FairTax “untaxes” the poor and lowers the middle class tax burden while allowing every wage earner to take home paychecks without federal withholding or payroll taxes deducted. The goal of the FairTax is to stimulate the economy on a whole rather than a portion of our population.
According to the FairTax website, The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including:
- A progressive national retail sales tax.
- A prebate to ensure no American pays federal taxes on spending up to the poverty level.
- Dollar for dollar federal revenue neutrality.
- Repeal of the 16th Amendment through companion legislation.
Some experts do not think the FairTax program will work, though others think it will only work for the lower class. One business benefit is that there would no longer be a “small business tax” but how will this affect your business and your customers that buy from you?
Do you think the FairTax would provide your customers with extra money that they would then use to purchase from you or pay bills they owe you with? Keep your eye on this story as it unfolds because depending on how it ends, you may end up able to collect more money from the customers that owe you money and are having a hard time paying you now in our current tax structure.
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