H.R.25 - 118th Congress (2023-2024): FairTax Act of 2023 | Congress.gov | Library of Congress Enjoy the read.
Interesting... "No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill."
Is the plan to eliminate money (not likely), dissolve the IRS, eliminate income tax? So many possibilities.
What a screw job. So any money I haved saved and already paid taxes on, I get the pleasure of paying taxes on again when I spend it. That really makes a roth 401k completely worthless. Pay 23% tax upfront, then 20+% later to spend it. So much for having money at 59 1/2 without a tax event. I thought inflation was making me broke, but this would ruin everyone that saved money for retirement or a rainy day. Cheers Os
Thats exactly what it sounds like. I can hear it now. “Anybody that has money saved can surely afford to pay taxes twice. The typical person today doesnt have savings, so it only affects the rich, not those living paycheck to paycheck that will never have a nest egg. Cheers Os
Many people have 401k's through their place of employment, if that bill becomes law it's going to affect a large portion of the workforce.
It wouldn’t affect regular 401 k’s where contributions are tax free aka pre tax, and taxes are paid upon dispersement of funds. In a Roth 401 k, is after tax or already taxed money put into retirement that was specifically designed to have tax free distribution. The beauty was you paid taxes before your money grew and you didnt pay taxes on its earnings at distribution time, opposite of conventional 401 k. I play both games, the idea being if I need money without creating a tax event, i take it from Roth. I suppose their will be a line somewhere that says retirement benefits to gov employees will somehow be exempt. Cheers Os
And a lot of people whos only income is social security, and not many people are still going to have health insurance through their employer when they retire. It does away with the "payroll tax." That is social security and medicare. How long will it be before they make the excuse that they can't keep funding it and will have to cut it off? If you read the fine print, that bill makes it easier for millionaires to become billionaires and so on. They will have it made. 23% tax to them isn't anything. But someone that is work three jobs just to keep the rent paid, that is a lot! They will increase it to top out at 30% over subsequent years. And no IRS to keep them in check?
It looks like something that would really benefit the 1%. I am no fan of the IRS, but I don't see this benefiting middle income America. People aren't going to buy anything unless they absolutely have to.
I did tax later on the bulk of it, and tax up front on a smaller percentage. The idea being it’s good to have some money available without any ‘tax event’ upon distribution. Then there is also the concept that’s it’s better to pay taxes on your money before it grows, as opposed to after. Paying taxes before or after, it’s a crap shoot either way, that’s why I do both kinds of plans. One thing guaranteed, you pay sooner or later. I’m ok with that. I’m not ok with paying sales tax on top of already paid income tax. Cheers Os
The bill won't even get out of the House. Among the things House Speaker Kevin McCarthy (R-Calif.) promised a group of 20 hard-right holdouts in order to win the speaker's gavel was a vote on legislation that would scrap the Internal Revenue System and U.S. taxation system and replace it with a 30 percent national sales tax. Rep. Buddy Carter (R-Ga.) has already filed legislation for this "Fair Tax Act," but McCarthy told reporters on Tuesday he opposes the bill. McCarthy isn't alone. Three GOP congressmen from New York swing districts have already pledged to vote against it — effectively dooming the long-shot legislation. Kevin McCarthy disavows 30 percent national sales tax he promised a vote on to win House speaker race (yahoo.com)
That 30% applies to EVERYTHING, including groceries. Something that has never been taxed before. IF, this bill passes, which I don't think it will, anyone with a brain and a few square yards of land can grow their own garden if desperate enough. I had a garden for years, raised my own vegetables, did a lot of canning. Like a friend of mine in college said, "I've think we have gotten soft." Which is true. Would you be able to survive if everything hit the fan?
Sure could. I've been running indoor food growing tests for a little bit. I've found bush style green beans to be an excellent candidate for mass indoor growing. Currently testing dwarf tomatoes. My parents plant a massive garden and also raise beef cattle and make maple syrup.
There you go!!! My kids would starve to death. I tried teaching them gardening, how to make the soil rich, composing, hunting for your own food. The only thing that caught on, with one of my girls anyway, was fishing.
The plan is to get rid of paper currency. Have it all digital so each purchase is recorded and keep tracked of long term plan is to Limit how Much we consume. Like we can only eat one steak a month or a cheeseburger per month
I sure tried last summer to see just how much I could grow. We still have over a dozen winter squash and some salsa but that’s about it. If I were to survive off of it solely I reckon I’d need 2,000-3,000 sf per person. Even then I’d need to eat some bunnies and eggs. Getting enough fat would be a challenge. Veggie Garden 2022