Your Opinion: Texas example extols Fair Tax
Wednesday, June 22, 2011
I definitely agree with Jay Ambrose, June 11, when he compared “Texas the best performing state and California the worst performing state.” He pointed out that Texas added 730,000 jobs in the last decade while California lost 600,000 jobs in the same period.
Texas has no income tax, low corporate taxes, does just enough regulating to get the job done. The legislature meets for a short period once every two years, keeps the executive branch slim and trim, and is a right-to-work state.
Researchers tell us that in 2008 Texas accounted for 70 percent of the new jobs created in America. Business rates Texas the single best state in which to operate. Just think what Texas could do if Washington would pass the Federal Fair Tax Act (HR25).
The price of our made in America products would be reduced by 55 percent on the world market by completely eliminating the IRS and all of its income taxes. (35 percent corporate income tax plus 20 percent hidden manufacturers embedded income tax). When the retailer sells these goods to his customer he will add the 23 percent Fair Tax to the sales ticket and collects the taxes the same as any ordinary sales tax is collected. We save every customer an average of 32 percent in taxes on every purchase he/she makes. Example: minus 55 percent income tax plus 23 percent Fair Tax equals 32 percent. We would also make 23 percent on all imported goods when they are sold.
All exports are wholesale transactions and are not taxed. This would really expand our export market and with this price advantage our balance of trade would make a 180 percent turnaround and our exports would double or triple in a very few years. With this rapid increase in exports, our imports would drop dramatically. Also trillions of off shore capital would return to the United States immediately and all of the businesses that the IRS has driven our of the country with its excessive taxation and compliance costs will return. They will because no other country offers a tax-free business climate.
Imagine how our troubled economy and our jobs market will skyrocket and with this huge growth in our economy we would be able to get our debt under control and look forward to a debt free nation.
If we implement the Federal Fair Tax (HR25) and the Federal Right to Work law this would reinstate the American Dream for all of our families’ future generations.