The Fair Tax Act Part XXXVII
Section 510 handles required info for receipts:
`SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED.
`(a) In General- For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase. For purchase of taxable property or services for which a tax is imposed by section 101, the seller shall provide to the purchaser a receipt for each transaction that includes–
`(1) the property or services price exclusive of tax;
`(2) the amount of tax paid;
`(3) the property or service price inclusive of tax;
`(4) the tax rate (the amount of tax paid (per paragraph (2)) divided by the property or service price inclusive of tax (per paragraph (3));
`(5) the date that the good or service was sold;
`(6) the name of the vendor; and
`(7) the vendor registration number.
`(b) Vending Machine Exception- The requirements of subsection (a) shall be inapplicable in the case of sales by vending machines. Vending machines for purposes of this subsection are machines–
`(1) that dispense taxable property in exchange for coins or currency; and
`(2) that sell no single item exceeding $10 per unit in price.
`(c) Financial Intermediation Services Exception- The requirements of subsection (a) shall be inapplicable in the case of sales financial intermediation service. Receipts shall be issued when the tax is imposed (in accordance with section 803 (relating to timing of tax on financial intermediation services)).
Note the exception for vending machines (someone got to griping at me pretty hard about that possible loophole once…). Also note your taxes will be stated separately for the taxes paid on your interest when you get loan statements from the bank.
`SEC. 511. COORDINATION WITH TITLE 11.
`No addition to tax shall be made under section 505 with respect to a period during which a case is pending under title 11, United States Code–
`(1) if such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses; or
`(2) if–
`(A) such tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee; and
`(B) the petition was filed before the due date prescribed by law (including extensions) for filing a return of such tax, or the date for making the addition to tax occurs on or after the date the petition was filed.
The thrust of this section is to protect people filing for bankruptcy from additional tax penalties so long as they are getting their paperwork in on time.
James,
Here we go again. With regard to the sales receipt everyone will get for each transaction: The receipt according to sec.510 (a) for a $10 dollar (tax exclusive) purchase will read like this: (1) price – $10.00; (2) tax – $3.00; (3) total – $13.00.
(To this point, the receipt reads just like any Florida sales receipt today. Everyone would assume the sales tax rate was 30%. No confusion. But now the murk thickens:) (4) Rate – 23%??????. In a piece of legislation that is trying to establish a national sales tax, why is a rate that by inspection is clearly 30% described as 23% on the receipt? The question that will surely follow from the customer would be: “Gee, if the rate is only 23%, you charged me $.70 too much, didn’t you Mr Retailer?”
This nonsense has got to end. The rate in terms that every American understands is 30% and Fairtax advocates should just accept that fact and move on. To do otherwise invites charges of misleading the public.
You have got to give the public a little credit here on this. If this bill passes, this will get aired out and possibly corrected in the bill or the public will simply get it on their own. (Believe me, even non-English speaking immigrants figure out the goofy rules of how money works via the school of hard knocks very quickly.)
But I honestly think the rate will likely get your semantic edit before all is said and done if the bill gets close to passage.
For our purposes here, we should be past this. We know the score here on this blog and do not pretend otherwise.
Here I am, James Kidd, blogger of the bill, stating publicly, the FairTax exclusive rate that people will pay at the register is 30%. I am not hiding, dismissing or disguising this and have not from day one. It’s been covered in every discussion and publication about the FairTax for the past 2 years or so (at least since I started paying attention). But we can’t alter the language of the bill (at least for now).
Point well taken- time to move on. To tell the truth, my idiot lesson really belonged on a site for newcomers like Fairtaxgroups.com, but I’m persona non grata there. And I do give you credit for properly stating the rate- just wish others would also. I suspect that one of the first changes the staff of W&M makes will be this one.
I notice many Florida bloggers keep saying that we need to pass HR25 “as written”. They should be prepared for disappointment- legislation is always a series of compromises. No one gets everything- it’s the nature of the system. Chris Mathews of “Hard Ball” fame once wrote a book called the “Dance of Legislation” based on his service under Tip O Neil. Well worth reading.
Look forward to your continued efforts to blog the whole dam bill. There are some interesting sections ahead!!!