Reply #196: That is just not true [View All]

Big business do not pay taxes now. They pass along the costs to the consumer, some estimates say that 22% of the cost of goods sold is corporate taxes. If you drop that burden prices will fall. This lower cost of goods will offset the national sales tax. Plus with no Income deductions, entrepreneurs will have more funds to start business with or no tax burden for established small business will offset the capital deduction realized as income. I have help run a small business for many years and tax compliance costs are ridiculous and more stringent on small businesses than they are on Large corporations. FairTax* ends the economic stranglehold by big business on small business and foster competitiveness.

What does Bill Gates spend in a year, 100 million conservatively? That is 2.3 mill in taxes annually under the FairTax*. I doubt seriously he pays that much now. When he dies, do you think Uncle Sam will get any? Not if he leaves it to his wife. Under a FairTax the gov. would get 23% every time she buys a new car, house, boat, etc....

Billy bob will not pay taxes under the FairTax* plan. He will receive a rebate for all taxes spent up the the poverty line.

Example:

Bill Bob spends 25,000(poverty line) a year and has a wife and 2 kids. His rebate would be equal to 25,000 X 23% = 5,750 in pre-bate. Divide that by 12 and Billy Bob will get $479 on the first of the month every month to offset his taxes. He will not pay taxes, not SS taxes or income taxes.

As far as Quicken goes, your just paying Inuit's taxes for them.


*FairTax is H.R. 25 submitted to the House in 2003