Richard_B Wrote:
Jan 31, 2013 9:06 AM
Income tax is collected by businesses but is passed on to consumers as a hidden tax. No business pays their income tax out of their own profits. Under the Fair Tax that hidden tax would disappear from many American made products. The hidden tax averages about 25% of the retail price. Any American business that has competition will likely drop the hidden tax from the price of their product. The result will be that American made goods will become highly competitive both at home and on the world market. Businesses that have moved off-shore would return to the US under the Fair Tax and many businesses would relocate to the US to avoid income tax. This relocation would result in a huge increase in the number of businesses based in the US.