I've been getting hit with unsolicited phone calls on Fair Tax.
Since I didn't know much about it I decided to look around the net on the subject. I think this small part of one page will be interesting for retiree's.
I'll also post a link so you folks can see where it came from and read yourself if interested.
I'm not saying I support this, just reading about it.
Steve
(from web site)
Secondly, not every one's average net tax burden falls. For households whose major economic resource is accumulated wealth, the FairTax will deliver a net tax hike compared to the current system.
Consider, for example, your typical billionaire, of which America now has more than 400. These fortunate few are invested primarily in equities on which they pay taxes at a 15 percent rate, whether their income comes in the form of capital gains or dividends. In addition to having the income from their wealth taxed at a low rate, the principal of their wealth is completely untaxed either directly or indirectly. Assuming they and their heirs spend only the income earned on the wealth each year, the tax rate today is 15 percent. In contrast, under the FairTax, the effective tax rate is 23 percent. Hence, the very wealthy will pay more taxes when the FairTax is enacted. In a nutshell, those who spend more will pay more but low, moderate and middle income taxpayers will benefit from the greatest gains in reduced tax liabilities.
For more information on this topic, see
Americans For Fair Taxation:
Since I didn't know much about it I decided to look around the net on the subject. I think this small part of one page will be interesting for retiree's.
I'll also post a link so you folks can see where it came from and read yourself if interested.
I'm not saying I support this, just reading about it.
Steve
(from web site)
Secondly, not every one's average net tax burden falls. For households whose major economic resource is accumulated wealth, the FairTax will deliver a net tax hike compared to the current system.
Consider, for example, your typical billionaire, of which America now has more than 400. These fortunate few are invested primarily in equities on which they pay taxes at a 15 percent rate, whether their income comes in the form of capital gains or dividends. In addition to having the income from their wealth taxed at a low rate, the principal of their wealth is completely untaxed either directly or indirectly. Assuming they and their heirs spend only the income earned on the wealth each year, the tax rate today is 15 percent. In contrast, under the FairTax, the effective tax rate is 23 percent. Hence, the very wealthy will pay more taxes when the FairTax is enacted. In a nutshell, those who spend more will pay more but low, moderate and middle income taxpayers will benefit from the greatest gains in reduced tax liabilities.
For more information on this topic, see
Americans For Fair Taxation:
