The Democratic Party is currently running an ad trying to make you think that a proposed 23 percent national sales tax is a tax increase on purchases. Don't believe it.
This tax, also called the FairTax, is a replacement tax, designed to replace all federal taxes, including those that are currently hidden in the cost of producing goods and services and passed on to the buyer in the price. Under the FairTax, if there is any increase in the purchase price of a new good or service, it would be negligible.
On the other hand, what would surely increase is your net income, because there would no longer be any federal income tax, Social Security tax or Medicare tax taken from your income. In addition, all current taxpayers would receive at the beginning of each month a check from the government to cover the amount of FairTax that they would expect to pay on purchases of the basic necessities of life, such as groceries, up to the poverty level. Everyone would benefit from this.
Everyone, including foreign visitors to our country, would contribute to the FairTax when they purchase goods or services. There would be no more tax evasion or cheating on taxes. The government would operate on what we buy, not what we earn. Support the FairTax.
James R. Faulkner