FairTax Featured Article on Wikipedia Today
Well the title says it all. Today the FairTax article is the featured article on Wikipedia today. If you are not aware of what the FairTax is I encourage you to take a look at it.
Briefly, the FairTax is a proposal that would eliminate all corporate taxes which stifle economic and job growth, payroll taxes (MediCare, Security, and etc.), death taxes, gift taxes, and more that occupies over 95,000 pages of rules and regulations. The current tax system stifles hard work, saving, investing, places an average of 22% embeded tax rate in the average consumer product (remember that corporations do not pay taxes we do, every tax that is put on a corporation gets passed on to the consumer in this embeded tax rate), and keeps monies out of the US market due to penalizing forms of taxation.
Unlike the income tax, the FairTax is a true tax on wealth. The FairTax would insititute a 23% tax rate on all final sales of new goods and services. This sounds like alot but remember that you would now be receiving your full paycheck every pay period which on average would increase the size of your paycheck by 25%. The FairTax encourages fiscal responsibility. Since there is no penalty for making sound financial investments you can save until your heart is content with no tax burden.
Some of you may point out that it is a regressive tax. Well the FairTax has taken care of this by instituting a monthly prebate for taxes that would be incurred on spending up to the poverty line (family size and state of residence is taken into account) and adjusted for inflation yearly (for actual numbers on the prebate click here). The prebate would be sent to every citizen of the US. The prebate means that those who do not spend above the poverty level will not be taxed. Those who spend at twice the poverty level will pay a rate of 11.5% and so on. The more you spend the more you pay. Once again the FairTax encourages fiscal responsibility by decreasing tax rate on more responsible spending thanks to the prebate.
Best of All
The FairTax would eliminate the IRS, tax audits, investigations into your private matters by the US government (something the founders originally envisioned in the Constitution until the income tax amendment was added - 16th Amendment), eliminate the costly process (time and monetary) of tax preparation each year, and get rid of April 15th for good. You would never have to stand in line for hours at the post office again and all the confusing tax forms would be relegated to distant memories of governmental abuse and oppresion.
For more on the FairTax visit my series on the FairTax from March, April, and May of 2008.
For more information and how you can help the FairTax passed aside from visiting Wikipedia you can visit FairTax.org. Then become a citizen co-sponser at JohnLinder.com.
Make your Declaration and let your representatives know that you want them to support the FairTax.
