So, you think a 28% sales tax is OK? You think it’s going to do away with our income tax and other taxes we pay to the Federal Government?
I think you have been lead astray by the “smoke and mirrors” placed before you. Stop and think...how about the horrendous Socical Security tax at 8.4% and the medicare tax of 2.9% too? You have to remember that the employers matches the tax on your behalf and the system is designed so that you have no idea that they are. I know, I’m an employer. So if you hear the lie that your Social Security tax is only 4.2% and your medicare is only 1.45%, you have been fooled. It is a full 12.6% based upon your GROSS UNADJUSTED EARNED INCOME!
Now add the wonderful 28% sales tax to the even more ominous and wonderful Social Security taxes and you have a tax rate of 40.6% of your income. THAT’S JUST WONDERFUL! A note to employees: The money your employers hides from you to pay the Social Security taxes is YOURS! Not his! You simply don’t see it due to the “smoke and mirrors” placed before you by the politicians of past.
Until we develop a tax system in which EVERYONE (and I mean EVERYONE) pays the same rate of tax, regardless to income or financial situation...with NO EXEMPTIONS what-so-ever, AND do away with the Social Security taxes, we will never have a workable and fair tax system.
What they don’t want you to know is that a sales tax rate of an estimated 15% would be enough to pay all governmental costs if EVERYONE PAID THEIR TAX AT THE SAME RATE-———Everyone!
YOU need to follow the link below and READ before you further embarrass yourself!
The Fair Tax does away with the payroll tax and the IRS. It also includes a monthly “pre-bate” up to the poverty line to keep it from being oppressive to the poor.
The Fair Tax does not do away with State and local taxes. But remember that the Fair Tax is only on things you purchase not on every dime you make. It is also only on new items. If you want to avoid the tax on an auto then buy a 1 year old car and you pay no tax. Same deal on a home or anything else. This is not a VAT tax. Items are only taxed one time when they are sold new.
The general premise of the Fair Tax is that since Companies currently embed about 22% into their product prices to cover taxes they will through competition lower the prices of products about that much shortly after the Fair Tax goes into effect so in the end prices will come down and with the tax you will end up not paying much more than you do right now.