How does the Fair Tax work?

The TV said those under $40,000 annual income will be hurt by the new proposed fair tax. Frankly they are lying, actually trying to keep poor people poor so they will vote for entitlement programs keeping you from doing the math. I am one of those “under $40,000” people that you will hear the mainstream media talk about. What is the Fair Tax (Flat Tax) basically it’s a sales tax. The Fair Tax is a Powerful sales tax because it eliminates all other federal taxes. Social Security, Federal Income, Everything; simply put you will not be taxed when you earn money anymore. You will pay a 23% sales tax on all goods that you buy. I have read a bunch of blogs smashing on this and I can tell you that they can’t do the math, they don’t think ahead, half of them are talking like it’s a flat income tax, which was proposed 10 years ago. It's NOT a Flat tax. It's a consumption tax. That means no more tax liens against the elderlies homes, No more taxing a kid because his parents just died, leaving memories instead of tax debt.

So why is it called the “Fair Tax” well its not because someone needed a new buzzword, it is because the fair tax has two major features. EVERYONE in the country pays the 23% on every purchase at the time of consumption. (Remember when the constitution said all men are created equal, Oh yeah it still does, maybe we should tax them equally then.) Each Household in the country gets a $4000+ refund every year regardless of income level. You save your money, you keep all of it, You make money on your savings you keep ALL OF IT. Imagine keeping what you own. I believe we orginally called that the 4th Amendment. How will you survive by not sharing your privacy with the federal government with every dollar you make. Every extra hour you work is now working for you directly and not Uncle Sam.

So what else does this Tax change effect.
OVERTIME, as any true working stiff knows the congress in this country loves to take your overtime money before you get it. You work 20 extra hours and take home 5 hours worth of pay. Seemed fair- to them. Not under this system you work more, you get more. Rewarding hard work that idea is so crazy it just might work. America is the hardest working country in the world. It is estimated that this system is going to influx wealth in the hardest working Americans at such a rate that the labor importation bills will be a requirement, not an arguement, to keep America’s production up to the level that keeps us the power of the world. Just imagine working harder making more and paying down your credit cards and paying off your bills with the extra money. So its expected that the American worker who works more than 15 hours of overtime per week will reduce their personal debt by 14% the first year. That is good for the economy. Bad for Bankers, But good your Americans.

While the average American that makes under $40,000 will pay $2000+ less in taxes under this system it is not true that this will not increase the deficient. Wealthier Americans will invest more into the stocks and business ventures without a penalty in doing so. This will increase the value of your 401k at a faster rate. More Americans will be able to retire early or on time opening up existing high paying jobs to the next generation. Us lowly paid Americans will have more money to invest into the stock market to get benefit from this rapid growth. Wow wouldn't it be nice if someone put up a personal savings account instead of Social Security to go with this. Oh yeah they are planning that. Wow an economy plan that has depths to the ripples of growth.

So what are the real downsides to this?
One is Congress will no longer hold a direct control over your money. Stripping power from the Federal government to spend without thought. Every receipt you get at every purchase you make will be a constant reminder to vote to eliminate corruptions in government spending, and bloating in the federal government's spending habits. People who work for Cash under the table, illegal workers, and money from, or on crime will actually be paying taxes as well. Corruption will not be able to get around the Fair Tax. 400 Billion dollars a year in productivity in “Tax Preparation” will be lost. And Sadly the IRS will have to go away. I know, I know we all want to keep the IRS, what would do without that constant fear of being falsely accused of tax fraud. Sadly 1000's of Tax lawyers will be out of work. Be sure to kick the lawyers on their way down will you.

If America implements the Fair tax and the increasing income to the federal government is used to pay off the national debt then the 23% Fair Tax can be reduced to 14% without reducing ONE PROGRAM. 39% of the federal budget is interest on the debt of the United States.

This is a political issue and the politics is money. Just keep this in mind at all times as you listen to the argument. If a politician is elected by the most votes and the Republicans are the “Party of the Rich” Then doesn’t that mean they need more rich people. Democrats are the party of the poor, so that means they need what to get elected?

Original Article at: http://www.gunmuse.com/News/Fair%20Tax-%20Flat%20Tax%20with%20a%20Positive%20twist