Fair tax burden to all but rich
Because of the recent controversies with the IRS, Right-Wing Republicans are inundating the news media with propaganda to abolish it and replace it with a so-called 'Fair Tax.' This new method of taxation would be a windfall for the super rich while adding an additional burden to the middle- and working classes.
It would replace all forms of federal taxation, including income tax, but most importantly it would do away with inheritance tax, allowing the super rich to bequeath billions of dollars to their heirs for untold generations, creating a moneyed aristocracy.
I do not have enough space in the allowed 300 words to go into all the particulars of this so-called 'Fair Tax,' so I recommend that you research it on the Internet, especially through 'FactCheck.' One of the problems with this tax is the method in which it is to be calculated and collected.
Its proponents intend to start with a tax rate of 23 percent on all new goods and services. However, this rate is to be applied to the total cost of the item including the tax. On a total of $100, including tax, the retailer would have to submit $23 to the federal government. That would leave $77 going to the retailer. $23 tax paid on $77 is actually a tax rate of 29.88 percent. This is the actual truth.
Most independent analysts have determined that to replace the amount currently collected by the IRS would require a tax rate closer to 40 percent. If you add in state and local sales taxes, the total tax on everything that is spent means a person will be paying approximately 50 percent more for an item or service. A $20,000 car will cost approximately $30,000. Please check your facts before you respond to this.
Dennis Thompson Newnan