taoist
2008-03-02 08:57:32
It’s not the current income tax that is included in the price of goods you pay: its corporate income taxes. Currently, corporations base the majority of their decisions on tax law, raising the cost of doing business. Also, the actual corporate taxes are of course passed on to the customer in the price of their product. In short, the current tax structure raises the price of goods 20-30% on average, and in an inefficient way that doesn’t give the government 20-30% income on those goods. Eliminating corporate income tax and putting the Fairtax into place would keep the price of goods roughly the same but allow the government to collect money far more efficiently – which means less taxes need to be collected in total, too.
