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Your Opinion: Federal Fair Tax will boost U.S. economy

Your Opinion: Federal Fair Tax will boost U.S. economy

April 5th, 2011 by Gilbert Schanzmeyer, Jefferson City in News

Dear Editor:

Some of the comments I receive on my letters to the editor that I have written are sometimes a little amusing to me. I guess I am not making myself clear or maybe we are not on the same page.

First, I want to explain that the bill that Missouri is pushing is the Missouri Jobs and Prosperity Act - HRJ56 &71. This is not the Fair Tax. The Missouri bill is real important and it is a bill designed to make Missouri more competitive with all of the other 49 states.

I am more concerned about the federal Fair Tax Act of 2009 (HR25.) If the Fair Tax passes, all the jobs currently being forced to leave the U.S. due to excessive IRS taxation (35 percent corporate income tax plus 22 percent embedded/hidden/value added tax,) will return to the U.S. With the elimination of the IRS and all of its taxes, the price of our goods and services will be reduced 57 percent which will make them cheaper than those produced by the third world countries that work for $2 a day and we maintain our current wage scale and standard of living.

Remember we all compete in this same global market and whoever can manufacture the best product for less money comes out the winner. This is the most important basic fundamental of a successful business protocol.

Just imagine how our troubled economy and jobs market will skyrocket when all of the Fortune 500 companies relocate back here in the United States, and they will because no other country offers a tax free business climate.

Everyone should download a copy of the Fair Tax (HR25) read it several times and study it thoroughly. It is a wonderful piece of legislation that is very well researched and supported by many institutions with excellent results. The Beacon Hill Institute at Suffolk University in Boston even provides all of the formulas used in the economic projection in the charts and graphs showing the percent of increase of our economy each year for the next 25 years. They are very impressive. Stay tuned.