Fwd: Effective tax rates vs. stated tax rates
Is the 23% FairTax revenue-neutral rate higher or lower when compared to income and Social Security taxes people pay today?
Most people are paying that much or more today -- much of it is just hidden from view. The income tax bracket most people fall into is 15 percent, and all wage earners pay 7.65 percent in payroll taxes. Thats 23 percent right there, without taking into account the 7.65 percent employer matching! On top of that, you have to add in the business taxes and associated compliance costs passed on to consumers in higher prices.
Effective tax rates vs. stated tax rates
Because the 23-percent FairTax rate of $0.23 on every dollar spent is not imposed on necessities, an individual spending $30,000 pays an effective tax rate of only 15.5 percent, not 23 percent. That same individual will pay 17.3 percent of his or her income to federal taxes under current law. See effective tax rates for a family of four at various spending levels in Figure 2.Figure 2: 2007 effective tax rates
Special deal for Yahoo! users & friends - No Cost. Get a month of Blockbuster Total Access now
OMG, Sweet deal for Yahoo! users/friends: Get A Month of Blockbuster Total Access, No Cost. W00t