The prebate will be sent out each month to cover the cost on taxes up to poverty level spending. This could be done electronically into a credit account (several major credit card companies have expressed interests in even covering the cost incurred by the government).
The prebate ensures that those who do not have the ability to pay are not taxed or taxed at a lower level than those who have the ability to pay. For instance a family that would spend at twice the poverty level would incur a taxation rate of 11.5%. Those who spend no more than the poverty level would have a taxation rate of 0%. Those who spend more will be taxed at a rate that will come infinitely close to the 23% tax rate. The prebate ensures a progressive form of taxation is maintained and helps foster savings and investments by effectively giving the individual the control over their tax rate level.
Why not just not tax food and other necessities instead of issuing the prebate? The answer is simple. Those who have the ability to afford more will do so giving them tax reductions on things that are no longer necessity but luxury.
The FairTax is not a regressive form of taxation. No non-citizen would be eligible for the prebate.
Moving the Burden off of US Citizens?
The FairTax because it is a nationalized sales tax and not based on income or investments will then tax every foreign visitor, illegal alien, and even the black market economy of drugs, prostitution, and the like. How? The FairTax is a nationalized sales tax meaning that every new item purchase is taxed. Stores don't ask to see ID's, passports, or as to see where you are working.
Earnings are not reported and therefore privacy is ensured.
Those who were not previously taxed for their income because of legality of the profession or because they were aliens to the country suddenly are being taxed.
No More April 15th HeadachesBecause taxation would be a national sales tax and not based on income there would be no more tax day. No more countless hours crunching numbers, no more wasted money to pay advisors or software to file your taxes, and no more stress. Best of all you would not have to validate the government deductions or be subject to a tax audit making you waste more of your time and remove your privacy.
Each year you would file a single sheet with the government with updates on bank or address information, the number of dependents living in your household, and the Social Security number for purposes of the prebate. No non-citizen would be eligible for the prebate.
FairTax: More Power to the People
Political commentators and news agencies always purport the idea of letting the people speak up. In all honesty though we have few avenues for recourse and politicians seem generally unwilling to listen. The FairTax solves that problem too. If Americans do not like what the government is doing and want to help change its course all you have to do is reduce your spending and put the politicians back into their place. That is a representative for their constituents not looking after their own self interests.
The FairTax gives power to the people to determine their own tax rate and truly get ahead by removing the punishments the current tax code instills. More power, more control, and a fair tax code.
Best of all the FairTax upholds the original principles the Constitution without a separate amendment. You have your right to be secure in their papers that the 4th Amendment provides. Since as originally written the Constitution is a limit on governmental power not the people this is a movement back to the original founding principles of our country.
FairTax Benefits
In addition to the benefits I described above the FairTax has several other benefits. Since America will no longer have a corporate tax, the United States will become the ultimate tax haven for corporations around the world. Corporations will be flooding into this country starting a landslide of economic growth that has not been seen in decades and would rival China's economic growth of the past 3 decades. This means more jobs, more pay raises, and more incentives to work harder. 5% unemployment will no longer be considered full employment. People of all classes especially those in the lowest income or those will little educational training will benefit the most.
13 trillion...Its just a number right? Wrong? $13 trillion is currently being held in offshore accounts to avoid the overbearing US tax system. It is just sitting not working to the advantage of you and me. When the overbearing tax system ends, these funds will return to the saftey of America. These funds can be spent and invested. Simply stated this means economic growth and in turn job growth and security.
The FairTax eliminates the IRS. Possibly the most hated agency in America and an unnecessary government bureaucracy will be eliminated in favor of a far more manageable and cost effective system of tax enforcement. Instead of over 200 million people and entities to enforce, enforcement becomes easier and cheaper because taxes would only have to be collected from the final point of sale purchases and a handful account for over 90% of all economic transactions in the US a year. A study done on the IRS found that less than 30% of the time when an inquiry was made for tax information or help that a correct answer was given the first time. This only adds to the aggravation of tax payers who will then have to go through a tax audit and get assessed fines for a mistake made by the IRS.
The FairTax eliminates over 70,000 pages of regulations in favor of a simple transparent system of just over 100 pages. This means no longer will politicians be able to favor one group over another since income and corporate taxes are gone. The class warfare rhetoric will be a thing of the past since every income group pays the same rate. Transparency and simplicity means less political rhetoric, tax evasion, and influence of lobbyists.
Current EffortsThe FairTax is a nonpartisan tax policy that of all alternative forms of taxation has the most political support by our leaders 73 in the House of Representatives and 5 in the Senate. To view view current Congressional leaders who support this movement
click here. Checkout the
Presidential support here. You can view Congressional
co-sponsors here. If your representative does not support the FairTax send them an
email or give them a call. Let them know why they should support the ultimate bailout plan for Americans.
To become a citizen co-sponsor of House Bill 25 with Sponsor Georgia Representative John Linder (R)
click here.
Conclusion
We need capital and we need it now. This is the real problem in the credit crisis. The average American is in debt. The answer is simple and will resolve many problems at once in adopting the FairTax. The FairTax takes away the punishment for providing capital by no longer taxing investments and savings. The FairTax will spur economic growth. The FairTax will create unprecedented job growth.
Imagine an America where you are no loner penalized for responsibility, have to give up your privacy at tax time each year, and have the possibility of being audited and being heavily penalized for a tax system that is so complex many at the IRS cannot give you a right answer.
The FairTax can change the American economy but it needs your support.
Instead of the government taking more of our hard earned money and telling you what we need to do with our own money, tell the government you want to keep your own money. Tell them you don't want to be punished for working hard and making sound economic decisions. Tell them you want a real change and an end to class warfare. Tell them you want a permanent solution that does not risk our tax dollars and instead want a change that allows us to keep and invest our money, not theirs, as we deem fit. The FairTax is the bailout the average American needs now!
To find out more on the FairTax or learn how to support the FairTax visit
FairTax.org or to become a citizen co-sponsor of House Bill 25 with Sponsor Georgia Representative John Linder (R)
click here.
