What we DO know about the

What we DO know about the (so-called) "Fair Tax"

Petition language has been approved clearing the way for petitions to be circulated to put the issue of the "Fair Tax" on the ballot in November. It is a lengthy and very complicated proposal, and many people are examining the language to determine just what it means. People from the Treasury Department as well as many groups that study these and other tax issues are still in the process of "figuring out" some of the more elusive details; but

Some things are perfectly clear !

	Everyone will pay about 10% tax on food and prescriptions, items on which there is NO sales tax no
	There will be a sales tax on virtually ALL services - even where there is NO tax now
	About $2.2 billion in taxes now paid by businesses will be shifted to individuals
	The language is written in a way that the 9.75% sales tax rate could increase automatically - without a vote of the citizens OR of the Legislature
	Home sales will be taxed at 9.75 % - and probably more later
	Seniors will lose the advantage they now have because they will lose the double exemption they have on income taxes
	All Michigan citizens are likely to see an increase in their Federal Taxes because we will lose deductions (sales taxes are NOT deductible on our Federal taxes).

Circulators will probably approach citizens with the lead-in: ^"Would you like to sign a petition to eliminate your state income tax?" This proposal would, in fact, do just that; but it increases the sales tax by over 60% to make up the difference, and shifts most business taxes to individuals by expanding sales taxes to many items on which we now do NOT pay ANY sales tax.