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31 sats \ 13 replies \ @freetx OP 20 Feb \ on: House GOP Bill Aims to Abolish the IRS and Rewrite the Tax Code Politics_And_Law
So it appears the way the rebates work is a monthly check is sent out to everyone based on your tax status (married w/ kids, etc).
This is pretty interesting! There is a couple of angles you can look at this....
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Family of 4 yearly rebate: $11,820 broken down to $985 monthly. Single adult $5,730 annual broken down to $477 monthly.
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Effectively it works like a "points system" on your credit card (ie. 5% cash back). That money returned would be tax-free and you can do cool things like stack sats with it
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It also functions a bit like UBI as all citizens would receive this rebate
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It also would apply to illegals so they would pay into the system, but probably not get the rebate check
I read the rebate is sent only to net tax payers. 40 percent of tax filers pay zero income tax to the Internal Revenue Service
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I found the bill online and ran it thru Perplexity. It says:
Rebates Availability
Scope of Eligibility:
The FCA rebate is not restricted to taxpayers. Instead, it is available to all "qualified families" who meet residency and registration requirements, regardless of income level or tax liability.
Qualified Family Definition:
A "qualified family" includes individuals sharing a common residence and their dependents, such as spouses, children (biological, adopted, or under legal guardianship), and lineal ancestors (e.g., parents, grandparents).
Exclusions:
- Incarcerated individuals scheduled to be confined for six months or more2.
- Non-citizens without lawful residency status.
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I believe @Bell_curve is thinking of the recently proposed DOGE rebates, which would only be sent to net tax payers.
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yes! that's the one!
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This is so much better. It also gets the government out of our personal and business finances.
Another benefit is that people really feel the tax, and everyone feels it. That should offer more resistance to tax increases than the current system of selectively taxing certain groups.
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That might be the best part of switching to sales taxes. There's no more need for intrusion into our personal finances.
100%
Also I love it from a philosophical standpoint. Consumption can be avoided...income tax is not.
(Aside can't find mention of exemptions but it seems like there would need to be some things either totally exempt or having a reduced tax rate imposed...things like food, mortgage payments, rent, insurance payments, etc)
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Maybe they would let states make some of those decisions, since this is piggy backing on the state (or local) sales tax systems.
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Maybe they would let states make some of those decisions
Great point. Probably the cleanest solution.
An alternative idea is to just tax everything (any time money changes hands for whatever reason), but make it a very low rate like 2%. In some ways this would be "fairest" since it wouldn't impact daily necessities but then also capture things like stock trading, etc.
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My dad read about a proposal to do that years ago. He was quite taken with the idea.
My main objection to that is the introduction of a bunch of new points of friction in our transactions. If a larger rate is levied at the point of final consumption, the tax incidence will impute it's way back through the production structure.
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