The Republican ballot has questions. One question is to replace the income and sales tax with a consumption tax. When I first heard Neil Boortz talking up a Federal Fair Tax it sounded great. After I read his two books on the subject I am against it.
Seniors don't get taxed on Social Security and the first $130,000 in retirement income. (Joint married filers, Georgia income tax). I pay 7% sales tax on goods but no tax on services. This would make everyone pay tax on services. This would include doctor visits, haircuts, tax prep fees, labor on plumbing and auto repairs too. There are many more too. This would increase insurance rates too. Tax on auto repairs labor, home repairs, medical fees would raise your premiums. Your auto, home, health premiums would have the tax added.
I pay no income tax on my Roth IRA withdrawals too. Now I pay sales tax on goods but nothing on services. With this new tax a $10,000 hospital bill would add about $700. The average sales tax in Georgia is just over 7% now.
Seniors don't get taxed on Social Security and the first $130,000 in retirement income. (Joint married filers, Georgia income tax). I pay 7% sales tax on goods but no tax on services. This would make everyone pay tax on services. This would include doctor visits, haircuts, tax prep fees, labor on plumbing and auto repairs too. There are many more too. This would increase insurance rates too. Tax on auto repairs labor, home repairs, medical fees would raise your premiums. Your auto, home, health premiums would have the tax added.
I pay no income tax on my Roth IRA withdrawals too. Now I pay sales tax on goods but nothing on services. With this new tax a $10,000 hospital bill would add about $700. The average sales tax in Georgia is just over 7% now.