Tuesday, April 7, 2015

The Fair Tax is the Correct Tax Reform

___The FairTax Act of 2015 is 131 pages long. It is a simple one step flat sales tax at the cash register. It would replace the income, payroll, corporate, gift, estate, capital gains, and alternative minimum taxes. These taxes require over 72,000 pages of laws and regulations. The IRS and tax audits will be unnecessary! The competing "flat tax" keeps both.

___The FairTax, HR25, S155, repeals income, payroll taxes, etc and phases out the IRS. These taxes are replaced by a national tax on all services and new tangible goods sold at retail in the United States. There is no tax on used goods, so yard sales and flea markets are not affected. There is no tax on business-to-business transactions or on exports. Lawful residents receive a tax-cancelling allowance (prebate) for essentials.

___The first part of the Fair Tax is the repeal of the 16th Amendment. Since sales taxes are regressive, the Fair Tax automates prebates to everyone for necessities.

___Congress does not want the Fair Tax. Their power comes from shielding friends from taxes and punishing enemies. Americans are allowing the federal government to control their lives through this social engineering. Our most sensitive personal information is collected by force at least each year and is vulnerable to loss and misuse.

___The Fair Tax is not a new idea. It has been studied and debated for decades! Reports by the Tax Policy Center indicate that 16-20 percent of taxable activity escapes current taxation, so the revenue will be higher, and the rate for everyone can be reduced.

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