Does The Fairtax Hurt The Poor?
No It Doesn’t! - Check This Out!
No It Doesn’t! - Check This Out!
How often have you heard the canard “The FAIRtax is a sales tax; it hurts the poor”. Wouldn’t you like a quick comeback? Now you have one!
FAIRtax-er John Gaver, author of The Rich Don’t Pay Tax … Or Do They? (available on Amazon)
has come up with a remarkably simple-to-use spreadsheet focused on 1 question:
how does a minimum-wage earner make out in each state of the United States
under the Income-Tax and under The FAIRtax?
By clicking here you can download the spreadsheet
and here is a sample page for California.
As John goes from state to state, he adjusts for minimum wage and rent. Food and drink stay constant for the purpose of his analysis (John feeds the minimum wage earner 1 Tall Latte, 1 Happy Meal, 2 Cups O’Noodles each day).
Which system gives the minimum-wage earner more money after taxes and expenses? The FAIRtax every single time!
In California you will note John adds 30% to the cost of rent and food and drink to the “income-tax” prices in order to calculate the prices under The FAIRtax. John, out of an abundance of conservatism, disregards the pre-tax drops in The FAIRtax prices occurring due to removal of embedded tax costs and efficiencies from increased investment.
John points out the Earned Income-Tax Credit isn’t considered because in each state, the full-time minimum-wage worker earns just above the “EITC” cap.
Clothing is not considered because under The FAIRtax everyone has the option to buy used clothing tax free.
John’s calculator is more focused than the “KIS” - Keep It Simple calculator on our web page. The KIS calculator attempts more because it tries to show how everybody, not just minimum-wage earners, would make out under The FAIRtax.
The KIS calculator, like John’s spreadsheet, is also conservative because it assumes all funds earned are spent on taxable goods and services.
In fact, middle class people apply much of their earned funds to many non-taxable items, including local taxes, donations, tuition, savings-investment, used items, loan and mortgage repayments. These non-tax applications, which are sometimes hard to establish, would reduce the impact of The FAIRtax for any family.
John credits his inspiration for developing his spreadsheet to California FAIRtax-er, Frank R. Wagener, whose pictures appear in Facebook with California State Director Marty Sturmer at university campuses all over the Bay Area.
We thank John Gaver for his contribution.
John Gaver
John Gaver born 1948, grew up in Corpus Christi, TX. After graduating from college, he held several IT executive positions. He later owned several successful businesses, including an import-export business and an IT consulting business.
He has traveled extensively in the U.S.A., Far East, Latin America, and Europe, living in London for a time.
He tried to retire at 50 years old, but found himself at loose ends. So he began taking occasional jobs as a title researcher, proving title ownership information for right-of-way acquisitions and drilling rights. This work helped him hone the research skill he uses in his political and economics writing.
Since the publication of his 1st, he has been a featured guest on numerous radio programs, including CNBC's - "Opening Bell", Israel National Radio's - "Tamar Yonah Show", was for a time, the "Tax & Economy Contributor" for the "Red, White & Lori" radio program, and has been a compensated presenter at a major U.S. political convention.
His presentation of economic issues crosses partisan boundaries and so he finds it easy to speak to groups of all political persuasions.
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When others see your activity, they are inspired, and the process snowballs. When the process snowballs, Representatives, Senators and, yes, even the President start to take notice and listen to Us.
Yours In Liberty,
Jim Bennett
AFFT Grassroots Coordinator & Secretary
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