15. It encourages work by letting workers keep 100% of their earnings and giving a rebate, in addition, making the notion that “the more you work, the more money you have”, a reality, unlike the current system where welfare is lost when you go to work, so the first dollars earned after taxes just offset what a welfare recipient is currently receiving in assistance, so working is perceived as disadvantageous.
It sounds good, but if welfare is not based on income, what will it be based on under the fair tax? I will give you a hint, it will still be based on income and they will still reduce their aid just like they do today. There is no welfare reform in this bill, the system will work as it does today with the same real disadvantage of going to work. Just another bogus claim unfortunately.
Without FICA to pay, most states, counties, municipalities, and school districts will see a large increase in their state budget revenues, additionally lowering the overall tax burden (State & Federal) for most Americans.Yeah, the states wouldn't be paying 7.65% FICA, they would be paying 29.87% FairTax on their employee's wages! [For you FairTaxers, 29.87% is larger than 7.65%.]