Fair Tax Benefits All Americans
The Fair Tax Legislative package HR25/S25 is in full Legislative form and waiting in the Halls of Congress with 47 Co-Sponsors signed on and a total of 155 Legislators leaning in support according to the FairTax Scorecard. Many Legislators were waiting for the President's Tax Panel report before committing to any tax reform plan. For many in Congress the Tax panel's Report received a failing grade as it did not meet the goals set down by the President. The President's goal was to "simplify the tax code in a way that is fair, does not raise or lower the overall tax burden and better promotes "long-run economic growth and job creation."
The Tax Panel Report tinkered with the edges and eliminated Home Mortgage deductions but did not take the broad approach as the President laid out. Congressman are now free to support a real reform plan.
The Fair Tax meets those goals set by the President and much more according to supporters.
From Fair Tax Thumbnail :
The FairTax proposal is a comprehensive plan to replace federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax proposal integrates such features as a progressive national retail sales tax, dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. Included in the FairTax plan is the repeal of the 16th Amendment to the Constitution. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
The Fair Tax Legislative package is based on the work of Americans For Fair Taxation (AFFT) they have spent almost 10 years in developing and researching an alternative to our archaic income and payroll tax system. Americans For Fair Taxation (FairTax.org) is a non-profit, non-partisan, grassroots organization dedicated to replacing the current tax systems. The organization has hundreds of thousands of members and volunteers nationwide. Its strategy supports sound economic research, education of citizens and community leaders, and grassroots mobilization efforts.
Many other organizations support the Fair Tax Legislation or similar Consumption tax as well, including the National Taxpayers Union (NTU), Citizens against Government Waste, American Farm Bureau Federation, 60 Plus Association, National Small Business United, Associated General Contractors, Association of American Physicians and Surgeons, and many more.
Alan Greenspan and 75 other Economists have stated publicly that they support replacing our income tax system with a Consumption tax. Alan Greenspan said before the President's Tax Panel that a 6 month transition would be preferred so that the economy and business could adjust to a new system.
The fairtax.org web site covers many of the details and provides a long list of over 40 FAQs which quickly answer most questions people have when they first hear of this Legislative package for tax replacement. The Web site also have detailed research papers and Rebuttals to the few economic critics who often misquote what the Fair Tax is and misrepresent the specific features of the Legislation.
Its Time to Bury the Old Code and Bring in the New.
Some of the benefits of the Fair Tax have been boiled down to a top ten list of Economic benefits with links to articles which explain in more detail the background and the research.
Top Ten Economic Benefits of the Fair Tax Legislative Package HR25/S25
1. Supported by Alan Greenspan and 75 other Economists and Economic Professors. They all support a consumption tax as better for America than an income tax.
2. Removes the most regressive tax on the poor and middle class- the payroll tax. Provides a broader based tax for Social Security and Medicare. The Fair Tax also replaces the personal and business income tax, AMT(Alternative Minimum Tax), death tax, capital gains tax and investment taxes.
3. Removes business income and payroll taxes resulting in a drop in prices by 10 to 15%. Saves an estimated $250 to $400 Billion annually in unproductive tax compliance costs.
4. Eliminates the cumbersome IRS Tax code and replaces it with a National Sales tax of 30%(income tax equivalent of 23%). With price drop consumers pay about the same. Under the arcahic Income and payroll tax a middle class family had to earn a gross pay of $148 to bring $100 Home. Under the Fair Tax you bring $148 dollars home and with a minimum 10% price drop that same $100 of Goods costs you $90. Add the Sales Tax your new total is $117. You net $31 extra.
5. Fights outsourcing; increases Manufacturing and business growth back in America. Boosts Economic Growth an estimated 6 to 10% in the first year. Increased job growth.
6. Reduces the trade deficit because exports will not pay the sales tax and be 10 to 15% cheaper for sale overseas. Leveling playing field with low wage countries. (Unions should support)
7. US shores will be the most competitive corporate tax -free zone not the Bahamas. Corporate headquarters and many other businesses can return to US soil and be more competitive. Investment capital will flow and American Based business and jobs will grow.
8. Average working families take home 100% of their paychecks, no Federal income tax or payroll deductions. Average family of 4 making $50,000/yr takes home $5,000 more.
9. Families have more Spendable income for Health Insurance, Childcare, College tuition, and Private retirement Savings accounts. It’s their choice for their family. “Ownership”
10. Fair Tax package is revenue neutral and Progressive with a Prebate of Sales tax up to the Poverty line of spending. Family of 4 gets $492/m. Couple receives $367/m. No receipts no complicated filing for refunds. A refillable monthly debit card to cover Sales tax on all purchases up to the poverty line of Spending - Family of 4 HHS sets in 2005 at $25,660- Prebate is $492/m
The Fair Tax is revenue neutral, progressive and fair. Net tax rate for the Poor at the poverty line is 0%, for the middle class at twice the poverty line is 11.5%; for 4 times poverty line 17.2% and the more you spend your net rate is between 20 and 23%.
Time to sweep out the old code and bring in a fairer and simpler system forAmerican Families, American Workers and the American Economy.
Tax Reform with far less pain and much more gain in One Legislative package HR25/S25.
posted by Merrill Bender | 9:56 AM
1 Comments:
It is easy to get the ball moving on this... just boycott the income tax and the politicians will rush to support the fairtax when the well begins to run dry.
Tell every hard worker or capitalist that you know to boycott the income tax.
It's already underway.
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