Understanding the Fair Tax

[Warph]

"The tax code is a disaster and so complex that no American can understand it. The time for fundamental reform is now."
– Former IRS auditor, Don Cohen



Okay, Obama, it's clear to me.  It's time for a change—it's time for the FairTax.  The current income tax system is broken, (broken like your new Treasury Secretary.....)  It's complicated, easy to evade, and unfairly burdens the lower and middle classes.  And, attempts to fix it only make it worse.

 

The FairTax is Fair:
It replaces the federal income tax system—which taxes what we earn—with a consumption tax—a tax on what we spend. With the FairTax, the less you buy, the less you pay in taxes; the more you buy, the more you pay in taxes. So everyone pays fairly when they choose to spend.

 

The FairTax:
*  Makes sure everyone pays their fair share by closing loopholes.
*  Allows you to keep 100% of your pension and pay checks
*  Untaxes the poor with a rebate on the necessities of life
*  Protects Social Security and Medicare
*  Stimulates investment, economic growth and job creation

 

The FairTax is Simple:
*  NO Tax Filings
*  NO Loopholes
*  NO Hidden Taxes

 

The FairTax is Transparent:
*  Americans will see and clearly understand what they're paying

I'm on the Fair Tax Bandwagon
For the life of me, I cannot understand why more Americans are not pushing for the Fair Tax or a similar revenue collection system.  Do they not understand there are two sides of the ledger:  revenue (income coming into the government with our tax dollars) and expense (what they decide to spend the money on).  We need to change the revenue side by collecting taxes on a fair, predictable basis:  the fair tax. 

Consumers, all consumers...that means anyone that buys something, would pay a national consumer tax.  Currently that tax is predicted to be 23 cents per dollar.  Businesses have already included in the price of the goods we purchase, like food, clothes, gas, etc. the amount of tax they need to turn around and pay the government and the cost of hiring individuals to make sure they are in compliance. 

Cost of goods and services could actually be reduced if companies didn't have to pay taxes (including payroll taxes), and you would have 100% of your paycheck...including the amount currently taken out for payroll taxes, etc. 

Also, every family with a social security number for each family member would get a check each month, based on family size (married, 2 children, etc.) to help subsidize famiilies up to the establsihed proverty level (this is called a "prebate).  So, you don't have to spend your life accumulating receipts, W-2's, etc. or trying to figure out if you get a deduction for something...you've paid as you go when you purchase goods and services with 100% of your paycheck. 

WOW!  No more tax filings, IRS letters and heaven forbid, we might just find companies hiring people, new companies being established and jobs moving from overseas to the good 'ol USA!


So Why Aren't American's Angry? 
How many Americans like paying taxes?  How many try to figure out ways not to pay taxes?  How many people have dreamed of opening their own business but can't because of the high start-up costs (at least a third being taxes)?  And, instead of addressing the core issues that drive business away from America, push corporations and individuals to look for loopholes in the tax system, and creates an environment of transparency on the revenue side of government; our government comes up with yet one more way to stimulate the economy!  Debt upon debt does not equal economic independence; but dependence.

Has anyone thought of how many small businesses would start or expand if they did not have to pay the substantial tax burden currently imposed by the much out-dated tax code?  Seventy-nine percent of new businesses are small businesses.  Why isn't the US Chamber of Commerce pushing for abolishing the tax code and implementing FairTax or a similar based revenue system?  Why are corporations not behind FairTax 100%?  Imagine the jobs that could be added to our economy!

The time is now for Americans...this NOT a partisan issue...it is an American issue.  We will not remain an economic power if we continue to sell-out our country.  Long-ago there was a tea party over taxation.  These individuals were angry over UNFAIR taxation.  And, here we are in 2009, losing jobs, not because of labor costs, but because our tax system places an unfair burden on all capital and labor.  A true consumer tax, like the Fair Tax is revenue neutral.  Current services such as Social Security and Medicare are still funded.  "Prebates" a monthly check helps all Americans up to predetermined poverty level to subsidize costs of basic items like food and clothing. The chcek is based on family size not income level.  The government doesn't need to know what you make or don't make.   Obviously a consumer tax captures revenue not currently being received, and eliminates all loopholes and fanagaling that comes with filing a tax return.  We would eliminate most of the IRS (not a small expense!), while allowing all individuals to decide how to spend or save 100% of their paycheck.

[redcliffsw]

When our forefathers fought against unfair taxes, they eliminated them.
Other than a few people like Ron Paul, there does not seem to be much
enthusiasm to eliminate federal taxes.  Cause why?

[Catwoman]

Taking away monies would cause the monster known as government go have to lose unneeded weight...I've always noticed that the government takes care of itself first...After all...in this day and age where people are losing their jobs by the thousands...Has anyone with a goverment position been forced to have to forego their COLAs?  Has anyone in Congress been forced to give up any of their perks?  If we were to force the government to have to live like the rest of us, we could save millions of dollars.

[Varmit]

I don't know. I see this as rehashing (in a sense) of what we have now.  Simply put, the more money you have, the more you spend, the more taxes you pay.  How is that different then what the government is trying to do now by putting more of the tax burden on people with higher incomes?  Why not have a simple flat rate of something like 20% income tax. Thats all income earned and unearned-annunities, stocks, bonds, everthing.  And while we're at it eliminate the sales tax, get rid of government programs that pay people to NOT work, pay farmers to NOT plant crops, and that give out assistance while asking for nothing in return. You would only need a one page tax return and a check for 20%.  While I don't like paying taxes any more than anyone else, I do realize that the government need money to operate on.  Things like the postal service and greatest military on earth I'd kinda like to keep around.

[Wilma]

We used to talk about this with a 10% tax.  Now, inflation has doubled it to 20%.

[Catwoman]

Shoot...I'd be happy with a flat 20% tax...Currently, with some of the endeavors that I'm involved in, I'm paying 40% right off the top.  I'd be walking in tall cotton with only 20% taken out! 

[Diane Amberg]

Be careful what you wish for....that would mean no deductions or exemptions of any kind. I wouldn't mind a flat tax either. I'm sure foreign visitors would want their taxes back too, just as I got my British VAT taxes back.  We'd still have "fees'' out the kazoo. I'm waiting for states to institute a mileage fee instead of a gasoline tax, to pick up electric and gas vehicles as we get away from gasoline.

[redcliffsw]

Flat tax?  Why do we want to build a bigger federal government?
Why not create a more limited government as our founding fathers established - right?

[Diane Amberg]

How would a flat tax= bigger government? I doubt people really want to get rid of all government services...if they stop to think what those services are. We have the problem going on here too. Our county is suddenly very short of money.The County Executive has been asking what people want to do, lay off workers, cut services and hours or raise taxes. Almost everyone agreed to raise taxes. It won't make government bigger, it will just keep things as they are.

[redcliffsw]

The flat tax will provide greater access to money for the Feds.

There's a county commission here in KS that has their commission
meetings on the TV sometimes.  Those so-called local "conservative
Republicans" are big spenders and they ain't slowing down on their spending
while looking for more sources of revenue.  Some counties are even looking to
gambling to save the day - or fer more money - meanwhile our jobs
disappear and we buy foreign made stuff to continue on our merry way.

I think it was Pres. Nixon who started the "revenue sharing" with the
local gov'ts.  It's still growing.