One, HR 25, the bill for the FairTax, provides a 1/2 percent retention of the tax buy the retailer collecting it to reimburse for the cost of collection.
Two, if you employ other people you no longer have to do federal withholding for them. You now longer have federal corporate income taxes to file or pay.
Three, if they can order if from England now for 18, then they will have to pay the FairTax at border. HR 25 has provisions for all imports not destined for retail sale being taxed at point of importation, so you can't avoid the FairTax simply by buying things overseas.
Four, as to sales, do keep in mind that people will have a lot more cash in pocket under the FairTax due to the repeal of the income and payroll taxes, as well as the Family Consumption Allowance. I don't know to what degree this will offset the sales issues you refer to, but I suspect it would do so at least somewhat.
I'm very interested in hearing a retailers concerns. I will definitely need to put together a "How the FairTax Effects Retailers" post eventually.
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Re: Wow, I totally Agree
Date: 2004-10-19 02:24 pm (UTC)One, HR 25, the bill for the FairTax, provides a 1/2 percent retention of the tax buy the retailer collecting it to reimburse for the cost of collection.
Two, if you employ other people you no longer have to do federal withholding for them. You now longer have federal corporate income taxes to file or pay.
Three, if they can order if from England now for 18, then they will have to pay the FairTax at border. HR 25 has provisions for all imports not destined for retail sale being taxed at point of importation, so you can't avoid the FairTax simply by buying things overseas.
Four, as to sales, do keep in mind that people will have a lot more cash in pocket under the FairTax due to the repeal of the income and payroll taxes, as well as the Family Consumption Allowance. I don't know to what degree this will offset the sales issues you refer to, but I suspect it would do so at least somewhat.
I'm very interested in hearing a retailers concerns. I will definitely need to put together a "How the FairTax Effects Retailers" post eventually.