| A Trip To The Grocery Store, Before and After the FairTax is Enacted. |
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Old Price Meats $ 40.00 Veggies $ 20.00 Fruits $ 20.00 Bakery $ 10.00 Misc. $ 10.00 ------------------------ sub-total $ 100.00 - - - - - Total $ 100.00 |
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New Price Meats $ 31.20 Veggies $ 15.60 Fruits $ 15.60 Bakery $ 7.80 Misc. $ 7.80 ------------------------- sub-total $ 78.00 FairTax $ 23.30 Total $ 101.30 |
| * Neato! And I get the Family Consumption Allowance too? Yep!
And NO PAYCHECK! deductions, either? You got it! I like it! I like it! [Social Security & Medicare are fully funded under the FairTax plan.]
Can I help get the FairTax enacted? Yep, sign the PETITION! and ask two others to sign it, too! |
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Notes:[a] Harvard's Dr. Dale Jorgenson's Study of the proposed FairTax projected a 20%-30% price drop, at retail (depending on the product), if the FairTax were enacted.
The above Old Price/New Price comparison uses an average of 22% as the price drop in this analysis.
[b] The FairTax, on a 'tax INclusive' basis = 23% of total price. Thus, in the above analysis, the FairTax at 23% x $101.30 = $23.30
[c] On a 'tax EXclusive' basis it's 29.87% x $78.00 = $23.30
Thus, $23.30 + $78.00 = $101.30. Either way (inclusive or exclusive) the FairTax is the same dollar amount.[d] To compare the FairTax to Income Tax on an 'apples-to-apples' basis, one must use the inclusive format, because people always refer to Income Tax as a 'Percent of Income,' i.e. an inclusive basis.
See this Chart for a comparison of these two methods of taxation... Income Tax vs FairTax ...both expressed on an inclusive basis.
[e] In terms of maximum rates, here's the comparison...
INclusive EXclusive
The FairTax: 23.00% 29.87%
Income Tax: 39.60% 65.56%
| When the FairTax is enacted there will be no more paycheck deductions for Social Security & Medicare. Those programs will be fully funded from FairTax proceeds. Visit PAYCHECK! and FAMILY CONSUMPTION ALLOWANCE! and SUMMARY! for more good news! |
| How does this grab ya'? When the FairTax is enacted, you'll File no more Tax Returns and there'll be no more IRS audits! April 15th will be just another nice SPRING Day! Hey, I like it! |
| How about helping the FairTax cause? Sign the Petition showing your support! Better yet... sign the Petition a-n-d join Americans For Fair Taxation (AFFT), the "grassroots" volunteers (now 600,000+ members/supporters strong) and help recruit new members to advocate the FairTax!
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Dear fellow taxpayer:
Math question for the day! If today, two folks signed the FairTax PETITION and they EACH lined-up two more to sign tomorrow and they EACH got two more to sign on the 3rd day, etc., etc. for 26 straight days, how many signatures would be on the Petition at the end of the 26th day? The answer.....
With millions of taxpayers/voters signatures on the PETITION, it will motivate members of Congress and the Senate to proceed post-haste towards enactment of the FairTax (S/HR 25).
Stay tuned. The best is yet to come! ...I'm ready! ...I'm ready! ...bring it on! Onward & Upward! Cliff Cofer - AFFT Volunteer State Director for Iowa |