That depends entirely on how you are currently paid. My brother's business, for example, pays his employees as contracted labor at a set rate. He does this to limit mandates and red tape from the government being imposed on him. The individuals are responsible for their tax burden, and the Fair Tax would eliminate that burden from them.
I have my own concerns about how the monthly stipend the Fair Tax advocates would be abused by the class warfare crowd, but increased take home pay is possible for many.
The individuals are responsible for their tax burden, and the Fair Tax would eliminate that burden from them.If the individuals are performing a service their gross income could be subject to the 23% fairtax....then they'd pay tax again when they spend what's left.
In the mean time the IRS has strict requirements for determining independent contractors from employees...tell your brother to be careful.
No, no increase in take home pay is possible, for the fairtax math to work. But thats the Catch 22.
If people increase their take home pay — then its not the Fairtax plan. Its some other go-round. Fairtax plan is for workers do voluntarily give up 30% of their pay, and then pay the high sales taxes with what they have left.
Thats the only way prices will go down. So —prices won’t go down. People won’t give up big chunk of their gross pay for that deal.
Fairtax MATH depend on all the workers donating their money to the employer. Whatever money workers USED to pay in taxes, they have to pay to the employer for the math to work. Otherwise, the math doesnt work.
This whole idea of lowering prices is a figment — its not even in HR25. It has nothing to do with HR 25. Employers could do this now — or later. Workers could do this now — or later. Nothing to do with HR 25. Its blowing smoke