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Investment and the Economy
Investment and the Economy
Investment and the Economy
The FairTax eliminates
the tax bias against investment.
Under the FairTax, savings and investments are not
taxed at all. As Americans save more money, the pool
of funds in lending institutions grows. When you add to
this the flood of capital currently trapped offshore, we
realize a huge increase in the pool of capital, thereby
causing the cost of borrowing funds to drop.
The FairTax eliminates
the tax bias against investment.
Under the FairTax, savings and investments are not
taxed at all. As Americans save more money, the pool
of funds in lending institutions grows. When you add to
this the flood of capital currently trapped offshore, we
realize a huge increase in the pool of capital, thereby
causing the cost of borrowing funds to drop.
The FairTax eliminates
the tax bias against investment.
Under the FairTax, savings and investments are not
taxed at all. As Americans save more money, the pool
of funds in lending institutions grows. When you add to
this the flood of capital currently trapped offshore, we
realize a huge increase in the pool of capital, thereby
causing the cost of borrowing funds to drop.
The FairTax dramatically increases
investment levels compared to
the current income tax system.
Investment is important to all wage earners because of
the relationship that exists between real wage rates and
the level of capital investment per worker. In fact, the
most significant contributing factor to achieving higher
real wages is the level of capital investment per worker.
A worker or farmer, for example, is more productive if
he has more machinery and equipment to work with,
particularly new equipment that incorporates the latest
technological innovations. Higher productivity leads to
higher real wages.
The FairTax dramatically increases
investment levels compared to
the current income tax system.
Investment is important to all wage earners because of
the relationship that exists between real wage rates and
the level of capital investment per worker. In fact, the
most significant contributing factor to achieving higher
real wages is the level of capital investment per worker.
A worker or farmer, for example, is more productive if
he has more machinery and equipment to work with,
particularly new equipment that incorporates the latest
technological innovations. Higher productivity leads to
higher real wages.
The FairTax dramatically increases
investment levels compared to
the current income tax system.
Investment is important to all wage earners because of
the relationship that exists between real wage rates and
the level of capital investment per worker. In fact, the
most significant contributing factor to achieving higher
real wages is the level of capital investment per worker.
A worker or farmer, for example, is more productive if
he has more machinery and equipment to work with,
particularly new equipment that incorporates the latest
technological innovations. Higher productivity leads to
higher real wages.
Foreign capital investment
will also positively impact
domestic wage rates and our economy.
After repeal of the income tax, the U.S. will be perhaps
the most attractive place on earth to invest, attracting
investment capital from around the world that will
finance new plants and create jobs here in America.
Foreign capital investment
will also positively impact
domestic wage rates and our economy.
After repeal of the income tax, the U.S. will be perhaps
the most attractive place on earth to invest, attracting
investment capital from around the world that will
finance new plants and create jobs here in America.
Foreign capital investment
will also positively impact
domestic wage rates and our economy.
After repeal of the income tax, the U.S. will be perhaps
the most attractive place on earth to invest, attracting
investment capital from around the world that will
finance new plants and create jobs here in America.
Interest rates drop.
Interest rates include compensation to the lender for the
tax that they must pay on the interest you pay them.
Under the FairTax, interest rates drop immediately and
quickly by approximately one-quarter toward the current
tax-exempt rate.
Interest rates drop.
Interest rates include compensation to the lender for the
tax that they must pay on the interest you pay them.
Under the FairTax, interest rates drop immediately and
quickly by approximately one-quarter toward the current
tax-exempt rate.
Interest rates drop.
Interest rates include compensation to the lender for the
tax that they must pay on the interest you pay them.
Under the FairTax, interest rates drop immediately and
quickly by approximately one-quarter toward the current
tax-exempt rate.
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Interest income, like all other income,
is not taxed under the FairTax plan.
Furthermore, there is no longer any need to track interest
paid on loans for the purpose of mitigating income tax
liability. Under our current system a deduction, when
applicable, allows taxpayers to make interest payments
from pre-tax dollars to the extent of their marginal tax
rate. Under the FairTax, people make all interest
payments from 100 percent pre-tax dollars.
Interest income, like all other income,
is not taxed under the FairTax plan.
Furthermore, there is no longer any need to track interest
paid on loans for the purpose of mitigating income tax
liability. Under our current system a deduction, when
applicable, allows taxpayers to make interest payments
from pre-tax dollars to the extent of their marginal tax
rate. Under the FairTax, people make all interest
payments from 100 percent pre-tax dollars.
Interest income, like all other income,
is not taxed under the FairTax plan.
Furthermore, there is no longer any need to track interest
paid on loans for the purpose of mitigating income tax
liability. Under our current system a deduction, when
applicable, allows taxpayers to make interest payments
from pre-tax dollars to the extent of their marginal tax
rate. Under the FairTax, people make all interest
payments from 100 percent pre-tax dollars.
The FairTax causes the
stock market to appreciate.
The value of corporate stock or a corporate bond is the
present discounted value of the expected future income
stream (net of tax) of the stock or bond. Thus, a stock’s
value or a bond’s value is a function of two things: The
expected future income from owning the asset and the
interest rate. The FairTax increases the expected future
return on assets and causes interest rates to fall 25 to 30
percent. Investors prosper greatly under this plan, since
corporations face lower operating costs and individuals
have more money to save and invest. The reform
significantly enhances the retirement savings and/or
retirement spending power of most Americans.
The FairTax causes the
stock market to appreciate.
The value of corporate stock or a corporate bond is the
present discounted value of the expected future income
stream (net of tax) of the stock or bond. Thus, a stock’s
value or a bond’s value is a function of two things: The
expected future income from owning the asset and the
interest rate. The FairTax increases the expected future
return on assets and causes interest rates to fall 25 to 30
percent. Investors prosper greatly under this plan, since
corporations face lower operating costs and individuals
have more money to save and invest. The reform
significantly enhances the retirement savings and/or
retirement spending power of most Americans.
The FairTax causes the
stock market to appreciate.
The value of corporate stock or a corporate bond is the
present discounted value of the expected future income
stream (net of tax) of the stock or bond. Thus, a stock’s
value or a bond’s value is a function of two things: The
expected future income from owning the asset and the
interest rate. The FairTax increases the expected future
return on assets and causes interest rates to fall 25 to 30
percent. Investors prosper greatly under this plan, since
corporations face lower operating costs and individuals
have more money to save and invest. The reform
significantly enhances the retirement savings and/or
retirement spending power of most Americans.
www.FairTaxNation.com
www.FairTaxNation.com
www.FairTaxNation.com