The Fair Tax Postings

Im just learning about this Fairtax take home pay issue. I hear now we don't take home more money because of Fairtax -- we just take home what we did before. Our employer can keep the money that we used to pay in taxes.

I thought we all got to keep the money we used to pay in taxes -- the money that was with held.

Boortz even said we kept that money - that money we would use that to pay the new federal sales tax, which fairtax is.

Even a letter here said they take home 70,000 now, they would take home 100,000 after Fairtax.

So there seems to be this "wrinkle" - and its a huge wrinkle!

I need to know. Am I going to take home 90K, or 70K.

Now I hear that we DON'T take home any more than before. If we paid made 100K, and paid 30K in taxes -- we will take home 70 after Fairtax too - our employer keeps the 30K difference.

But if we don't get to keep that money we used to pay in taxes -- how will we pay the new federal taxes on things like gasoline, food, rent?

Please make it clear -- do we take home more money or not under fairtax?

I do not claim to be a prophet. I can not guarantee you that your current gross pay will stay the same. Some of the Fair Tax proponents say that it will, some say it will drop.

Here are the reasons it could stay the same: If your employer pays you $100,000 now, then that's the market rate for your work. It includes your skills, abilities, and training, and your knowledge of company culture and policies, and not least how valuable your particular work is to the company. Now, if you had some expense that suddenly decreased (like gas prices falling, or refinancing your mortgage), your employer doesn't come to you and say, well, we can lower your pay because you had a decrease in your personal expenses. All the reasons that the company valued your work at $100,000 before the expense decreases remain. Same thing for taxes; you no longer have to pay FICA and Income taxes. Those are expenses you no longer have to pay. Your employer has no special incentive to lower your pay.

For the reasons why your pay could be lowered (or lowered while you get a raise), please read through my original post.

Thanks!

cavalier973
For God and Free Trade