January 19, 2011
Please consider my understanding of the FAIRTAX as expressed below. It seems clear to me that the FAIRTAX is a win..win for both the government and the taxpayers. Thanks so much for your time.
John Pettengill, Richmond VA
Under the FAIRTAX you will pay over 4 percent less for everything and still pay the federal government the same amount in taxes as you pay today…plus no April 15th tax preparation.
Today the one dollar shelf price of a loaf of bread includes 23% business taxes that are passed on to you. Consequently, under the FAIRTAX, the bread’s shelf price will be reduced to just 77 cents. At the register, a 24% FAIRTAX will be added making the total cost to you 95.48 cents or 4.52% cheaper than a dollar. Of course, state and local taxes will still apply as they do today.
Under the FAIRTAX, we will have a whole group of New Taxpayers:
Criminals (pimps, prostitutes, gang members, mobsters etc.)
Tourists ….. since the prices will be the same/less, why not let them help.
Tax Dodgers …. those who purposefully avoid the current income tax.
Those who now work for cash.
Rich persons with high priced tax lawyers.
Illegal immigrants (only those who do not pay income taxes now.)
Under the FAIRTAX, investment in business, savings and stocks would be free of government taxes and could provide more and better profits ….. and more jobs.