No more income tax?
Here is an interesting story that Jama Oliver wrote:
In case you haven’t heard, there is a bill currently in both houses of Congress that would abolish the income tax, payroll taxes, death tax, and gift tax along with doing away with the IRS!
Imagine bringing home your ENTIRE paycheck!!!
The FairTax (HR.25 in the House and S.25 in the Senate) would replace all current income taxes (including the standard income tax along with payroll, gift, and death taxes) with a national sales tax at a rate of 23% on all new goods and services. Don’t panic! Economists’ current estimate is that somewhere around 22% is already embedded into the price of goods and services due to the current tax system. Since, of course, businesses don’t pay their own taxes, but instead pass them along to the consumer, we are already paying a 22% tax on goods and services…we just don’t notice it. By doing away with the current tax system, this 22% will fall away, leaving us with the actual cost of the good (for an example of this, read up on what happened when the tax on airline tickets expired. It only took one airline dropping its prices in order to become competitive to cause the price for all airline tickets to fall…ahhh, the beauty of a free market.) So, minus the 22% embedded tax that we are currently paying, a 23% sales tax would only add 1% to the prices of goods and services. Marvelous!
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January 4th, 2006 at 9:46 am
I think we pay enough sales tax in Tennessee. We certainly do not need to pay even more to the national government for basic goods.
January 5th, 2006 at 4:34 am
Read the book, “The Fairtax Book”, by Neal Boortz. It explains how we already pay 22% in embedded taxes on goods and services due to the fact that corporations pass their income taxes on to us. So, prices wouldn’t be any differnt than they are now. And you wouldn’t be paying taxes on basic goods; only those goods that aren’t needed for survival. Not to mention the fact that you would actually be bringing home your whole paycheck. Read the book before forming an opinion.