Your Opinion: Distinguish state from federal Fair
Saturday, April 23, 2011
The national Fair Tax (HR25 SB13) and the Missouri Jobs and Prosperity Act (HJR8) are two different proposals, each with very specific actions and goals. Combining commentary on both without identifying which bill is being referenced is misleading.
A worthy bill spells out the implementation process rather than just listing its goals. HR25 the Fair Tax bill explains exactly how every point of the bill will be instituted. The bill is available at www.fairtax.org.
The Fair Tax is backed by research from some of the best tax economics minds in the country, including leading researchers from Boston University, Harvard University, MIT, National Bureau of Economic Research, Rice University, and Stanford University, the FairTax is one of the most thoroughly studied public policy issues ever introduced in Congress.
The exemptions were researched. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit. Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs of about 22 cents for every dollar of ticket-cost.
Dr. Lawrence Kotlokof in Comparing Average and Marginal Tax Rates Under the Fair Tax and the Current System of Federal Taxation states, “compared to the current federal tax system, the Fair Tax would significantly reduce marginal taxes on work, dramatically reduce marginal taxes on saving and substantially lower overall tax burdens on current and future workers.” This study shows that regardless of age, marital status or income, all taxpayers are better off in the Fair Tax future. (www.fairtax.org/PDF/Comparing AverageandMarginalTaxRates-110206.pdf_
Research HB25 rather than relying on others’ opinion.