Another benefit: the tax punishment for working hard and saving has been removed. The Fair Tax also removes the reward for one’s debt. With the Fair Tax, working families could earn and taxably spend $46,000 and still pay less in taxes than the 7.65 percent FICA tax alone under the existing income tax. Disposable income will increase with the prebate and the elimination of pay deductions for income and payroll taxes.
Consider too, with lower prices resulting from removal of hidden taxes, the increased disposable income will purchase even more with the Fair Tax.
You’re thinking, “This is just too good; it can’t possibly be true!” But it is true; in part because now tourists, those in the country illegally and the over $1 trillion underground economy (which pays no tax with the income tax system) will pay taxes just like you.
Call your representative and senators. Ask them to cosponsor the FairTax Act. Learn more at www.fairtax.org and join this nonpartisan, grassroots effort for real/true tax reform.
Glen Terrell is a resident of Arlington, Texas. You can contact him at firstname.lastname@example.org.