The FairTax applies to all NEW goods and services sold at retail.
Read the legislation, please, so you can gain a real understanding of how FairTax works.
Whether you know it or not, every retail good and service purchased by an American consumer has a federal tax burden of roughly 25% built into the final sales price.
When the federal tax burden is lifted FRom the corporations and businesses that provide the goods and services American consumers purchase, those businesses and corporations will be forced, through competitive marketplace pressures, to lower their prices to remain competitive. That is the nature of our FRee enterprise system.
What I am saying is that a $100,000 house in today’s (income tax) market will be a $100,000 house, FairTax inclusive, in tomorrow’s (FairTax) market.
Likewise, your $4.95 McDonald’s hamburger meal will still be $4.95.
And, you must remember, you are paying for the house and the Mickey D’s hamburger meal with money that has not been taxed!
In the FairTax system, no taxes are paid until a retail sales transaction takes place.
Please do your own research; don’t take my word for it.
When you do your research, be thorough. I think you’ll be pleasantly surprised!
Is a newly built house considered a new product but a home with a previous owner not? What about used cars? What about medical bills? Insurance?
No "FairTax" (I loathe that biased name) advocate can get around the regressive nature of a flat sales tax. Not to mention the sticker shock of a 20% or higher sales tax on almost everything. It's absolutely brutal to low income taxpayers. It will never pass, and I wouldn't want it to.