Saturday, March 6, 2010

The food tax is a Regressive tax hurting the poor the most

The Michigan Fair Tax includes taxing Food. Oh yes, they promise that if you register with the state, using your Social Security Number, you will receive a PreBait based on 10% of the National Poverty Level. What a deal. Well, how is the Food Tax going over in Phoenix?

PHOENIX- The Phoenix City council meeting on March 2 2010, where Off the grid Guy Aka Morpheus blasts the city council for running a SCAM on the people of the city. First they run the city close to bankruptcy by dramatically overpaying city employees at a rate of over $100,000 in wages and benefits according to councilman Sal Diciccio

From there they have an Emergency Food Tax meeting where they add the increased burden of a tax on food to the citizens of phoenix.

Scheduling town hall meetings across the city where they tell the people they are going to discontinue city services like libraries, parks and senior centers in an effort to make the budget balance. Knowing full well that the exorbitant wages and benefits packages which the Police and Fire receive is a full 72% of the total budget. This is typical government inaction attacking those things which are least likely solve the problem they created in the first place. FULL STORY

It just doesn't matter how you package it, it is still a PROGRESSIVES scam on the people.


Daar said...

The MI FairTax UNtaxes ALL poverty-level spending with cash - not some code-defined, politican-mediated tax code. It does so with "cash on the barrelhead." Someone who can afford caviar and expensive wine can better able afford to pay the tax than can a person on moderate income. Thus, under the MI FairTax, the person of moderate income will have the "milk and bread" tax returned. The wealthier individual will also have an amount equal to the "bread and milk" returned. That amount that the wealthier person spends above the poverty-level will also increase their effective rate (in a voluntary, yet fair, manner).

As has been pointed out, previously, by Ian (where "IT"=income tax and "FT"=MI FairTax):

IT: Annualized basis, NOT UNIFORMLY APPLIED. The wealthier one is, the greater access to tax professionals. And, the tax code is ONLY TO HAPPY to provide shelters to the super-rich.
FT: Non-annualized basis. UNIFORMLY APPLIED without special treatment for the wealthy. The more you spend, the higher the FT rate you pay. Using a family of four, MI FT rate of 9.75% (BEFORE APPLYING THE REBATE) and spending shown (over 12 monthly periods) result in the EFFECTIVE (post-REBATE APPLIED) rate for that family:

Spending of $21,200 = NO TAX(Prebates rec'd covered all taxes.)
Of $ 42,400 = 4.88% (*) (effective MI FairTax %, after prebate applied)
Of $ 50,000 = 5.62%
Of $100,000 = 7.68%
Of $200,000 = 8.72%
Of $800,000 = 9.49%

(*) and it's actually more like 2.7% if savings, and other non-taxable expenses are included; money placed into savings is not available to pay a tax, while interest/investment income is not subject to tax - thus wealth accumulation will be far easier for the average working Michigander under the FairTax plan. -df

For Ian's thorough list of comparatives, view my first comment here.

wraft said...

I don't like the idea of any taxes period. Michigan should print up its own currency and fund itself without taxes.

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