Archive for April 2007
The Fair Tax Act, Part LVII
April 30, 2007 · Category: Education
Section 903 details how your Social Security benefits will be calculated after the FairTax is implemented:
`SEC. 903. WAGES TO BE REPORTED TO SOCIAL SECURITY ADMINISTRATION.
`(a) In General- Employers shall ...
Posted by James Kidd · 9 Comments »
The Fair Tax Act, Part LVI
April 27, 2007 · Category: Education
Here we go with Section 902: Transition Matters.
`SEC. 902. TRANSITION MATTERS.
`(a) Inventory-
`(1) QUALIFIED INVENTORY- Inventory held ...
Posted by James Kidd · No Comments »
The Fair Tax Act, Part LV
April 26, 2007 · Category: Education
More of section 901:
`(f) Substance Over Form- The substance of a transaction will prevail over its form if the transaction has no bona fide economic purpose and is designed to evade tax imposed by this ...
Posted by James Kidd · No Comments »
Jay Bookman Decries “Faith in the FairTax”
April 23, 2007 · Category: Criticisms
FairTax critic Hayden Kepner sent me a link to Jay Bookman's new column "Fervent faith in the FairTax defies reason."
I tired of the ad hominem attacks after the first few paragraphs, but perhaps ...
Posted by Joshua Zader · 68 Comments »
The Fair Tax Act, Part LIV
April 23, 2007 · Category: Education
Moving on to Chapter 9 which covers a wide assortment of miscellany:
`(a) Intangible Property Antiavoidance Rule- Notwithstanding section 2(a)(14)(a)(i), the sale of a copyright or trademark shall be treated as the sale of taxable services ...
Posted by James Kidd · 6 Comments »
The Fair Tax Act, Part LIII
April 20, 2007 · Category: Education
Another two short sections and we're finished with Chapter 8:
`SEC. 805. BASIC INTEREST RATE.
`For purposes of this chapter, the basic interest rate with respect to a debt instrument, investment, ...
Posted by James Kidd · No Comments »
The Fair Tax Act, Part LII
April 18, 2007 · Category: Education
I'll try to cover two short sections today:
SEC. 803. TIMING OF TAX ON FINANCIAL INTERMEDIATION SERVICES.
`The tax on financial intermediation services provided by section 801 with respect to an ...
Posted by James Kidd · 14 Comments »
The Fair Tax Act, Part LI
April 17, 2007 · Category: Education
Moving on with Chapter 8, which defines bad debts:
SEC. 802. BAD DEBTS.
`(a) In General- For purposes of section 205(a), a bad debt shall be a business debt that becomes ...
Posted by James Kidd · No Comments »
The Fair Tax Act, Part L
April 16, 2007 · Category: Education
OK, we begin Chapter 8 which is all about Financial Intermediation Services. This is odd stuff to many people so I expect many questions. The first section determines how much of what you ...
Posted by James Kidd · 5 Comments »
The Fair Tax Act, Part XLIX
April 13, 2007 · Category: Education
Section 706 deals with one of the stickier areas of any tax law: Non-profit organizations.
`SEC. 706. NOT-FOR-PROFIT ORGANIZATIONS.
`(a) Not-for-Profit Organizations- Dues, contributions, and similar payments to qualified not-for-profit ...
Posted by James Kidd · 25 Comments »
Landlords and the FairTax
From reader Nathan T:
First let me say congrats on the excellent website. I have been really curious what all the talk is about the fair tax and your site had many of the answers ...
Posted by Joshua Zader · 16 Comments »
Will the FairTax Create “Welfare Families”?
April 11, 2007 · Category: Criticisms
From reader Hank Van Geison:
In order to protect lower income families from the regressive consequences of a national sales tax, HR25, the Fairtax, incorporates a “prebate” of taxes paid on consumption up to the national ...
Posted by Joshua Zader · 13 Comments »
The Fair Tax Act, Part XLVIII
April 11, 2007 · Category: Education
The next section covers mixed use property (Hank's boat might qualify):
`(a) Mixed Use Property or Service-
`(1) ...
Posted by James Kidd · No Comments »
The Fair Tax Act, Part XLVII
April 9, 2007 · Category: Education
Section 704 talks about government enterprises, which are treated more or less like businesses:
`SEC. 704. GOVERNMENT ENTERPRISES.
`(a) Government Enterprises To Collect and Remit Taxes on Sales- Nothing in this ...
Posted by James Kidd · 4 Comments »
The Fair Tax Act, Part XLVI
April 5, 2007 · Category: Education
Section 703 strictly details that governments are taxed under the FairTax (an issue beaten to death, but here we go again I suppose):
`SEC. 703. GOVERNMENT PURCHASES.
`(a) Government Purchases-
...
Posted by James Kidd · 11 Comments »
The Fair Tax Act, Part XLV
April 4, 2007 · Category: Education
The next special rules section is for gaming activities & gambling:
`SEC. 702. GAMING ACTIVITIES.
`(a) Registration- Any person selling 1 or more chances is a gaming sponsor and shall register, ...
Posted by James Kidd · 2 Comments »
The Fair Tax Act, Part XLIV
April 3, 2007 · Category: Education
OK, one of the best chapters in the bill for education reasons: Chapter 7: Special Rules!
`SEC. 701. HOBBY ACTIVITIES.
`(a) Hobby Activities- Neither the exemption afforded by section ...
Posted by James Kidd · 6 Comments »
The Fair Tax Act, Part XLIII
April 2, 2007 · Category: Education
Section 606 establishes the ability of the tax authority to authorize installment payments and also to compromise (settle at lower dollar amounts) taxes/penalties due.
`SEC. 606. INSTALLMENT AGREEMENTS; COMPROMISES.
`The sales ...
Posted by James Kidd · No Comments »
