Unlawful emigration has been in the news for a long time and some have asked me how will the FAIRtax help or hinder the control of illegals flooding into our country. Perhaps I can explain how it will help stem the flow of illegals. Remember, the FAIRtax REPLACES the federal income tax and payroll tax system with a national retail sales tax plus a prebate which makes spending up to the poverty level tax free.
This means that those living at or below the poverty level will pay the FAIRtax rate of zero percent. A person spending twice the poverty level would pay a spending tax rate of 11.5%, a person spending three times the poverty level would pay an effective rate of 17.3%, and so on. Your tax rate is determined by you and by how you spend. The FAIRtax will, for the first time, tax undocumented workers who now evade the income and payroll taxes.
Under the FAIRtax, all persons living in the United states will pay taxes, whether they are here legally or illegally. Under the current system, many illegals do not pay income and payroll taxes even though they are here earning wages and are legally required to do so. They may also be receiving benefits in the form of health care, education, housing, roads and much more.
Under the FAIRtax, both lawful and unlawful residents will pay taxes when they purchase new goods and services for consumption here; however, only lawful residents are eligible to receive the FAIRtax prebate which effectively eliminates taxes on spending up to the poverty level. Unlawful residents will be paying a rate of 23 cents on every dollar they spend since they are not eligible for the prebate.
The only way to get the prebate is to become a legal resident or citizen. In this way, the FAIRtax helps promote legal emigration. It also ensures that unlawful residents contribute to the cost of providing the services they receive. For more,information please go to FAIRtax.org
