December 5, 2012

Letter: The Fair Tax is the best tax

I am amazed that no one talks about the true source of all taxes.

Here are the facts. All taxes are paid by the consumers of products and services either directly or indirectly. All people (including the rich) decide to work for a company based on their projected net income after taxes, etc.

If a “rich” man’s net income goes down due to higher taxes then he will make a decision to either stay and get a raise from his company, stay and live with a smaller net or go somewhere else where his net either remains the same or is increased by the new company. Either option is bad for the economy.

A company’s payroll cost is no different to the bottom line than any other cost of doing business. All costs are recovered in the price of goods and services sold to the public. If you raise income taxes on anyone at all then you are directly raising the cost of everything that anyone, including the “poor,” buys. In short, a rise in income taxes is a direct and real increase in the cost of the necessities of life.

All taxes are paid by the consumer, always, no matter where it is originally collected. Anyone who advocates a higher tax on the “rich” is in reality taking food out of the mouths of the poor. In closing, I would like to suggest passing the “Fair Tax” bill and get rid of the income tax completely in order to “cut out the middle man” which saves the government a huge amount of money and pay taxes where they always come from anyway.


Daniel H. Weller Sr.


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