Yes, I was curious too. And I jumped on the net to find out what the Democrats were (actually weren't) talking about when they ran an ad in Georgia
saying that Saxby Chambliss wants to raise the sales taxes to 23% on “nearly everything you buy.”
Its true that Saxby want's to raise sales tax to 23%.
True, but only people who want to be informed will care about the context. So, great thread! Flag and star!
I knew there must be a catch to what they were feeding us, so I dug a little and found out that what they are talking about (and what they
convieniently failed to mention) is that Saxby supports the Fair Tax.
Here are the facts on the Fair Tax that I found:
The FairTax Act (HR 25, S 1025) eliminates ALL federal taxes and withholdings and replaces them with a single 23% sales tax to be collected by
existing state sales tax authorities at the retail level.
This means that:
-The Fair Tax eliminates the income tax.
-The Fair Tax eliminates Social Security, Medicare, and Medicaid
deductions from your paycheck.
- The Fair Tax eliminates the death tax.
- The Fair Tax eliminates the capitol gains tax
-The Fair Tax eliminates all the embedded taxes that are built into the
price of everything we buy.
-The Fair Tax prebates every head-of-household in the country on the
tax-liability for purchases on the bare necessities. For example:
A married couple with 3 children will receive a check from the government every month in the amount of $591.00 as reimbursement for the sales
tax they paid on bare necessities to support their family.
A single person with no children, on the other hand, will receive a monthly check in the amount of $196.00.
This means that you keep ALL of your paycheck, and your family receives a monthly check from the government to boot.
Digging further, I found that the size of your paycheck will actually INCREASE by the amount of your employer's share of your Social Security,
Medicare, and Medicare burden. In other words, if you currently earning $500.00 a week BEFORE taxes, and taking home $425.00, then under the Fair
Tax, you will take home around $550.00 a week free-and-clear - WITH NO DEDUCTIONS. Add to that the amount of your monthly pre-bate check from the
gov't, and you are taking home a minimum of $600.00/week, whereas before you were only taking home $425.00.
And the Fair Tax continues to fund Social Security, Medicare, and Medicaid as before.
It gets better:
Also, under the Fair Tax, the price of everything remains about the same. Currently, all businesses are taxed, and those taxes are built the price of
products at every stage of production. By the time that product reaches the shelves, the total embedded cost of the taxes built into that product
amounts to about, yep, you guessed it, 23%. Simply, the naive will believe that businesses pay taxes, but the reality is that businesses
taxes by passing the tax cost onto the consumer.
So the embedded taxes amounting to about 23% are eliminated thereby reducing the price of the product, and then those taxes are replaced by a simple
visible 23% national sales tax.
Finally, the Fair Tax is revenue neutral, meaning that it is designed to fund the government at its current level. It is NOT a tax cut or tax hike.
We still have to pay for our Government.
So those are the basics on the Fair Tax, and how Saxby Chambliss is going to "tax nearly everything your buy" by 23%
I won't argue the pros and cons of the Fair Tax here. I simply found out the facts relating to the Democratic ad, and I encourage every one to check
the facts that I listed for yourselves.
I simply want to point out that since we are talking about ads and context, that the Democratic ad supporting Jim Martin needs to be discussed in
detail here since it is a case-study in things contextual