August 31, 2013

FairTax and the poor, middle class, all classes

Today, the average embedded Federal Taxes in the price of domestic goods is about 22%.  In service price it is 29%.  The poor are paying for taxes already paid, with our money.

Under FairTax the prebate plan makes all spending on essential goods, spending that is under the ceiling of poverty, tax free.  No embedded taxes and no federal taxes.  That means spending on essential goods will drop 17% to 24%, with workers keeping their gross pay.

FairTax is a voluntary tax, meaning you only pay when you can afford to and only when buying new goods and services.  The cost of services will go down and for the most part the cost of American goods with the FairTax will remain about the same, with one difference, your only going to pay federal taxes once, not twice like we do now, from our pay and when buying.  We will also see the price of domestic goods gain a 17% advantage over imports, meaning more jobs then workers.

As FairTax kicks in the use of safety nets will dwindle to nothing with jobs for everyone.  This will help the poor gain on their personal prosperity.  Our current sharing of wealth communism structure is failing as we head for the fiscal cliff.  The poor do not want to view the landscape after we fail nor does anyone.

Poor up to the upper middle class will prosper under FairTax.  Here is a chart on what FairTax will cost you based on your spending for new goods and services, not on how much you earn:

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