First of all, it is true that prices on consumer goods and services would go up significantly because they would not only have to make up for corporate income tax but also individual income tax. This undeniable rise in prices would encourage people to not spend their money. True, putting your money in the bank is reinvestment, but we can not diversify our economy this way. Our economy would become dependant on one or two sectors. Now we have to recognize what is bad about an undiversified economy. We would be dependant on foreign nations to supply us with the goods and services that we could not supply. Furthermore, we would lose all deductions. The government uses this system of deductions to encourage growth in failing sectors of the economy when needed so that we can be sure that America's economy will be strong on all levels.
There is all the incentive in the world to reinvest your money with the Fair Tax Act. What are you going to do with all your extra money, put it under your mattress? Even if you put it in a bank, it gets invested back into the economy.
Second, Prices are already inflated with corporate tax. If you remove the corporate income tax, prices will fall. You don’t really think the cost of tax is not passed on to consumers do you? Third, there is already an infrastructure set up to collect sales tax in every state, it would be very easy to implement this. Finally, business from around the world would seek to set up shop in America to get away from income taxes. This would boost the economy to unimaginable levels. Finally, Finally, If the IRS can’t even guarantee they know all the tax laws, why are we paying them billions of dollars a year in taxes only to pay billions of dollars a year to someone else to try to comply with them?
Give me the Fair Tax Act or give me Death.
Updated: 2005-03-03 07:45:15
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