2 the michigan fairtax replaces current 6% sales tax on goods. michigan 4.35% personal income tax...
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The Michigan FairTax Replaces
Current 6% sales tax on goods.
Michigan 4.35% Personal Income Tax (PIT)
Michigan 6% Corporate Income Tax (CIT)
Business Personal Property Tax (PPT)
6 mill State Education Tax on business (SET)
Sales tax on business purchases
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The Michigan FairTax
Replaces Michigan Personal Income and Business Taxes with a 9% sales tax on new goods and services.
Lowers the cost of goods and services produced in Michigan by removing the cost of business taxes that are hidden in today's prices. This improves competitiveness creating Michigan jobs.
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The MI FairTax Accomplishes
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The Michigan FairTax Base
MI FairTax taxes citizens directly and honestly with a visible retail sales tax
MI FairTax is NOT imposed on:– Business to Business sales– Non-profit organizations
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The MI FairTax Accomplishes
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Special Provisions
Prebate to all legal Michigan residents to pay tax on the necessities of life
– MI FairTax is Progressive --- Households at the poverty level have a zero tax rate
– As spending increases the effective tax rate increases
– Effective Tax Rate for the typical MI family of four is 2.5% after prebate and untaxed items
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Special Provisions – Prebate
Michigan FairTax Prebate: 9% Tax Rate Family Annual Annual Monthly
Household Size Consumption Prebate Prebate
Allowance *
1 Adult $11,170 $922 $77
+ 1 other person $15,130 $1,249 $104
+ 2 other persons $19,090 $1,576 $131
+ 3 other persons $23,050 $1,903 $159
+ 4 other persons $27,010 $2,230 $186
+ 5 other persons $30,970 $2,557 $213
* The annual consumption allowance is the amount of spending that is "untaxed" under the Michigan FairTax. Prebate equals the Michigan FairTax included in the federal poverty level guidelines by family size. Poverty level guidelines as provided by the U.S. Dept. of Health and Human Services, January 26, 2012.
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Effective Tax rates
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Compliance/Tax Evasion
Easier tax enforcement– 90% fewer tax filers. Only retail businesses file a
sales tax return.– Taxes the underground economy (illegal drugs,
illegal labor, prostitution, etc.)– Over 4.4 million personal returns filed in 2009
The simpler MI FairTax encourages compliance and is difficult to avoid
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The MI FairTax Accomplishes:
Eliminates all tax loopholes
Eliminates the buying and selling of tax favors for special interests that today corrupts our political system
It makes our true tax burden visible on every sales receipt -- not hidden in the prices of the things we buy
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The MI FairTax
Simple
Efficient
Fair
Promotes Business
Simulates Michigan’s Economy
Creates Jobs!
Fuel the message!
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What do we want from you?
Go to our Web Site www.mifairtax.org and download our MI FairTax flyer & other info
Get involved. Contact your local MI FairTax Representative via the web site, and volunteer
Invite a MI FairTax Spokesperson to speak to a group or the media in your community
Ask community leaders and friends to advocate for the MI FairTax
Make a Financial Contribution to the MI FairTax