GIVING YOUR SELF MORE INCOME!!!!
There is a bill in congress right now with many co-signers that will pass as soon as enough of us add our support and ask them to pass the bill. Read along and I will tell you how this bill is going to increase your income dramatically.
A group of successful business men have put together twenty million dollars and hired economists and accountants to make a study and they have discovered some very interesting things about our income tax that will help you. In fact, if they can implement their findings your income will increase, much of the IRS staff will be absorbed into other duties, social security and even Medicaid will be fully funded. As a bonus our economy will expand as money from all over the world comes back to the USA for its tax advantages.
What this hired brain trust found was that in each product we buy, the price is increased by the cost of taxes paid by each participant of producing the product. Corporate income taxes, workers share of taxes paid by the companies, income taxes paid by truckers and other contract workers. The amount of tax paid varies by product but if you buy something like a VCR for $100.00 an average of $22.00 is going to pay taxes. So the brain trust says stop taxes so the price will drop to $78.00 and then add back in $23.00 as a built in consumption or sales tax and now the price will still be about $100.00 but now there is a big difference.
Look at your last pay check and note the amount that is deducted for taxes and social security. If that amount were paid to you instead of being deducted see how much your taxes will increase! You see, your taxes will be paid by a consumption or sales tax that replaces the corporate taxes passed on to you during the preparation of the items you buy.
This will eliminate wasted dollars spent complying with or avoiding taxes, costs that are passed on to you in the purchase price. The consumption tax will be on every new item you buy and people who never pay taxes will be helping you each time they buy something.
That $100 VCR is still going to cost you $100 or maybe $101 but your paycheck will increase by the amount of taxes you had deducted for income and Social Security and Medicare!
PLEASE READ THESE LAST TWO PARAGRAPHS AGAIN. IT IS IMPORTANT TO UNDERSTAND THIS CONCEPT.
And that is not all the increase in income you will receive.
All heads of households will receive a payment each month to advance to them the cost of the consumption tax for the basic necessities of that household for that month.
Explain please: Let’s say you are a married couple and you have two children. At this time, the government has decided it will cost you $25,660 for your basic household requirements. If someone earned or spent below that amount it is defined as below the poverty level.
Don’t worry about the name, it is just the way to establish a figure to say that all income at or below that amount is required to give your family the basics. It has then been decided that a family should not pay sales tax on that amount. It would be unfair and cause a burden in taxation for lower income people. So the bill before congress requires the government to refund you in advance the tax on that amount which is $491.82
a month for a family of 4. It is called a prebate. Did you look at the withholding from your payroll stub? Let’s say you are having about $350 taken out for taxes: Add to that the $492 prebate and your income will increase almost $850 a month.
When was the last time your income went up about $10,000 per year? The fair tax has been recognized as the fairest treatment for lower income people. (Even if you are not working your income will increase by the amount of the prebate).
Now let us examine this big increase. Most of that, the $492 is intended to go for the consumption or sales tax. But remember the paragraphs above; when you get the corporate taxes that are passed on to you out of the sales price the final price you pay at the cash register will be almost identical to the price you paid before so that prebate of $492 plus taxes saved for a total of $850 will really be a net increase in the money in your pocket. I charted incomes before and after the change and I discovered it is a huge increase in take home pay or cash in your pocket.
Do you know what happens when more consumers have more to spend? More of you can qualify for and afford to buy your own house so real estate will boom. With more money many of you will increase consumption so the economy will increase. Some of you will save some of that money so with increased savings in banks mortgage rates will decline and more of you can afford mortgages which will also help the real estate market.
Without income taxes and taxes on savings more people will take their savings out of foreign deposits designed to skirt our taxes and deposit that money here in US banks. In fact our tax treatment for investment and savings will suddenly become the best or one of the best in the world so lots of money will flow into our banks. This will reduce mortgage rates, encourage investment and growth for our country and you will be much better off. There will be better jobs, a higher demand for your work and you will be very happy.
You can also always buy used items and save paying a consumption tax, it is OK. There will be a lot more spending and lots of taxes will be paid in just from the consumption of a more affluent America.
Tourists will come and they will help pay our taxes through their consumption. People who obtained money by various means whether it was a gift or it was stolen or it was for some unreported sales will now pay for their share of your taxes when they spend their money.
You do not have to worry about Social Security or Medicare any more; it will be funded and is provided for.
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 am showing 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 showing 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 you realize that your family will save also so you could add $100,000 for each child you have.
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 each year 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 talk show host 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