Hugh and the Fair Tax    I am a great admirer of Hugh Hewitt and he recently blogged about candidate Huckabee and the Fair Tax. Unfortunately he referenced an article by someone very opposed to the Fair Tax and it spread some incorrect information which you can verify by reading the act itself or the book. If you have not read Hugh's post please click on the link above. (The colored words at the beginning)

Here are Grampa Stew's comments:

Listen up young folks.
If you purchase a memory stick for $100 there is actually built into that price an average of $22.00 for business income taxes and the cost of efforts to minimize taxes. So if you eliminate the income tax the cost of that memory stick will drop to about $78.00 through competition.

The add back in of the Fair Tax will be $23.00 which includes enough, because it is on all new products and services to even fund our Social Security.

Now that memory stick will cost $101.00.  The $23.00 added back in is 23% of the $101.00. It is also 29.5% of  the $78.00 it was added to. In order to not confuse you the tax is quoted as 23% but you can quote it any way you want to but be consistent. Taxes now add 29% to the $78.00 cost and you replace that with a 29.5% tax. Or the tax is 22% of the total and will be 23% after the Fair TAx.

In any event, you pay almost the same for your products and you do not pay any more income taxes. Why worry about deductions? You are getting a 100% deduction so send your charity a share.

You will also receive a rebate of your taxes required to meet the basic neccessities of life and this can be $300 a month or much more depending on size of your family. I have charted the effect of this money and the reduction in taxes plus the rebate can give you an annual income increase  that is significant. It could be $7,000 to $10,000 a year. How would you like to earn another $10,000 a year just by reading a book and understanding the system and supporting it?

It would make the US the world's greatest and safest tax haven. Money would pour into our banks, interest rates would stay low, investment would increase and we could become the big innovators of the world again.
Plus our Social Security and Medicare would be financed. 

If you just read the book or read about it you will be for the Fair Tax.

And do not be upset with Hugh Hewitt. Months ago a group was faced with a problem of coming up with good candidates for the party who would protect our ideas of the constitution and they did a great job of coming up with some great candidates. They made some difficult decisions very early and everything will be fine.

The constitution says "We the people"  and we the people need to take back control of our votes and who we voted for. One of the first steps is to take power away from those who trade tax deductions for financial support.

Hundreds of thousands of "We the People" have looked at the Fair Tax and we appreciate a voice like Gov. Huckabee. However, the Fair Tax movement is non political and cannot support and does not support Huckabee but it seems he is doing a good job of getting our attention.

That's old Grampa Stew's words for you on the Fair Tax and thank you.