Fair Tax And Jackson Mayor In Studio For Open Forum
Would the possibility of not paying Federal Income or Payroll Tax be appealing if it meant 23% sales tax on all item? What about a plan by the third largest municipality in the state to transform itself into a hub of economic development?
Those were some of the topics discussed during WOBM-AM’s Open Forum Tuesday at 7pm.
Acting President of Fair Tax New Jersey and Brick resident John O’Rourke was in studio to speak about the “ins and outs” of the Fair Tax structure which has been in debate within the House and Senate.
Under the Fair Tax structure, Federal Income and Payroll taxes are eliminated, and a 23% percent universal sales or consumption tax is enacted on all new goods in its place.
O’Rourke says in addition to the two main taxes (Payroll & Income) a Fair Tax Structure would also eliminate the Capitol Gains, Death or Estate, Gift, Self Employment, and a total of nine federal taxes would be gone.
Additionally O’Rourke adds citizens would have more money in their pocket because in addition to keeping more of the money they earn, the head of every household would receive a monthly prebate to cover sales tax on basic necessities.
The amount given every month would be based on the federal poverty level and how many members are in a household. O’Rourke gives the example that for a family of four, the poverty level is 25,000 and 23% of that is $5750. Meaning the family would receive a monthly check of 479.17 a month.
“It doesn’t cover the cost of the item, it covers the cost of the tax on that item.” Says O’Rourke.
He says it would also ultimately save people money at the register as well. Saying even though the tax would be substantially higher, companies could take out the cost of the embedded taxes they currently do.
When asked about whether companies would pocket the money for themselves, O’Rourke says the free market would solve that problem.
“Competition is going to force the person the selling the Chevrolet not to put to it in [their pocket] because otherwise they would go and buy it at another Chevrolet dealer or a Ford.”
Jackson Township Mayor Michael Reina also was live in studio to talk about what has been happening within the municipality.
Reina said the Township recently put together its annual budget which as it stands right now is under a one percent increase from last year, well under the governor’s two percent cap.
Additionally Mayor Reina says the township is trying to showcase itself as a hub of economic development by demonstrating the uniqueness of the 195 corridor which runs through Jackson and has three different exits. He hopes that by using that corridor, combined with the size of the Township, will create a positive business atmosphere.
“We’re going to market Jackson in a way that’s different than a lot of other townships. The reason being we have three exits on 195 that takes the commercial aspect out of the residential neighborhood.” Adding trucks and construction can come in and out with relatively little disturbance to the large residential population.
He notes the Townships efforts are already not going in vain, noting the show Today in America called Jackson expressing interest highlighting the township as one of the best places to “live, work, and play.”
Reina says the project takes advantage of what the township already has to offer and creates a great economic climate for its residents and those throughout the state, namely by bringing in local jobs.
“It brings commerce; it brings stability to what people have lost sight of. Everybody is worried where there next dollar is coming from why not work where you live.”