What is the Fair Tax? (Introduction)
The Fair Tax, or House Resolution 25/Senate Resolution 1025, in simplest words is a repealing of all income, payroll, corporate, capital gains, savings, and other taxes like the Alternative Minimum Tax in favor of a progressive national sales tax. In addition the Fair Tax will result in the removal of the 16th Amendment, which made it constitutional to levy an income tax (originally declared unconstitutional by the USSC in the 1890's). The Fair Tax is NOT about the repealing of a federal tax which would cripple our government.
Here are the main focus points from which my series on the Fair Tax will progress from. The Fair Tax:
- Will allow all workers of every economic group to receive their full paycheck with not taxes or "contributions" deducted
- Will be calculated onto the final sale of only NEW goods and services
- Will give every household (legal citizens only) in America a pre-bate check, no matter the level of income, for the taxes that would be payed up to the poverty level, in accordance with the Dept of Health and Human Services. Family size will be taken into consideration.
- Will be revenue neutral meaning that the current level of taxation income by the federal government will remain the same
- Will not change the services that Medicare or Social Security provide
- Will eliminate the IRS as it exists today as only retailers would be audited instead of individuals saving enforcement cost and increasing enforceability by decreasing the possible pool of people that can be audited
- Will collect taxes on every purchase made whether made by a legal citizen, undocumented immigrant, or foreign traveler
- Will allow the collection of taxes on ALL economic forces even those coming from illegal and the "underground economy"
- Will decrease compliance costs that corporations face that place our goods at a disadvantage to other products around the world
- Will encourage foreign and US companies alike to increase business enterprises in the United States instead of outsourcing the jobs overseas
- Will not tax education or other investments such as savings, stocks, or bonds
- Will encourage economic and job growth in our country
- Does not punish high achievers or hard work
- Allows any legal citizen of the country to be untaxed by only spending up to the poverty line.
In the coming days I will address each part of this focus in more detail and cover concerns about the Fair Tax. Likewise I will take time to address comments left for me here over concerns about the Fair Tax.
If you wish to know more about the Fair Tax now please check out FairTax.org or view Neal Boort'z free web seminar.
If you already support the Fair Tax I encourage you to sign the Fair Tax petition at changedc.org and write letters to your representatives.
