So, did you take a look at your pay stub last Friday and see how much you've paid so far this year in Federal taxes? Did it upset you a bit? At the very least, under the current system don't you think we should be able to keep that money and earn interest on it before we have to hand it over at the end of the year? The FairTax fixes all of this. All that money that's being taken out of your paycheck, you get to keep it! $4,000....... $5,000..........$8,000...... $10,000......... whatever it is, you would have it IN YOUR BANK ACCOUNT RIGHT NOW!!! Ask yourself again, "What would I do with an extra $5,000 right now?"
Did you also know that businesses and corporations do not pay income taxes? "What?!? Yes they do! Corporations pay income taxes every year!" I can hear it now 'cause that's what some of you are probably saying. The reality of corporate income taxes is that YOU pay them. When you hand over $4 for a latte at Starbucks or $20,000 for a new car, a percentage of that money you give them goes towards paying their corporate income taxes. So yes, you do pay them.
Consider this scenario: What if corporations did not have to pay income taxes? Translation - what if a percentage of your $4 for your latte didn't have to go towards paying corporate income taxes? Prices would fall! In fact, research shows that prices across the board for all goods would fall about 22-23%. So now your $4 latte costs $3.08 and your $20,000 car costs $15,400! That's almost $5,000 you're saving on your new car!!! You're probably asking yourself how this happens. It's simple. If corporations (you) don't have to pay income taxes then they are undoubtedly going to do one of two things: 1. Lower their prices or 2. Invest it in making better products. Either way, prices fall.
Starbucks competes against quite a few companies, Caribou Coffee, Seattle's Best etc. If they no longer have to pay income taxes then they're going to say "Hey, we don't need to charge as much for our coffee. And if we have good quality coffee at a cheaper price than Caribou then more people will buy our coffee." Voila! Your daily coffee is cheaper. I know many of you buy Starbucks 5 days a week. If you save a dollar every day then you'll be saving $260 per year. And that's just on coffee! Imagine what you would save on everything else in addition to that!
I know I'm giving this information to you in pieces, but if I didn't then you'd have a post that's way longer than you want to read. In the end, it'll all be painfully simple. We've just got to lay some groundwork first. Here's what we've got so far:
1. The FairTax eliminates all Federal taxes and allows workers to keep 100% of their paychecks.
2. The FairTax, by eliminating Federal taxes, also eliminates corporate taxes, thus allowing businesses to lower their prices.
Is this sounding good to you? Check back next Friday for more info.
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Wouldn't the price of goods stay the same? A 23% national sales tax or "Fair Tax" would offset any price reductions from elimination of corporate taxes.
ReplyDeleteI'm getting there. Gotta break it all down first. Folks need to understand that the price of goods would fall first and offset the amount they would pay in taxes.
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