RINO Congressman Joe Schwarz (MI-07) recently attacked his Republican primary opponent, Tim Walberg, for Walberg's support of the Fair Tax.
Schwarz's campaign journal included the following:
"With a new, national sales tax on all goods and services, a bicycle that costs $69.99 would cost $86.08."
"YOU’D HAVE TO PAY A NEW NATIONAL SALES TAX OF 40 PERCENT!"
It's amusing that the Schwarz campaign is so desperate to win back the taxpayers in his district that he's trying to brand Walberg as a tax hiker. But his attacks just don't hold water.
The Fair Tax is a comprehensive reform of the way Americans are taxed by the federal government. It does away with the present cumbersome and complicated income tax and all other federal taxes in favor of a national sales tax. Economists predict that the Fair Tax will supercharge the economy due to its simplicity, the absence of taxes on savings, and its flat rate. And the Fair Tax also incorporates a pre-bate so that all Americans can afford basic necessities.
Instead of raising taxes, the Fair Tax will lead to a huge tax cut for Americans. What's more, Americans will save $265 billion per year in compliance costs.
A bicycle that costs $69.99 today will not cost $86.08 if the Fair Tax is implemented. That's because a huge chunk of today's price has built-in corporate taxes. In addition, because every American would not pay any personal income, Social Security, or Medicare taxes, your paycheck would go a lot farther than it would today.
Joe Schwarz is wrong about the Fair Tax and wrong about Tim Walberg. But I wouldn't expect anything less from a guy who the National Taxpayers Union gave a C- (47%), good enough to be in the bottom 4% of the GOP conference.
Donate to Tim Walberg's campaign HERE and send liberal Joe Schwarz packing.
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