Your Opinion: Fair Tax #1
Wednesday, April 13, 2011
I periodically hear from the opponents of the federal Fair Tax, (HR25-S1025) that the Fair Tax will add an additional 23 percent sales tax to all goods and services. Nothing is further from the truth. I will explain why some people are misled.
The IRS and its income tax currently has an average of 22 percent of hidden income taxes in all of our current goods and services now and they don’t want you to know this.
The process starts from the beginning. All raw materials are either mined or grown from the earth, continuing until the finished product is produced. All of the salaries and earnings of all research and development personnel, all staff and support group personnel, all of the engineers designing the equipment for all of the testing and the same process on hundreds of different designs of parts and the list goes on. Hundreds of steps for each part are made before the final assembly.
The same process is true for all medicines, medical equipment, all doctor services, all drug research and development personnel salaries even transporting of the goods. All of the income taxes that are paid on all of these salaries are added into the cost of all of these products and services and we are paying for these now. If the Fair Tax were to become law the 22 percent of hidden income taxes would be eliminated and there would no longer be income tax loopholes created in return for large political contributions from special interest groups at re-election time. All of these special interest groups would have to pay their fair share of the taxes.
The Fair Tax would fully fund the federal government at its current level including Social Security and Medicare. It would catch tax cheaters, all hidden under ground economy money, drug money, all cash transactions illegal businesses and illegal aliens. This would broaden our tax base dramatically and we would collect all of this lost revenue when this money is spent.
It also has been researched and proven that all charitable institutions would receive more money then they presently receive, because all donors would have more discretionary money to spend. The Fair Tax would create this tax free business climate that would result in giving us full employment for centuries to come and all workers would keep their full paycheck and have no other federal taxes to pay.