Herman Cain – FairTax would supercharge US economy

Herman Cain, business man, political conservative, and possible Presidential candidate in 2012 talks about the ways the FairTax plan would supercharge the U.S. economy sooner rather than later.

  • The FairTax plan will replace the federal income and payroll based tax system with a simple, transparent and fair national retail sales tax.
  • You will bring home your entire paycheck, and then you decide when and how much you pay in taxes when you spend your money.
  • Taxes are assessed at the retail, or consumption, level so businesses will be able to compete globally.
  • The ability of politicians and lobbyists to manipulate the tax system to benefit themselves and their interests goes away under the FairTax plan.

The benefits of the FairTax plan are many, and the only way to make it happen is to get involved. Visit FairTax.org for more information or read the FairTax bill, H.R. 25, for yourself.

11 thoughts on “Herman Cain – FairTax would supercharge US economy”

  1. Herman Cain is our best chance of turning our great country around. He has proven his leadership qualities and problem solving skill by taking company in financial trouble and turning them into profitable business in a short amount of time. Herman Cain for President 2012

    1. Suzanne,
      Thank you for your comment. I have enjoyed listening to Herman Cain on the radio for several years now, and he certainly has my attention as a potential Presidential candidate in 2012. I too am anxious to see whether he will announce his candidacy soon.

    1. That’s interesting how you do that. You take pieces of information from here and there, mix them all together and come to conclusions as if they are truth. Your research is half-baked and still runny on the inside. If you’d actually look into the FairTax rather than just referring to it as a means of supporting your assumptions you’d find that it replaces all income taxes at the Federal level. Under the current system corporations don’t pay any taxes. They collect money from their customers and pay it to the government in the form of taxes. Under the FairTax plan the taxes are paid only at the retail level so there are no embedded taxes added to the cost of services and merchandise.
      No matter how you slice it, tax dollars come from consumers. Under the current income tax system we are taxed at every stage of production, as every entity that handles the product is taxed on it. Under the FairTax system the tax is added only at the final sale, so you know exactly how much of that product or service cost is a tax.
      The truth is not a moving target, but if you’re going to claim to hammer it you should at least be able to recognize it.

  2. A fair tax that imposes a surcharge on everything that Americans buy is anything but fair. High income Americans typically spend a far smaller percentage of their money than lower income Americans. Speaking as someone who as lived pay check to pay check (spending everything that came in to survive) in the past with a Fed income rate of about 15%, how would paying 25% in taxes on basically all of my income be fair, when high income workers, who would have paid 35% on their final taxable income, only have to pay 25% on what they spend and the rest is tax free income.

    1. To begin with, as soon as the FairTax is implemented you will no longer have Social Security and Medicare taxes deducted from your paycheck. For most this would mean an immediate 25 to 30 percent increase in take-home pay. Next, the FairTax calls for a ‘prebate’ to be paid to every American taxpayer that will ensure no one pays taxes on the necessities of life. Those who live paycheck to paycheck are already better off, and the social programs and systems are still in place and being funded. How is that a bad thing?

      Okay, higher earners spend a smaller percentage of their income. But, they still spend more money and will therefore be paying more of the collected taxes. As a lower income earner you will not be paying more, and in fact you will be bringing home more of your pay. So, as long as the government is still being funded and it’s not costing you more, why is that not fair?

      The beauty of the FairTax is in the expanded tax base that it creates. Suddenly, instead of the bill being paid only by those who work and earn a paycheck it will be paid by everyone who spends money in our Country. When you add millions more contributors to the tax base everyone benefits by bearing less of the burden.

  3. People on fixed incomes such as Senior citizens wher they don’t pay any taxes now because of amount of income. How is this fair tax going to help them by having to pay more tax on consumer goods.

    1. Under the FairTax plan no one would pay taxes up to the poverty level of income. This is accomplished through the ‘pre-bate’ which pays each household an amount equal to the tax they would pay on purchases up to that level. So, not only will those on fixed incomes not have taxes deducted from their pension checks, but they will also be ‘pre-imbursed’ for the taxes collected when they spend money.

      The FairTax plan doesn’t necessarily reduce the amount of taxes anyone will pay. What it does do is replace taxes on income with a simple, fair tax on spending. And, by doing so it broadens the base of those who pay taxes. Instead of taxes being paid only by those who earn an income in this country, they will be paid by everyone who spends money.

    1. “7 Reasons Why…”

      Your “analysis” of the FairTax is flawed in so many ways. Yes, products and services are taxed, but only at the retail level. All the embedded taxes that we are currently paying are removed from the system under the FairTax plan. Rather than prices increasing it is estimated that they will remain at about the same level because the taxes currently being collected by each member of the supply chain no longer exist.

      The prebate insures that no one pays any taxes on spending up to the poverty level. Meaning if poverty level income for a family of four is $22,000 then they will be ‘pre-imbursed’ for the taxes they will pay on spending up to that amount. Now, instead of simply not having to pay income taxes they also do not have Social Security, unemployment, and all the other withholding taxes subtracted from their paychecks before they ever see them.

      The Mortgage Interest Deduction is an income tax deduction, but under the FairTax plan you’re no longer paying taxes on income so there’s no need for a deduction. Additionally, the FairTax only taxes newly constructed homes. Pre-existing home sales are not taxed. And additionally again, when you purchase a home under the current system your dollars have already been taxed. Under the FairTax plan you will receive all of your paycheck up front enabling you to save a bigger down payment in a shorter amount of time, and thus reducing your mortgage payment.

      People will not stop spending. In fact, when we compare our Personal Consumption Expenditures to our Adjusted Gross Income we discover that spending is a much more consistent and reliable measure. When times are good, people spend. When times are tough, people spend. Those of us living paycheck to paycheck may cut back on our discretionary spending, but those who have money continue to spend and some even increase their spending when there are bargains to be had.

      And then, there are the millions of tourists and visitors who come to our country every year. Under the present system they contribute nothing in the way of federal revenue, but under the FairTax plan every dollar they spend will be a donation to our federal tax coffers.

      Read the Bill (H.R. 25); read the books. Educate yourself. Passing and implementing the FairTax plan could, in one fell swoop, correct the direction of this country and remedy many of our growing problems. It’s fair, transparent, and simple. It’s everything our government doesn’t want so it’s up to us to understand it and insist upon its passage.

  4. I do accept as true with all the ideas you’ve
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