Fair Tax is fair, would drive economy
The mailers this week focused on the 23-percent tax on things we buy, while companies are not taxed, as though that is all there is to the Fair Tax. I expect other bogus claims to be made, because this seems to be the campaign Jim Oberweis used against Chris Lauzen not long ago.
Lauzen's problem was that, even though we provided information on what the Fair Tax bill really says, he was on the defense and Jim Oberweis outspent him about 10:1.
Subsequent mailers will probably claim the 23-percent tax is really a 30-percent tax, that it is “regressive,” that it will be easy to cheat, etc. Assuming that I can rebut such claims at the appropriate time, let's go with this now.
An extremely mendacious mailer arrived recently, saying Randy Hultgren wants a 23-percent tax, obviously meaning the Fair Tax, on gasoline, medicine and groceries, but not on “big oil,” “health insurance companies” or “Wall Street banks.”
The Fair Tax is a 23-percent inclusive tax, replacing our existing federal tax system. It eliminates the income tax system and all related taxes. Take home pay will grow 30 percent and we will no longer file tax returns. The Fair Tax will raise the same amount of revenue raised now. Social Security and Medicare will be fully funded, on an actuarially sound basis for the first time, by the Fair Tax.
The Fair Tax removes an average 25.9 percent of costs from American businesses. Competition will quickly drive retail prices down to the same profit levels. At checkout, net totals will usually be slightly less than we pay today. That 25.9 percent is an average; actual figures range from about 21 percent to well over 40 percent.
Economists say sales, production, employment and GDP will promptly begin growing at about triple the rate seen in recent decades. American goods will sell for less overseas and imports will be taxed the same as our products. Our $1.5 trillion trade deficit will turn around and jobs will stop moving overseas.
Peter G. Malone
Volunteer Fair Tax District Director
Illinois 14th Congressional District
St. Charles