I think the Fair tax plan would be an easier sale if all Sole Priopritorships
and non limited liabilty Partnerships were exempt, especially if the business
is not getting other government subsidies ( corporate and registered LLC
status being a government subsidy).
According to bizstats.com there are 25 million businesses that
turn in a tax return , in the US 17.9 million of these are sole owner
businesses,
they are 72% of the businesses but only 5% of the annual business revenue,
67% have a annual gross revenue of 25,000 or less and 79% have an annual gross
revenue of 50,000 per year or less and 89% have an annual gross revenue of
100,000 per year or less. Now that is gross revenue if after tax net
income
is as high as 20% then then over 64% of all businesses in the US have an
after tax net income of 20,000 per year or less, probably 10,000 or less thus a
person working full time at the US minimum wage of 5.15 an hour could very well
have a net after tax income above the after tax income of a majority of
businesses in the US.
Non limited liablity Partnerships make up 5% of all US businesses with a
tax return and 8% of annual revenue.
Corporations make up 20% of all US busineeses and has 85% of all annual
business revenue, Limited Lioablity companies have about 2% of all business
revenue.
It stands to reason that if Sole owners and Partnerships were exempt
from the 23% sales tax the tax would not have to be increased by much to
remain revenue neutral, if they earn 13% of total revenue, maybe increasing
the
sales tax to 26% on corporate and LLC would make up for the shortfall by
exempting Sole owners and Partnerships, or federal spending could be cut by 13%
and
leave the tax at 23%.
Now for some reason the exempt businesses may be made up mostly business
that would be sales taxed otherwise but I don't think the fiqures show that.
Still say they make up 26% of the sales taxable revenue, then increase the
sales tax on corporate sales taxable business to 29% or 33% if the tax is added
on at the point of sale or cut the federal budget by 26%, if the federal budget
is 2.4 trillion dollars cut it down to 1.7 trillion dollars.
The federal government in no reasonable shape or form needs the i
revenue from the personal income tax, Social security/ medicare taxes more than
pay for the programs, the present federal corporate income tax, custom
duties, excess taxes and other revenue sources bring in almost 400 billion
dollars
or more which is more than enough to operate a constitutional federal
government and pay down the federal debt.
End the personasl federal income tax and cut spending to match, replace
all other taxes including custom duties, excess taxes, social security/
medicare and corporate income tax with a corporate sales tax on services
mentioned
in the fair tax plan and new goods, used goods sold by corporate retail outfits
would not be taxed. A 20% or less sales tax added at the point of sale should
be enough if a 27% is enough with the present fair tax plan .
[Non-text portions of this message have been removed]
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