Fair Tax

Have you ever heard anyone say they want a fair tax? Well it might have been me because I do. I am an advocate for the fair tax and I have the following reasons to support my stance.

When you do your tax return, have you noticed just how much tax you are paying? Have you ever thought what you could do if you had all the money you actually earned? Maybe you're trying to save for a house or for a car. Well, if we had a fair tax you would get all of the money you earned and you'd be able to save as much as you wanted. The reason is because you only pay taxes on what you buy. So if you want that stereo, but don't really need it, then save your money and you won't pay tax. Just cut back on your spending money and you'll have much more to save.

People are afraid of a fair tax because they don't want to end up paying $2 for a candy bar. They prefer having their company take the money out before they ever get it so they don't have to worry about it. Well, a candy bar won't cost $2. You won't be paying 50% tax on everything you buy. The simple reason is that everyone will be paying taxes so the government will be able to generate the same amount of revenue with you paying less tax! That is because all the drug dealers, illegal aliens, and other people who deal in cash will now be paying taxes. With the current system they are able to avoid paying as much tax by not reporting their income, however, they still purchase candy bars. So as soon as they buy that candy bar they are being taxed, and that formerly lost revenue has now become apart of the pot everyone else has been putting money into all these years.

Bottom line is sales tax would be about 23% with the fair tax. So when you purchase a $20,000 car it will now be $24,600. While that is a lot of tax think about it this way: If you make $30,000/year then you probably bring home about $2,100/month. With the fair tax you'd bring home $2,500. So in the current system where that car is $21,400, your monthly note for 60 months - 8% interest is $433. With the fair tax your note would be $498. So you're bringing home $400 more and only paying $65 more on your note. Of course, you will have to pay for other items as well but the point is you control how much tax you pay by how much you spend.

The rich will buy more and pay more taxes. The poor will buy less and pay less taxes. And we will all pay less because those who avoided taxes by dealing in cash or offshore bank accounts will now be paying into the system. No more dealing with accountants and confusing tax codes. You go to the store, buy as much or as little as you want and pay the tax there.

JB