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Section A: General News


Letter: Poor, middle class better off with FairTax




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May 15, 2013 | 1,005 views | Post a comment

Editor:

Some clarification of the FairTax is in order. I have read from several forums where people state the poor and middle class will suffer under FairTax. The poor and middle class are not put into hardship with this transparent tax. In fact, these two groups are better off with FairTax as they will have more spending money and can choose when to pay taxes. How would these groups make out under FairTax?

First, by having all the money in their paycheck. Second, the Prebate provides money back up to the poverty level for the person and family.

The Prebate is based on the Department of Health and Human Services. For a family of four, the prebate amount is $7,135 or $595 monthly.

Thus, the family has their full paycheck plus $595 monthly for new products and services. This Prebate money is money to offset the tax on basic needs, such as food and new clothes. Remember, used products are not taxed. Everyone would receive the Prebate based on family size and not income.

The FairTax removes all federal income, payroll, self-employment, alternative minimum, capital gains, estate, gift, and corporate taxes.

Also, the FairTax rate is roughly equal to the Combined Federal Tax Rate of 14.91 percent, Old Age Survivors and Disability Insurance, also known as Social Security, rate of 6.31 percent, and Hospital Insurance, or Medicare, rate of 1.78 percent.

Therefore, products should cost about the same as they do now. The prices may go down as the companies realize savings by not paying the “old” business taxes, mentioned above. In addition, the FairTax would generate revenue from the underground economies while stimulating the overall economy.

Please contact your representatives, telling them you want FairTax. For more information, and to check this information out, go to http://www.fairtax.org, or search for FairTax in your favorite search engine.

DR. WALTER WESLEY SNYDER V

Pottstown, Pa.
 

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