Disclaimer: James Hodges is head of The Fair Tax Group in Kansas. This is his stuff, not mine, I'm just passing it on. Thanks.

"The most costly per dollar of revenue raised is a tax concentrated solely on the income from capital. (In addition to the tax, the deadweight economic loss is about $4.) The next most costly is an across-the-board rate increase on the income from both labor and capital. (In addition to the tax, the deadweight economic loss is about $1.) But no matter whether the nominal tax is primarily on capital income or on labor income, and without regard to who files the tax return and pays the tax, the real burden of the resulting deadweight economic loss falls primarily on low and middle-income wage earners. Thus, not only is the real level of taxation in America about twice the amount reported in the budget, its overall impact tends to be flat or regressive. "

http://www.cstr.org/commentaries/taxreform/riponapr1807.html

The Fairtax taxes neither capital income or labor wages, and the Fairtax prebate makes it progressive, complete exempt all families up to the poverty level from taxation.

One concern is Churches will not be exempt from Fairtax? I do not know the answer to that question. Even if Churches are to pay the Fairtax, the cost of ministry would remain basically the same because churches could be built and operated, and Bibles purchased and distributed without the embedded federal taxes and the reign of terror they cause on the American Family.

Bibles printed without blood money, what a concept.

Thanks, James A. Hodges __._,_.___

Tags: [ksfairtax] How Our Tax System Works - Economic Destruction