And the first $11,500 per person per year (the currently defined poverty level) is not taxed. Therefore no one pays taxes on necessities, a big break for low income families.
A couple spending $50,000 a year on new goods and services would be taxed on only $27,000, a tax bill of only $6,210, which is 12.4% of their expenditures based on the proposed 23% consumption tax. The proposed law has been thoroughly researched and written by several highly trained economists who believe that the currently proposed rate will be revenue neutral with the taxes that are eliminated and will accomplish all of the benefits that are anticipated.
Taxes that are eliminated include: income tax, payroll tax (Social Security and Medicare withholdings), gift tax, estate tax, corporation tax, and taxes on interest, dividends, and capital gains. The bill will soon be discussed by Congress. Please let your voice be hear if you want to eliminate income taxes and the IRS.
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