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The U.S.A. National Sales Tax (NST) Hoax: “The Poverty Level Income Will Not Be Taxed”

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Representative Linder’s bill proposing a National Sales Tax (NST) requires a “pre-bate” of 23% of the poverty level income of $9,310. The pre-bate would be $2,141.30 ($9,310 * .23 = $2,141.30).

A person on a poverty-level income could buy $7,137.66 worth of products and services using the pre–bate to pay the 30% NST (.30x = $2,141.30 therefore x = $7,137.66).

Then this same person would need to use only his remaining $2,172.34 ($9,310 – 7,137.66 = $2,172.34) to buy $1,671.03 worth of products and pay $501.31 for NST (x + .30x = $2,172.34 therefore x = $1,671.03 for products).

$2,172.34 total available minus $1,671.03 for purchases = $501.31 for NST. Read the bill and do the math. Also see the math and a larger discussion on National Sales Tax.

What sort of irrational, cruel people are promoting this system as a fair tax, when a person with a poverty-level income pays $501.31 in federal taxes?

This would severely punish the people living off of Social Security.

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About Harris Dyes

  • RedTard

    Why waste your time writing this article and crunching the numbers when you have already prejudged the idea?

    The key factor you left out was the 14% of everyone’s paycheck that goes to SS/Medi, this would be eliminated and rolled into the NST. Adding that into the calculation would put a person in poverty ahead.

    Since you claim this was your reason for being against the NST, I suppose after reconsidering you should have to support it. However, most people don’t come into these things with open minds and don’t describe their real reasons for opposition.

  • Nancy

    What sort would propose & support it? Obviously, the sort of irrational, callous, obscenely wealthy people who currently run this administration & congress, that’s who.

  • http://www.diablog.us Dave Nalle

    This article is so inaccurate that it really should never have been posted.

    The first fundamental problem here is that you are using the one-time 2005 figure for the rate of 23% which is irrelevant since the tax was not passed for 2005. The first year it could possibly take effect is 2006 and under the bill the rate would be 30% in 2006, not 23%.

    You also have the poverty level wrong. You seem to be using the 2004 figure. The poverty line for 2005 is $9570, and for 2006 which would be the first year this tax could possibly be in effect it is expected to be $9830.

    These two things together mean that your concluding figure is also incorrect, and should actually be less than 0, so your entire argument is bogus. People below the poverty line would pay no tax.

    What sort of irrational, cruel people are promoting this system as a fair tax

    Apparently people who can use accurate data and do math.

    Dave

  • Catana

    Ahead of what, RedTard? I live on SS, with an income just barely over $10,000. I do without most of the things that most people consider necessities. Please tell me what you mean by “ahead?” By how much, and what is it actually worth when the real cost of living actually exceeds yearly COL increases?

  • RedTard

    Ahead of their current situation. I’m not sure what events led you to live on SS as your only a source of income, but it’s not all doom and gloom. At least you have SS, by the time I retire I will either get a greatly redued sum, or will not qualify because I had the foresight to save for myself.

    You have access to a computer and the internet with free time to spend sitting around complaining on it. I doubt you go hungry and you probably have a roof over your head.

    You have more material things and more freedoms than most of the world’s population will ever dream of. Be thankful.

  • http://www.diablog.us Dave Nalle

    Oh, and just let me add this. You’re tilting at windmills. This bill isn’t even being considered anymore. It died in committee more than a year ago. But keep fighting your brave and confused fight against imaginary threats.

    Dave

  • Catana

    ReTard (excuuuse me–RedTard) I really love the way you always manage to drag in irrelevancies and make assumptions.

    Is the fact that I’m almost 69 and partially disabled enough to give me permission to say anything in this discussion? Or the fact that my computer is a gift from one of my sons? I’m grateful for whatever I have, though that’s a hell of a lot less than most Americans have, but that has nothing to do with the topic under discussion.

  • http://ruvysroost.blogspot.com Ruvy in Jerusalem

    I feel for you Catana. This computer I’m typing on is also a gift – my laptop broke down two years ago. On a different list, one for wannabe immigrants to Israel, I always point out that while $10,000 a year will not suport a family here, a $10,000 pension will support an individual comfortably here.

    I understand what you are saying when you say you do not have many of what others consider to be necessities. We’re pretty much in the same boat.

    In Hebrew we have a saying – “habriút ha’íkár” – health is the point. May you have a healthy and pleasant evening.

    Blessings from the City of David

  • Catana

    Thanks for the nice thoughts, Ruvy, and all the best to you, too. Having grown up in a family with too many kids and too little income, I’ve learned to be happy without too many “things.” And in spite of RedTard’s rather negative spin, I know that I’m much better off than millions of people all over the world.

  • http://ruvysroost.blogspot.com Ruvy in Jerusalem

    I can’t comment on the proposals for an NST in the States, but we have a VAT (value added tax) of 16.5% in addition to income taxes that Americans would find prohibitively high. Then again, our government, in addition to being one of the most corrupt in the world, has real burdens that most Americans would also find unacceptable and excessively burdensome.

    VAT is charged on EVERYTHING. Even the subsidized loaves of bread that folks buy here (you can buy the soft cottony garbage like you have in the States and pay twice the price – or more) has VAT charged on it. The subsidized bread tastes great, by the way.

    VAT is a tax on the poor because they do not have the extra wherewithal that rich folks do. I’ve discovered that when governments try to alleviate the burden of regressive taxes on the poor, they just don’t do a proper job.

    If the NST is revived in America, it probably will not have adequate provisions to protect poor people from the burden it imposes.

    Whatever happened to fiscal responsibility in America anyway? Did you all flush it down the toilet when you elected George Bush?

  • PoorMama

    I am a single mother of 2 – I did not ask for my husband to leave us. He earned a very good salary and I was going to college when he left. I finally finished while taking my 2 babies to school with me and now I am substitute teaching, earning $7 an hour, and that is when I get called and nothing during the summer. To supplement, I sell on Ebay and I paint houses, but I have children who are too young to be left alone and I cannot afford childcare – even working 3 jobs, I earn only a few thousan dollars a year, less than $5,000! I use my child support to put a roof over our head and buy food. I have been applying for jobs – I am hoping to get a teaching position, but have applied for other jobs as well. I worked for 6 months as a loan officer and earned not one single cent. In fact, I went into debt several thousand dollars to pay marketing expenses, listening to people who said to hang on, just wait, business will get better. I feel like I am going nowhere so I work harder and harder, only to still bring in a sum ridiculously less than the poverty level. People like me need childcare assistance so we can go look for jobs and start a new job and have our childcare in place. The waiting list is months long for childcare, so when I do get offered a job, what do I do with my children? Also, what about the jobs that require me to work until 6 or 7 pm, but daycares close at 6? This country needs solutions for people who work hard but have children and have had circumstances occur that suddenly and drastically change their lives.