Posted by
Dave on Wednesday, February 11, 2009 3:56:43 PM
Can you believe this?
I was asking one of my nieces to support the Fair Tax and join the Fair Tax Nation. She wrote back and asked what the Fair Tax was so I gave her a simple explanation like you get to keep you whole pay check and no longer pay income taxes and referred her to their web site www.fairtax.org and my blog idspeck@blogtownhall.com. Well she wrote back and said she was not sure if she liked that because she liked getting that refund check back every year. Trouble is she does not get a refund because she does not pay enough into the system to get a refund. She like many families get that so called Earned Income Credit, which is not really earned income from them but money that the government takes from other tax payers and then gives it away to them. So I went to my copy of the Fair Tax Book and looked up what a family of 4 would be getting with the monthly Pre-bate check. It’s about $491.82 a month. Well it looks like to me that her family would be getting a little less form the pre-bate check then she is now getting from the Earn Income Credit. The biggest difference would be she would receive a little every month instead of a lump sum at the end of the year. Then it dawned on me that is not all she would get but since she is no longer paying income tax you will have to add that savings into the equation. Also, since her and her husband’s employer will no longer have to pay the pay roll tax they might even get a pay raise, so now it looks like to me she is actually getting more. Any one who has studied the Fair Tax knows it does a lot more. Now I do not claim to be an expert on this but from what I see if this is all the Fair Tax does it would still be a good idea.
David Speckhardt Sr.
Selma, NC 27576