August 09, 2011

FairTax is tax structure change which is neutral in tax revenue change to Fed Govt. GDP is expected to grow by 10% in first yr.

FairTax is tax structure change which is neutral in tax revenue change to Federal Government. Inclusive 22% current hidden fed. tax is replaced by 23% inclusive or 30% of price lowered by current federal tax removed from product, less the gross paycheck amount workers get, plus the prebate which is 4% of the 23% tax. making for a gain in cashflow for those of high middle income and less. Not a lie, truth in full view. Taxes no longer hidden in product equals JOBS!!! And reality of how much the Federal government has been taking is now printed out in the sales receipt.

If a widget costs a dollar today, 22% average of that price is federal tax included in the price by the employer recouping this expense. That brings the price down to $.78 . To get the 22% of tax back, sales tax has to be 30% of $.78 = $.234 in tax.

Remember that 4% of the 23% is prebate, not to be confused with current tax, but it is a removal of federal taxes on the first dollars spent on essentials. Thus the inclusive tax of 23% or sales tax of 30% is less then the present day 22% inclusive tax in domestic product, meaning it is 19% inclusive sales tax under fairtax. How is it that we can collect less % then we do from business and employees wages? All those under the table, illegals, rich with congress tax wavers bought by graft, wealth not now taxes, will be paying their fair share.

Also, the FairTax is not the instrument for reducing spending by the Federal Government, the Constitution is the tool for that.  FairTax is our fiscal tool to fix our economy so we can survive and afford our transition back top the Constitution, to the liberty and freedom of prosper.
If everyone knew all there is to know, they would not do half the things they do, including myself, therefore I must foregive them, including myself.

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