January 14, 2013

What is the difference between FairTax and Flat Tax? #FairTax #tcot #sgp #NRC #DNC

What is the difference between the FairTax and the flat tax?>
At the Federal level, the flat tax is keeping the tax structure we have that is meant for closed trade borders, as all the taxes go into the price of product and service as an expense collected by the employer. This handicaps American product to imports with an excise embedded tax of about 22% on product and 29% in the price of service.

FairTax takes out all those taxes and gives employees a gross paycheck, optimally lowing USA product about 17% and service about 24%. The expected growth of the GDP is north of 10% yearly for many years to come.

At the State level in Michigan, we are under a form of nearly a VAT. We put a lot of our taxes into the price of our Michigan product. If we we to a flat tax, it would not change much, like federally and have a sales tax.

If we got both the Federal government and State government taxes out of Michigan product, we will explode with business investment, especially with our intelligent Citizenry. We are a very diverse State for employers to bid on for our labor and when FairTax kicks in, the fact that there will be more jobs then workers will create wage inflation from employers providing incentive to stay or to come work for them. We have not had such inflation since the federal reserve came into play in 1913 keeping a labor unemployment pool over 5% to draw from.

Here is a comparison by Roger Buchholtz of Michigan FairTax on the Federal tax structures:


Tom McMillin (MI Rep)~ Is it time to discuss MIFairTax? #FairTax #tcot #migop #migov #rightmi #p2

Michigan State Representative Tom McMillin~ "is it time for a serious discussion in Lansing of FairTax in MI? it'd need 2/3 support in the legislature to put the Constitutional Amendment on the ballot...or a petition drive. Only those two avenues exist. GOP has 2/3 in the Senate, but would need a substantial amount of bipartisan support in the House."


U.S. states flirt with major tax changes

R. George Dunn
You read this
By Nanette Byrnes
CHAPEL HILL, North Carolina (Reuters) - Hopes for overhauling the federal tax system are fading in Washington, but in some state capitalstax reform experiments - some far-reaching - are fast taking shape.
Across the South and Midwest, Republicans have consolidated control of state legislatures and governorships, giving them the power to test long-debated tax ideas.
Louisiana Republican Governor Bobby Jindal, for instance, called on Thursday for ending the state's income tax and corporate taxes, with sales taxes compensating for lost revenue....(read the rest)