Subject: FairTax Support to Replace Federal Taxes
Comment: The FairTax will:
Fund Social Security and Medicare as a Pay-as-you-go “safety net” for all American Citizens without further national debt to provide transition to Individual Accounts.
Increase the American Economy by an estimated 15% in the 1st year alone.
Bring millions of jobs back to the United States when our companies and products can compete on even ground with foreign countries that do not have corporate tax burdens hidden in the retail price of all domestic products.
Make our products price competitive with foreign manufactured goods domestically and when exported.
Has a “progressive” effective tax rate since the “prebate” will insure that the working poor at or below the National Poverty Level will pay NO federal tax. The middle class will pay a moderate rate after deducting the “prebate”. and the wealthy will pay the highest rate after deducting the “prebate” when they purchase high dollar and luxury items.
The working poor will have a pay raise due to no longer having the burden of Payroll Taxes reducing their take home pay.
The middle class will have a pay raise due to no longer having Federal Income Taxes and Payroll Taxes reducing their take home pay.
The working poor and middle class will have increased spendable income that they can use to purchase the Health Insurance that they currently cannot afford due to the Income and Payroll Tax reductions of their take home pay.
The working poor and middle class will also have increased income that they can save and invest toward their future retirement.
The Home Mortgage Interest deduction is only used by a small amount of citizens since the Interest and other deductions must total above the Standard Rate Deduction to even be used. This usually requires a taxpayer to have a moderately expensive house or high interest rates to use the deduction. The FairTax provides the citizen the ability to pay their Principal/Interest/Escrow with “untaxed” dollars instead of only getting a small percentage of high interest amounts deducted from their taxable income.
The Charitable Contribution Deduction is much the same as the Home Mortgage Interest deduction. Americans donate to Charities because they support a particular cause not for a tax deduction that can only be used if they are above the Standard Rate Deduction. Americans will have more money in their pockets for worthy causes since every dollar donated will be untaxed, not just a small percent reduction when they have donated a large sum.
The FairTax positively addresses many fiscal areas of our National Economy, Social Security, Medicare, Job growth, untaxed underground activities, and many more and must be the REPLACEMENT for a Byzantine system that has been continuously modified for over 90 years and NO ONE can understand and comply with.