Folks- Bare with me a second. Poverty level for a couple with two children right now is $27,000. Let's assume the family spends every dime they
earn, buying the bare essentials to live on at the poverty level (medicine, food, heat, shelter...). After HR25 comes, roughly $6300 (23 percent) of
all the money they paid for this modest living would go to pay Uncle Sam. You're right, the land lord would charge the HR25 tax rate for that retail
good or service.
Aaah,,,, but let's suppose every couple with two children, regardless of how much they earn and how much they spend, gets back at the end of each
year, that exact same $6300. That is, the poverty family would be completely reimbursed the entire ammount they paid out in consumption tax to Uncle
Sam. They'd be totally "untaxed".
So what about a "rich" couple with two children with incomes and spending habits of say 100,000? They'd pay in that same year $23,000 to Uncle Sam
for all those HR25 taxes, right? But wait! The rich family would ONLY get back the same lousy little $6300 in the "prebate" that the poverty
family gets back, so after all the dust settles, the rich family would pay for that year about $23,000 minus $6300, or a net expense to Uncle Sam of
$16,700. This tax burden the rich family gives to Uncle Sam amounts to $16,700 divided by $100,000 or 16 percent of their income, which we assume
they completely spend.
So it boils down to: Poor people pay nothing. $100,000 income couples pay $16 percent.
SUPER rich would be taxed the entire 23 percent. The richer (the more they spend), the closer to the 23 percent their "after the dust settles" tax
percentage is. Isn't that progressive? The rich pay a higher percentage than the poor?
Have you gone to FairTax.org yet? See:
While I got the floor, I suppose you'll come back with: Well... the filthy rich don't always spend all they make. What if they only spend a little
and live at the poverty level? Huh? What then?
Answer: Then why would you be jealous of them? Whatever they did with the difference, it's of no concern to you or me. Did they give it to charity?
Did they invest it in a factory that provides jobs to poor people? Did they send children to college? More power to them!
We need to stop punishing people for working. HR25 makes everyone a winner (except tax lawyers and H&R Block employees). Granted, you young kids
will be bigger winners than us old farts (I transfered large amounts to a Roth IRA several years ago, before I knew), but I still want it to happen.
Prices will NOT rise, and spending power will NOT drop. Oh, imported items will rise in price, sorry. I forgot about that. Companies will return to
the US, since there will no longer be a tax break for headquartering overseas.
How about watching some videos? Go to YouTube.com and search for FairTax. Heck, 65 representatives have co-signed the bill. Even a Democratic
presidential candidate (Mike Gravel) (or has he withdrawn yet?) agrees with the HR25 plan.
And to think you guys are alive now to see it all happen. :-)