It is so strange that liberals just don't get this. They are the supposed defenders of the poor and middle class. Yet, when a plan comes along that completely eliminates the federal tax burden on those living at or below the poverty line those same libs can't be bothered with the truth. Ditto for helping the middle class.
What makes the FairTax unique is the $22 million in research spent to figure a way to make it progressive, and not regressive. Nearly all sales taxes hurt the poor more than the rich, no question about it. But if you will take the time to learn about the FairTax you will discover it does just the opposite.
First off, take home pay will increase by at least 27 percent under the FairTax. That's because all existing forms of federal taxation on income go away. Second, every head of household who has a Social Security number will receive an advance payment on the first of each month. That payment will offset taxes they'll pay in that coming month, at least up to the poverty line based on their family size.
Because of that advance payment (rightly called a "Prebate") taxes for the truly poor will be zeroed out. Under the FairTax, the more you spend on new goods and services, the more tax you will pay. For those spending up to $100K or more, the Prebate results in much lower federal taxes than they currently pay. For those who spend in the millions, their tax burden will be at or near the full 23 percent.
On top of all this, there is no FairTax on used goods, be they cars, houses or jeans. Education too is exempt. And yet, had the FairTax been in place these last three years, it would have raised more revenue for the federal government than did the present income tax system.
How can that be? The tax base is broadened. No one is exempt. There are no loopholes for special interests. People who have never paid taxes -- be they in the $1 trillion underground economy of drugs and crime, or those who have exploited current loopholes -- will pay their fair share every time they purchase new goods or services.
The FairTax – Absolutely Fair
Imagine deciding if you can afford to pay your taxes. Under the FairTax, taxes are paid only for new items. Therefore, people decide if they can afford to purchase a new item and pay a sales tax or instead, a used item and pay no tax. Compare that freedom with our current system that forcibly taxes income from all sources including requiring withholding of those taxes throughout the year. That should be an easy choice.
On so many levels the Fair Tax is superior to the income tax. On the philosophical level, why would you prefer taxing (punish) production instead of consumption? On the economic level, instead of spending billions of dollars and man-hours each year on income tax preparation it would be taxed by a system already in place in businesses. I could go on and on, but you see the picture clearly works in favor of a consumption tax to replace the income tax.
The income tax only taxes those engaged in legitimate enterprise. The Fair Tax will tax the ill gotten gains of drug dealers and all those who deal in cash when they spend that cash. The 141 page Fair Tax bill will replace the 72,000 page income tax code and abolish the IRS.
It puts everyone on a level playing field. Doesn't matter if you're an illegal immigrant or a super-rich guy, you pay it. But you also have a choice in the matter. It will help businesses because they won't have to pay payroll taxes. It doesn't unfairly penalize the poor because of the probate. It's hard to see a loser here. Oh, and no more lobbying for this industry or that.
Most important is that the FairTax takes power out of Washington and places it back in the hands of the people. No more raising taxes by hiding it in misnomered legislation. It also totally un-taxes the necessities of life. It gets rid of the multi-billion dollar funded IRS, encourages corporations to locate in the U.S., and brings trillions of dollars stashed outside the country back.
Other reasons include the fact that it makes the tax you pay very apparent. Every time you buy something you see exactly how much tax you are paying. Under the current system, there are so many layers of taxation on everything you buy of which you are completely unaware. This drives the cost of those items much higher than they would be otherwise. There are many more reasons that the Fair Tax is superior to what we have now, but one more I will mention is that only people pay taxes.
You may levy an income tax on a business or corporation, but then it merely becomes part of their cost of doing business which they pass on to their customers in the form of higher prices. If you do not put the tax on the business or corporation, they can sell their products and services at a lower price and perhaps keep more income for themselves which they will then spend and thus pay more tax. I believe the Fair Tax would be the most fair taxation system possible and would be a huge boon to the economy.
Eliminates many taxes, simplifies the tax code, and allows one to keep their entire paycheck all while still being revenue-neutral. In addition you get a pre-bate for spending each month which is very similar to itemizing on a tax bill. Taxes drug dealers, illegals and the cash market as well.
Our Founding Fathers made it UNCONSTITUTIONAL to tax our Citizens on their income. They were adamant about this based on their knowledge of and experience with the British feudal system. They KNEW what they were doing! Why would men of good intentions ever seek to change such a provision designed to protect a citizenry from potential tyrannous acts? The answer is, MEN WITH GOOD INTENTIONS WOULD NOT!
I do not want my government to know how much I make and where I make it, how much I save and where I save it, how much I spend and where I spend it, how much I invest and where I invest it; it is simply none of their damn business.
The Internal Revenue Code is simply a contrived process conceived by evil men who want to use its powers to control the money and behavior of "We the People". The Internal Revenue Code is NOT about collecting monies for the purpose of paying the operating expenses of our government, for if it was the system would be much easier to administer, much less costly to operate, more efficient, more transparent, fairer and would not be abusive to the citizens of this Country.
However, there is such a system that would comply with the intentions of our Founding Fathers, would be much easier to administer, much less costly to operate, more efficient, more transparent, fairer and would not be abusive to the citizens of this country. It is called THE FAIRTAX.
THE FAIRTAX MUST BE PASSED WITHOUT FURTHER ADO.
With passage of the FairTax Washington politicians will no longer be able to sell tax breaks and create loopholes to the highest under the table bidder. No more 70,000 pages of incomprehensible IRS code, regulations, procedures that ensnare thousands of taxpayers in bureaucratic nightmares. No more politicians using the tax code to punish their "enemies" and rewarding their friends. No more use of the audit functions of the IRS by politicians to put the fear in the hearts of their opponents.
Elimination of the IRS and eventual repeal of the 16th Amendment will return economic freedom to every citizen of this land. We can do this, we must do this. It is time we stop taxing income. The income tax is a Marxist tool to enslave the citizens, to control, to manage them. If you do not believe me just read Das Capital, available at any library or bookstore, even Barnes & Noble and Amazon.
Check it out for your self, learn about the FairTax yourself. Don't rely on secondhand information. Check our WWW.FAIRTAX.ORG
DOUG - OREGON
The FairTax would replace all federal taxes with single federal sales tax on retail sales. The sheer size of the tax (it would 23% in the first year and adjusted according tax receipts in the following years) would make it hardship on the working poor and middle class Americans. Since consumption decreases as percentage of income it effectively lowers the tax rate for the wealthiest wage earners.
No, I believe that FairTax is not better than income tax and that FairTax attacks the people deemed to be in poverty while giving cutbacks to the wealthy. I think that the current system of using income tax and setting aside a percentage of your income to be given to the government is much more fair nowadays.
I think that, while the Fair Tax is a new idea that is worth looking it, in reality it is not something that I have very much interest in. I do not like the idea of a national sales tax being set at a rate of 23 percent. That is very high.
In 1983 the Grace commission report suggested that not one dime of the current income tax goes to fund anything related to government services, and the sole beneficiary is the Federal Reserve System! The Federal Reserve has been exposed as a private bank owned by international players, whose primary interest is expanding their pockets at the expense of nations it conquered through their fiat currency and various tax schemes! The expansion of these tax schemes includes Social Security, Medicare and now the new Obamacare tax! The vehicle of these international bankers is communism, and an income tax is the 2nd plank of the communist manifesto, a central bank being the 5th plank! In 1913 the Federal Reserve, the 16th Amendment and Income tax were all put into place at nearly the same time by this banking cartel, sending America down an alternate path away from liberty! This central bank loans the American government and affiliated branch banks credit called "fiat" currency or "legal tender" which they create out of thin air and charge interest! They loan this fake credit out under a "fractional reserve" policy, where 10 times or more the amount is loaned out than is kept in hard cash! They also confiscated much of the gold of America and many other nations in the process of converting the US money system into the US debt system! The income tax basically pays the interest on the debt system! While it sounds like a good idea under the premise that America needs a "revenue neutral" alternative to the outdated income tax the hard reality is that America's wealth while keeping the beneficiary the same and reducing the costs of paperwork and audits, the Fair Tax becomes a bait and switch plan that will for once legalize a tax that was otherwise illegal! The basic problem with both the FairTax and Income tax is one of necessity--Isn't that the real fairness issue? While much of the research funded by the Fairtax group makes claims of job growth under their plan, how do those statistics add up to a reality of the US "silver" dollar certificate being replaced by a counterfeit "legal tender" currency that is increasingly losing its value under the Federal Reserve's ever expanding fraud system? Isn't it time for America to get wise to the constitution and follow that instead of all the gimmicky bills that ultimately lead us down the same slippery slope we've been on for the last 100 years! There are former IRS whistle blowers and tax researchers that have exposed all of this! I would highly suggest that all current volunteers of the Fairtax movement stop listening to the propaganda of the Fairtax bill and stop being conned so easily! Read such things as Irwin Schiffs book "Federal Mafia", G Edward Griffin's "Creature from Jekyll Island or watch the film by Aaron Russo "America, Freedom to Fascism," and Ron Paul's book "End the Fed." The only fair replacement for the Income Tax is "NOTHING!"
The Federal Reserve OWNS our monetary system! They converted the once American MONEY system controlled by Congress and Treasury to a DEBT/CREDIT system of counterfeit currency. The Income Tax serves them, and it is well established that these taxes collected do not go to fund Federal Government Services. The Federal Reserve is a private, offshore banking cartel and is neither federal nor has any reserves! This is rearranging chairs on the deck of the Titanic and calling it new!