Don’t like the current income tax system. Would you be interested in a “Fair Tax” system? Another “Fair Tax” bill was introduced in Congress by Representative Rob Woodall (R-GA). The “Fair Tax” H.R. 25 bill introduced by Rep Woodall would be a consumption tax. The consumption tax rate proposal has garnered more than 50 co-sponsors.
While eliminating the current income and the payroll tax, the tax rate under the consumption tax is 29.9% of an item’s total price, including the tax. The consumption tax rate does not include the State sales tax rate for those States that have a sales tax rate.
If the proposed consumption tax is passed, the combined Federal and State Sales tax would be greater than 34% in most States. In Tennessee where I am located, the Federal and State sales tax would be 38.85% under this proposed consumption tax.
When you start talking fair tax, is 38.85% on everything you buy a fair tax? In Europe, the Value Added Tax *VAT) is about 30% in most countries. For me, I would rather have the 10%, 15%, 25%, 35%, and 39% income tax brackets than a 38.85% consumption tax?
Would you rather have a 29.6% consumption tax (sales tax) or the current income tax? Let me know your thoughts?
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