The American people will receive their entire paycheck as spendable income. This includes withholding taxes, social security withholding, there would be no taxes on any income.The only time we would pay taxes is when we made a purchase. These taxes would be collected at the checkout counter or by the seller.
Sellers of our purchases should reduce their costs by at least 22 to 25%, as their cost would come down by the same percentage costs, their cost being taxes, legal fees, government lobbing, etc. related to Companies taxes. Plus, by removing the IRS it would reduce costs to the taxpayer by $425 billion (about $1,300 per person in the US) in tax preparation.
With no taxes on business – there is $17 trillion (about $52,000 per person in the US) that would be invested in the U.S.A, plus, it is estimated that 80% of foreign businesses would move to America. Good paying jobs would be available to all Americans.
The most important idea would be that the American People would have control over government spending. With the proper voting laws, we, the American People could control government spending.
There is a bill H.R. 25 which you can download from the internet (in a search engine type in hr. 25 and it will come up) H.R. 25 would make the transition from an income tax system to a consumption tax system highly likely.
Under a consumption tax system our growth rate would be at least 5% and probably more. We would be able to control inflation and pay off the federal debt as well as our own debts. Our standard of living would improve considerably.
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Probably true
Benefits of Final Consumption Taxation
Paul, this is the only thing that is both fair and constitutional. We would explode with growth.