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Michael Abbott  
Sutherland Springs, TX  
April 13, 2013 1:25am
 
Once the FairTax is enacted, ALL federal taxes will be paid at the final point of consumption. As of this writing, the majority of states have a sales tax with a collection system already in place. Those who have actually read HR 25 or S 122 know that a 1/4% of taxes collected remains with the collector/business owner/service provider. Wow! Not only is the whole end of year inventory process gone, but now those in business get paid to collect the tax.

All 'underground' monies, ie; cash labor, drugs, prostitution, gambling, etc. will be paying there fair share. This part of our economy is estimated to be $1 trillion dollars. For every 10% tax rate, there's $100 billion dollars of tax revenue that was never seen before.

Also, 15.3% of the FairTax rate is for the Social Security (SS) and Medicare payments (most pay this currently either as self-employed or employees one way or another). There would be no cap on these as there is currently (cap is inflation indexed).

So, do the math...23%-15.3%= 7.7%. This rate is AFTER your first $30,000 for a family of four.
The prebate is sent to valid SS Card holders only. All of the underground economy along with tourists will NOT receive the prebate. This alone 'shores up' SS and Medicare.

US exports will not carry the FairTax rate making products more competitive overseas. Lower priced products here and abroad will mean manufacturing and other jobs greatly expanding again here in the USA. More jobs, more paychecks, more dollars to spend, creates a greater tax base.

There are alot more important issues our members need to be addressing than tax. Annually, our congress spends an average of 53% of time dealing with tax issues picking winners and losers. Which one are you?
     
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