What Is the South Carolina FairTax Act?
- It eliminates state income taxes on households and businesses, saving them thousands $$$.
- It includes a monthly Prebate check which pays for sales expenses for groceries, medicine, etc. (see Prebate table here)
- It only taxes new retail goods and services at the point of sale.
- It simplifies our state tax code and eliminates the SC 1040 income tax form.
- It treats all taxpayers and businesses the same.
- It provides a 6% base sales tax which brings in the same amount of money for the State government as our current tax code.
How will the SCFairTax Act Impact My Life?
Your take home pay will increase immediately after the FairTax Act becomes effective as taxes are no longer withheld from your paycheck. You no longer have to keep records or fill out and file incomprehensible tax forms. Best of all, as the business climate improves dramatically and there is more competition for good employees, your value to your employer increases and your wages increase accordingly.
What Makes You Think This Will Work?
The South Carolina FairTax will work because it applies sales taxes to all NEW retail goods and services. It becomes a consumer tax, not a production tax, therefore people are only taxed on item they purchase not on products they manufacture. This will greatly draw businesses to South Carolina. The amazing thing about SCFairTax is that it is NOT NEW. Every component has already been successfully employed in one state or another, and on occasions some have been partially implemented nationally. What makes the SCFairTax proposal unique is that it is the first time all of these great ideas will be implemented at the same time.
What Is The Difference Between FairTax and FlatTax?
We already have a flat state income tax. Anyone with a full-time job pays the top 7% rate. The South Carolina FairTax Act ends taxation on income for all households and businesses. The FairTax taxes consumption so there is no need to file a tax return. The flat tax taxes income. In 1986, the tax code was revised to contain just two tax brackets. There have been well over 16,000 changes to the tax code since then. It is time we take back the power of authority in “We the People”.
What Is A Prebate?
The prebate is a monthly payment which covers all sales tax expenses on retail spending up to the poverty level. This means a lawful family of 4 would have to spend more than $2400 per month on retail goods and services before they ever paid a penny in sales tax! The amount of the prebate is based on household size. The prebate completely untaxes the poor and increases disposable income for the middle class