Doesn’t the MI FairTax rate need to be much higher to be revenue neutral?
The proper tax rate has been carefully calculated; 9.75 percent does the job of: (1) raising the same amount of revenue as is raised by the taxes it replaces, (2) paying the universal prebate. In addition, Michigan government will save millions of dollars annually by : a) not having to administer and collect all the business taxes and the individual income tax and b) purchasing Michigan produced goods and services that will cost less because prices will no longer be inflated by embedded taxes. The economic study to determine the tax rate, done by the Hillsdale Policy group, can be viewed on our website, www.MIFairTax.org.
