Please consider the following when analyzing the proposed FairTax (HR 2525) for tax reform:
1. There will be no payroll deductions from one's paycheck. Neither for Income tax nor for FICA.
As you know, the Soc. Sec./Medicare payroll deduction tax is the most regressive of all. It starts at dollar one and continues to $80,000+.
See this website: PAYCHECK!
2. A Study by Dr. Dale Jorgenson, Head of Harvard Business School of Economics indicates that prices of goods and services will drop from 20%-30% (avg 22%) after the FairTax is enacted. This is the amount of Income Taxes (and compliance costs) now 'hidden' in the price to cover the producer's Income Tax (and compliance costs).
3. The Family Consumption Allowance (FCA) provides for the 'necessities of life' to be acquired 'tax-free.'
Rebate via: Family Consumption Allowance!
Cliff Cofer - State Director, AFFT Iowa Volunteer Team
P.S. I have a number of websites dealing with various aspects of the proposed FairTax that you may want to visit: They are all Linked to this site: FairTax Facts!
1. Demonstrates that 23% is the correct number to generate the $1.7T necessary to replace the revenue generated by the taxes it is proposed to replace.
2. A study that shows the projected NRST tax burden for each income quintile so that I can compare it to the current distribution of tax burden reported by the Joint Committee on Taxation on page three of this JCT Study