-
Bethany Kucera
Female
Traverse City, MI, United States - Share
- Blog Posts
- Discussions (2)
- Events
- Groups (1)
- Photos (16)
- Photo Albums
- Videos
Bethany Kucera's discussions
Ultimate Holiday Playlist
Replied Dec. 23, 2008
The Foods All Northerners Must Eat Before They Die
Replied Oct. 27, 2008
Comment Wall (29 comments)
You need to be a member of MyNorth to add comments!
Join this network
... that's all
The proposed Michigan FairTax would REPLACE the income tax and current sales tax, with a consumption tax (sales tax at point of retail sale). Under this plan, no more state tax will be withheld from Michigan wage-earners' paychecks. What's more, every Michigan resident-family will receive a monthly "prebate" check, in amount based on family size. This will ensure that NO Michigan family will EVEN BEGIN paying the MI FairTax on goods / services unless, or until, they exceed poverty-level spending.
Under the MI FairTax plan, points of collection are substantially reduced to just retailers, many of whom are already collecting sales tax. Because service providers must account for income tax withholding and compliance costs, their prices carry a hidden tax which a FairTax will make visible. (Business-to-business purchases would not carry the tax, as this would, again, hide the cost of taxation in prices.)
Because of the "prebate" (advance rebate calculated as .0975 x $ [poverty level spending per family size]) to ALL Michigan-resident households, the MI FairTax rate would effectively be 0% on all monthly family spending to the poverty level; thereafter it's 9.75%. A reasonably inferred average effective rate would be ~5.5% (see p.2 of pdf brochure, also review an economic analysis [pdf] on MI FairTax effects prepared by the Hillsdale Policy Group).
Please, join our email list to be kept informed!
Why the FairTax idea is right for America's working families.
Dr. Laurence Kotlikoff believes that it will take the FairTax to reverse unfunded obligations, now above $53 trillion and counting!
View All Comments