THE FAIR TAX PART 3
You should approach the Fair Tax as an investment. If you are going to learn about this powerful and exciting proposed change in the taxing system you will be investing time and you might spend a few dollars attending rallies or even donating.
A little time is well invested in reading the enjoyable Boortz-Linder “The Fair Tax Book”. This is vital because there are a few special interest groups who want to stop the program for their own financial benefit. They are inclined to feed you erroneous information. When you do your own research you will learn the truth.
This reading time is an investment. You could do other things with your time that would bring you a return and your mail is probably full of offers.
When you invest you might consider a safe bank CD at 3% and if you find a return at 5-6% you will think it is a good return. 10% would be excellent, if you thought you could get 25% you would be very, very happy and I want to show you an investment that will exceed anything you have ever done. Normally, if someone promised a high return I would say run to the nearest exit, but when the Fair Tax is passed you have great potential. Do not let this opportunity pass by.
I am going to show you that time worth about $100 and invested in the Fair Tax will return over $100,000 to you in a little over 10 years. This return will be expanded when applied to your family.
I have already told you about the pay raise you will receive; it could be $7,500 to $10,000 a year or more. Remember that each head of household receives the prebate so your children will also receive the benefit when they set up their own households so the return on investment expands as your family grows.
In addition we are going to redirect billions of wasted dollars toward productive gains for you and the results are expected to be amazing. American families and businesses could be wasting as much as $600 billion in trying to comply with or legally avoid the current tax code. The real secret is that businesses do not pay any of the costs of the taxes. Business does not exist without a reasonable profit, all other expenses; including taxes are passed on to you as part of the selling price of the product. You are paying this cost.
When the fair Tax is passed the businesses will not have any more taxes to pass to you. In fact, the magic of the program is that you will pay about the same price for products but the portion that went for business expenses related to taxes will now be used to pay our federal taxes. The economists who figured that out are heroes!
There is also about $1 trillion dollars in illegal transactions that take place each year. These include all illegal sales of stolen valuables, drugs, and other items. With the Fair Tax these profits will be taxed when the people involved spend their profits on consumer items. Purchases such as big cars, yachts, new homes, jewelry and so on. Part of their conspicuous consumption will be given to support the government, reduce your taxes and help pay for your Social Security and Medicare.
The same is true of visitors and tourists from other countries. They will help pay for your government and its programs.
Our present tax code has many discouraging elements. If you earn a significant amount of money or you own a corporation you are pressured by high tax rates on savings to find off-shore locations where you can save thousands of dollars a year. This takes money out of our domestic banks where it helps reduce interest rates and benefits the economy of the country where it is placed. With taxes eliminated it will be cheaper, safer and a lot more convenient for large savings funds to be kept in a reliable domestic banking system. With extra money to invest, competition will drive down interest rates you pay on your house and on credit cards. Just make a quick estimate of what you think your average credit card balance is for any year. If cheaper money caused lower interest rates you could save 10% or more. So take your average credit card balance and add 10% of that amount to your return on your investment in the Fair Tax. While you are at it add 2-3% of your mortgage balance to that return also.
We will eliminate the federal death tax and federal taxes on savings and there is a list provided below that will describe other taxes that discourage working , investing and the economy.
Because of no federal taxes our domestic products will be more competitive in the world trade without the taxes increasing their cost. Increased US sales will help increase our economy which will increase worker demand making your salary increase. At the same time, foreign goods will be sold with the embedded tax that will help reduce their advantage while helping to pay the costs of our government.
There are many professionals now working on tax code compliance and avoidance. This wonderful brain power will be concentrated on how to improve the efficiency of business, how best to invest the money and how best to improve products and customer service in order to help their companies earn their share of the expanding economy.
Your Government can concentrate on issues that are important to citizens rather than negotiating over who gets certain tax benefits.
I have given you some high lights of how you benefit from supporting the fair tax. If you would like more detail, here is a place to go. There are many more benefits that I have not explained.
Deborah maintains this site with 50 reasons why she supports the Fair Tax. These were provided by Ken Van Dellen. Deborah will also give you links to the various Fair Tax sites. Great job, Deborah. Thank you.
We should also thank the fine Houston business executives who invested the time and money to hire experts to develop the Fair Tax solution. http://www.fairtax.org Thanks to Congressman John Linder for his untiring efforts to prepare the act, promote it and get many co-sponsors and finally to Neil Boortz who has taken the time to learn the system and educate us.
Now, it is up to you and me to spread the word. We need to increase the numbers in our support group. If this article helps, please copy it and distribute it.
Thank you for your interest.
Stewart “Stew” Rusby
When I find worthy causes or develop what might be a solution I invite you to join me in searching for a silver bullet solution to this and other problems at http://divinebullet.blogspot.com