What Is Your Opinion of The 'Fair Tax' That Is Being Promoted By Mike Huckabee and Neil Boortz. Is It True That It Would Add 23% To Everything We Buy?
There have been a lot of tax reform ideas floated over the years, but none have excited me as much as the Fair Tax. The Fair Tax would completely eliminate income taxes for individuals and corporations and would be replaced by a national sales tax of 23%. For those that don’t want to get the details, they go around talking about this as a 23% tax increase and do not understand all of the offsetting savings.
First, if corporations are no longer paying any taxes the cost of goods and services will drop dramatically.
This means that even though 23% will be added as a sales tax, the base price of everything we buy will be much less. Some argue it will be a complete wash (the 23% sales tax will be offset by a 23% reduction in the cost of goods and services). I don’t know if I am completely convinced that the Fair Tax would accomplish that, but I don’t care. Even if we still paid a net 10% as a sales tax on everything we purchased, it would still be far better than the broken income tax system we have now.
Secondly, every taxpayer would receive a ‘prebate’, which would be a monthly check varying in size based on your marital status and how many dependents you have. The prebate check would reimburse you for the taxes that you paid for basic living expenses. There is a table that you can go to to see exactly how this works Prebate Table. A married couple with four children would get a monthly check for $462. This money is intended to offset the taxes would have been paid on approximately $2,000 of purchases in a given month.
Another great benefit of the Fair Tax is that it will bring in hundreds of billions of dollars from people that are currently not filing tax returns. There is no way to calculate what amount of money this would be, but if we are taxed on what we spend, there would be no way for those living in the underground (cash) economy to evade taxes. This includes illegal immigrants!
This is a great tax reform idea and would eliminate the IRS! The problem is that there are a lot of people that know just enough about the concept to be misinformed. I am 100% behind Neil Boortz and John Lindner on this one. For more information www.FairTax.org
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