Taxes, Economy and America Part 2

So I explained yesterday some of my favorite things about FairTax. Here is the final portions...

1. FairTax creates a "pre-bate" based on family size. The prebate will cover "essentials" like: food and medicine. Each family legally in the USA will qualify based upon the poverty level in America. A family like mine with 5 members might receive $500/month (the amount is unknown) to reimburse for taxes spent on purchasing these essentials.

That means, if you are in the country illegally, then you DO NOT qualify for the pre-bate. It's one of the few incentives that I have heard about that would encourage people to come to America legally. If they choose to stay here illegally, then they contribute at a higher rate to Social Security and Medicare. In other words, they are penalized for sneaking into the USA.

2. Business development. Recently it came to light that Former President Clinton had money in an "off-shore" account for tax benefits. If the US adopted FairTax, much of that money would return to the USA to be used in this economy. I don't have a problem with people making decisions based on preservation of capital or avoidance of tax burden, but FairTax would eliminate money leaving the USA for tax purposes.

In fact, the research for FairTax (over $22 million so far) established that 400 of the top 500 business in the world would build their next plant in the USA and the remaining 100 would relocate the entire operation here! That means lots of jobs and the US economy getting an incredible shot in the arm!

I may be a Republican, and somewhat conservative, but this plan makes sense to consider! I like FairTax and hope it will pass Congress.