IS IT FAIR FOR RICH PEOPLE TO GET THE SAME FAIRTAX REBATE FROM THE FEDERAL GOVERNMENT AS THE POOREST PERSON IN AMERICA?
Lets look at a billionaire under the FairTax if he spends $10,000,000 he will pay a tax of $2,300,000 and get a rebate of $2,440 (assuming he is married and has no children). His effective tax rate will be 22.98 percent. Lets look at a middle-income married couple, under the FairTax, with no children if they spend $30,000 they will pay $4,404 net of their rebate for an effective tax rate of 14.7 percent. The effective tax rate increases as spending increases, but will never exceed 23 percent! However, this same couple, if they earn $30,000 in wages today under the income tax, would pay $2,295 in payroll taxes and$2,674 in income taxes for a total of $4,969 in taxes (16.6 percent). In addition, their employer would pay another $2,295 in payroll taxes. Most economists think that the employer payroll tax is actually borne by employees in the form of lower wages. Looked at in this way, this couple is paying $7,264 (24.2 percent) in taxes today, which doesnt even include the hidden taxes th
Related Questions
- Is it fair for rich people to get the exact same FairTax prebate from the federal government as the poorest person in America?
- Is it fair for rich people to get the exact same FairTax rebate from the federal government as the poorest person in America?
- IS IT FAIR FOR RICH PEOPLE TO GET THE SAME FAIRTAX REBATE FROM THE FEDERAL GOVERNMENT AS THE POOREST PERSON IN AMERICA?
