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Social Security Payout Analysis

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We live in a time of uncertainty. One of which is financial uncertainty, which affects all Americans, regardless of social economic status. According to the Congressional Budgeting Office the US national debt is on track to being equal 78% of the gross domestic product by the year 2024 (Trumbull). Social Security payouts have neared a level that will soon be unsustainable without a significant increase in taxes. Corporate taxes are now close to 40%, and considered to be one of the highest tax rates in the world (Stone). Former U.S. representative John E. Linder stated that the corporate tax rate has forced many of our good paying manufacturing jobs to be relocated outside the country in order to stay competitive. Making it difficult for low…show more content…
So, it is no surprise that the middle class may also have concerns about the Fair Tax being onerous as well, but once they understand that the price they currently pay at the register includes an embedded costs of the taxes that were paid by the company selling the product, then they realize that the consumption tax is simply a swap, and that the main benefit is that they receive their wages tax-free. Another benefit is that the consumption tax only applies to services, and newly purchased items (Amadeo). If someone decides to buy a home, a car, or anything else that has been previously owned, the purchase is then tax-free. The benefit for the middle class does not stop there, because there is the benefit of attracting more jobs and higher wages as a result of the Fair Tax. Recently 500 international companies were asked how eliminating corporate taxes in the United States would affect their business decisions, and 80% said that they would build their next plant or building in U.S. Creating a higher demand for skilled labor to fill the new positions created, translates to higher wages (Linder). Which would be welcome news a time when millions are out of work, and even college graduates are having a hard time finding a good paying…show more content…
There are many today who are working for low wages regardless of their skill, barely making it in today’s economy. As Americans, we care about how the poor are treated in this country. We want everyone to not only be treated with respect and dignity, especially those who are struggling the most among us. The Fair Tax may well benefit the working poor the most, and here is why. First, by eliminating the income tax and the payroll tax low income earners will have more to spend. In addition to this increase in disposable income, because most companies will no longer pay the matching payroll taxes for their employees under the Fair Tax, they will then pass that money on to their employees in the form of a raise. To further insure that the poor will benefit, the Fair Tax has included a pre-bate in the policy. The pre-bate is the amount of taxes included under the Fair Tax for the essential goods and services. The amount is determined by the poverty level, which is a level determined by the government as needed to ensure that American citizens have the basic necessities of food, clothing, and shelter. A household of four would receive $550 dollars at the beginning of every month to offset the consumption tax, making all the essential items tax free (Linder). The pre-bate will be sent to everyone regardless of income or marital status, because income is no longer considered and everyone will receive the
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