Top 10 Miracles of The FairTax
The following are benefits ALL Americans would realize under The FairTax.
1) Taxes of current tax-payers automatically cut by 30% just due to the fact that the tax base dramatically increases.
2) $500 BILLION dollars, or 1/5 of all tax-related current expenditures would be pumped back into the American economy EACH YEAR. And that is without a SINGLE budget cut! That is easily 4 times the size of ‘the Bush Tax Cuts’ without even cutting ANYTHING.
3) Social Security and Medicare become fully-funded. BANKRUPCY is avoided. The reason is simple – the funding problem is DEMOGRAPHIC and The FairTax completely eliminates DEMOGRAPHICS from the funding of these programs.
4) Criminals actually are made to pay Federal taxes. They eat and drink and buy fancy cars. Let them pay taxes like the rest of us!
5) The cost of retail products and services will see little or no increase, even with the Federal sales tax added. No longer will Corporate Income Taxes, lobbyist costs and vast tax-accounting expenses be embedded in the price of every American product and service. The FairTax will, however, for the most part offset those price decreases. Point is, there will be little overall increase in prices.
6) NO Federal taxes will ever again be withheld from any Americans paycheck. Not personal income tax, FICA, nothing. The average American will take home 20% more money to do with as THEY please.
7) It makes 100% visible ALL Federal taxation. If the Government wants to get more of OUR money, the ONLY way to get it is to increase The FairTax. There is no confusing multiple tax classes where they can hide tax increases.
8) The truly POOR will be completely DE-TAXED. For those spending to just get by at poverty-level, The FairTax prebate (which applies to EVERY American) will completely offset the sales tax. This represents REAL aid up the economic ladder to the most unfortunate among us.
9) As specified in The U.S. Constitution, DIRECT Federal taxation would cease to exist. That taxation would be determined by what Americans chose to do with their money, not directly confiscated from them as they earn it.
10) It frees American businesses from making TAX decisions and instead lets them concentrate on BUSINESS decisions. American businesses can compete effectively anywhere in the world, but not with the ever-increasing TAX SHACKLES imposed by our own government
The leading candidate proposal for completely REPLACING the Federal Tax System is the Fair Tax, introduced in the House of Representatives as HR25. Opponents (mostly politicians, tax lobbyists and criminals) are scared to death of it and will lie about it all day.
The Fair Tax WILL
1. Get America back more in line with the ideals the Constitution originally laid out; that taxes should be levied against voluntary expenditures that any citizen makes by his or her own choices.
2. Directly address the negative consequences Americans have had to endure as a result of Income Taxes.
First let’s define the TWO (2) general rules that make up the entire proposal (to replace 60,000 pages of Tax Code). And I urge anyone who thinks I’m misrepresenting these TWO (2) rules to find in HR25 where I am wrong and please let me know.
Rule 1: 23% of the cost of all new, retail products and services will go to the U.S. Treasury as a National Retail Sales Tax. What is NOT considered a retail purchase? Used items, businesses expenses, investment expenses, educational expenses and basically anything not CONSUMED by an individual consumer.
The main impact of this aspect of the FairTax is that YOU decide through your own choices when you pay Federal taxes, rather than the IRS confiscating 20 – 30% of your paycheck as under the current system. And everyone who decides to consume at the retail level pays this tax, whether they are poor or wealthy, an illegal alien, or a criminal.
Rule 2: The fair tax is FAR more progressive than the current system because every American is in effect forgiven the first 100% of all sales tax attributed to poverty-level spending. Simple math guarantees that effective tax rates that now range from 15% to 35% will FALL DRAMATICALLY into a 0% to 23% range. Every American is treated the same. No loopholes, no special tax breaks.
No American would pay a dime in Federal taxes for the ‘privilege’ of maintaining a poverty-level lifestyle. That should be considered IMMORAL. To live the American Dream is voluntary; we should pay our taxes on that choice. To live at poverty-level should NEVER be considered the American Dream; we should not tax those unfortunates.
No piece of legislation ever introduced in The American Congress would directly benefit EVERY law-abiding American citizen more than The FairTax.
See Income Tax Evils to see why The FairTax is so desperately needed to address the inefficient stupidity of the U.S. Income Tax Code.