Monday, August 30, 2010

Another Reason for the Fair Tax

If illegal immigrants number 12,000,000, and we divide
them into 3,000,000 families of four, using an annual
poverty level of $29,000 spending per family and the Fair
Tax rate of 23 percent, the tax per family is $29,000 x 23%
or $6,670. We get 3,000,000 x $6,670 = $20,010,000,000
in additional tax receipts.
Under the FairTax, U.S. citizens are reimbursed in
advance for taxes paid on basic necessities. This means
they pay no Federal tax on these necessities: a family of
four receives $6,670 as a “Prebate.”
However, those who are in this country illegally will
still pay the FairTax on the first $29,000 they spend, or
$6,670 per family, and they will NOT be entitled to the
Prebate. The result: On the first $29,000 of spending,
illegal aliens will wind up paying 23 percent tax and U. S.
citizens 0 percent. They will have that much less money to
send back to their country of origin. They will be less
likely to stay in this country illegally. Our government
will receive at least $20 billion in additional taxes. With
the Fair Tax we have a win-win situation!

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