this country, they say by 75% increase.
As with the tax credits, Gone. You would not have paid taxes so there would be no tax credit. No more IRS...Gone

The FairTax:

Abolishes the IRS
Closes all tax loopholes and brings fairness to taxation
Maintains our current Social Security and Medicare benefits
Brings transparency and accountability to tax policy
Allows American products to compete fairly
Reimburses the tax on purchases of basic necessities
Enables retirees to keep their entire pension
Enables workers to keep their entire paycheckhttp://fairtaxvolunteer.org/smart/faq.html
Frequently Asked Questions (http://fairtaxvolunteer.org/smart/faq.html) (FAQ's)

Please forgive my ignorance, I am not trying to make you repeat yourself, or debate you on this, however, I am not understanding the "23% embedded tax on all items now". And the other thing I was wondering, is for the example of a car, wouldn't say Ford have to pay this tax on all parts it bought to build the car and in turn that would tack on to the MSRP. I am also thinking the company, say Ford, would save maybe 6 or 7 % in payroll taxes but the employees wage would not be lowered so that savings on income tax would go to the employee. Correct?

[tmorr37]

Please forgive my ignorance, I am not trying to make you repeat yourself, or debate you on this, however, I am not understanding the "23% embedded tax on all items now". And the other thing I was wondering, is for the example of a car, wouldn't say Ford have to pay this tax on all parts it bought to build the car and in turn that would tack on to the MSRP. I am also thinking the company, say Ford, would save maybe 6 or 7 % in payroll taxes but the employees wage would not be lowered so that savings on income tax would go to the employee. Correct?

As it works now taxes are payed by everyone involved in the car.
parts and all companies along the way.
Under fairtax no taxes are collected or payed until the product reaches the end sale, the consumer

[tmorr37]

Please forgive my ignorance, I am not trying to make you repeat yourself, or debate you on this, however, I am not understanding the "23% embedded tax on all items now". And the other thing I was wondering, is for the example of a car, wouldn't say Ford have to pay this tax on all parts it bought to build the car and in turn that would tack on to the MSRP. I am also thinking the company, say Ford, would save maybe 6 or 7 % in payroll taxes but the employees wage would not be lowered so that savings on income tax would go to the employee. Correct?
on payroll taxes no company pays these. we pay the payroll taxes
and no company pays taxes period. They only collect taxes and apply to the cost so we pay those taxes as well.
So when a politician says he wants taxes on some company or other it is us who will pay these taxes as it is added to cost.

[BEEFCAKE]

on payroll taxes no company pays these. we pay the payroll taxes
and no company pays taxes period. They only collect taxes and apply to the cost so we pay those taxes as well.
So when a politician says he wants taxes on some company or other it is us who will pay these taxes as it is added to cost.

The company pays half and the employee pays half of social security tax, so I can see where each would save. My question is, when Ford buys steel for it s cars or tires, or anything as a material, would they then have to pay an extra 23% on the tires and pass that on to the consumer or would they be exempt from this. If they pay extra, certainly it would be passed on to us, in addittion to another 23% fair tax when we bought a car from the dealer, so it is possible we would be paying quite a bit extra, no? I guess the real question is how would this fair tax make it cheaper to manufacture anything in this country, and/or what exactly is that embedded tax we don't see you spoke of earlier.

[peakoil]

Would certainly eliminate the LEGAL system regarding our present
collections.
Wow.. That is alot of overhead we pay for.
Nice piece.

[dinner]

The company pays half and the employee pays half of social security tax, so I can see where each would save. My question is, when Ford buys steel for it s cars or tires, or anything as a material, would they then have to pay an extra 23% on the tires and pass that on to the consumer or would they be exempt from this. If they pay extra, certainly it would be passed on to us, in addittion to another 23% fair tax when we bought a car from the dealer, so it is possible we would be paying quite a bit extra, no? I guess the real question is how would this fair tax make it cheaper to manufacture anything in this country, and/or what exactly is that embedded tax we don't see you spoke of earlier.

As TMORR explained above and as I have researched the FairTax, there would be no taxes levied on business-to-business transactions (eg Ford buying tires to put on a car). Taxes would only be levied on end consumer goods and services. ;)

[tmorr37]

News Flash!
In case you haven’t already heard, Neal Boortz is holding a FairTax Rally:
Date: Wednesday, May 24th
Time: 7:30pm

Where: Gwinnett Convention Center (not to be confused with the Gwinnett Arena, which is next door), Duluth, GA (just north of Atlanta)
http://www.gwinnettcenter.com/pages/header/h_maps.html

Link for directions: Click Here For Directions & Map of Grounds

To show strong grassroots support for the FairTax, we really need to make sure that this event is “standing room only”. If there is any way that you can be there it will help us a lot.

For those who can’t go, you can still make an impact.
Write a letter telling of your support for the FairTax.
Send the letter by this Friday or Saturday - to make sure it arrives in time.
Send the letter to the following address:

FairTax
The Neal Boortz Show
1601 W. Peachtree St. NE
Atlanta, Georgia 30309

We are hoping to use this rally to start generating the kind of media and forward motion that we need.

On May 24th, you will receive an email requesting you to email specific congressional leaders.

Watch out for this and send your emails to the Congressional leaders on that day, if at all possible.

REMEMBER TO INCLUDE info@Fairtax.org AS A RECIPIENT SO WE CAN TALLY UP THE NUMBER OF EMAILS THAT WERE SENT.

With the release of the paperback version of the Fairtax Book and its climb up various bestseller lists we are gaining momentum with the grassroots and Washington is starting to take notice. Now is the time to push and push hard to drive this legislation through.

We appreciate all of your support.

Jimmy Walby
Florida Grassroots Liaison
www.Fairtax.org