Simple exercise:
1. Pull out last year’s 1040. Find the gross income box. Write down number.
2. Find tax paid number. Write that down.
3. Find fica and med paid. Write those down.
4. Add all together for total A.
Now
1. Take gross income and multiply by 9%. Write it down.
2. Consider half your income as having been spent on purchases. Multiply by 9%. Write it down.
3. Add those together for Total B.
Now.
1. Compare.
2. Which is larger?
According to the fair tax calculator my husband I and will save over $7000 in taxes vs what we pay now. (And that doesn’t count the mark-up of what we’re paying with the 35% corporate tax rate rolled into every level of production of every product that we buy.)
Can you say...
... retirement savings? :)
And how will we save?
Investing in American businesses!
Jobs. Innovation. Opportunity.
I’m trying to follow you here, xzins. If I pay 9% on gross, then spend half of my gross on retail at a 9% rate, doesn’t that give me a total of 13.5% tax paid on total gross?
Between employer and employee contribution, don’t I pay over 15% FICA & Med? Not even including federal tax?
I’m getting confused...