Pass the FairTax and the minimum wage earner brings home the full $15,080. They get an additional $2,505 as a reimbursement for the tax paid on the basic necessities. That's $17,585 take home - a 31% raise in one year! Yes, the FairTax is a 23% national retail sales tax on new goods and services. According to the experts, the price of every US produced product we buy is ~ 22% more expensive because companies embed the cost of the tax they pay in the price of their products - thereby passing the cost of corporate tax on to the consumer. Under the FairTax, the prices for products produced in the U.S. should drop an average of 15%-18% at the wholesale level because the embedded tax is removed. Add back in the 23% national retail sales tax and retail prices only go up 5% to 8%.
So, increase the minimum wage 24% over the next three years and hurt small businesses or pass the FairTax and create millions of new jobs.
Which would you choose?
James R. Donnell
Cameron Park, Calif.