Under the Fair Tax plan, you keep what you earn. Income taxes and payroll taxes will no longer be withheld from your check. Self–employed people will no longer be subject to income and self–employment taxes. Every employee will receive an automatic raise, at least 12%, as high as 22%.

Since employers will be freed from payroll, income, and corporate taxes, they will have more to invest. Given market forces, they may invest in higher wages, capital improvements, new equipment, or technological innovations.

Economic models predict that under the Fair Tax plan, the US economy will be healthier. Some predict a 10–14% growth in ten years. This is partially because the money spent complying with the IRS and the Tax Code now could be directed to more useful pursuits. The productivity and competitiveness of our industries will increase. Higher productivity means higher wages.

For more information: www.fairtax.org or call 1-800-FAIRTAX.

(Next week: What about foreign

competition?)