Jerry Springer Endorses the FairTax
February 4, 2006 · Filed under: Media Citings, Public Support
A news tip from reader Jon Mitchell:
I just heard Jerry Springer ENDORSE THE FAIR TAX on Fridays show - “as long as it’s graduated** and first 20K is not taxed”. I don’t know exactly what “graduated” means. PLEASE CONFIRM!
I don’t have any information, but if anyone else heard the show and wishes to discuss it, post your comments below.
4 Responses to “Jerry Springer Endorses the FairTax”
“Graduated” could mean multiple things.
If he means by net taxation per capita, then the FairTax is a graduated by tax by definition.
If he means what I think he means, then he expects there to be a higher tax rate levied on those who make/spend more money — i.e. the wealthier you are, the higher your “fair” tax.
If he means the latter, then it’s a load of crap. But at least he’s getting the FairTax some exposure.
Jerry Springer is likely talking about the Family Consumption Allowance (FCA). The FCA is also known as the prebate. The FCA untaxes purchases up to the poverty level.
It can be called Graduated because spending up to the poverty level is 0% and then 23% for spending above the poverty level.
A Fair Tax plan Overview Part 1
The FairTax plan is a plan to replace federal income and payroll taxes. This includes personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes.
Based on the “first 20K not taxed” and the term “graduated”, it is clear he does not have a full understanding of the FairTax. The prebate, as well as the fact that you choose if, when, and how much, tax you pay, based on your spending habits, makes the FairTax “graduated”. And, to compliment Bill Rook’s statement, your “effective” tax rate will “always” be less than 23% because of the prebate (unless you’re an illegal alien, who does not get the prebate).