Posted on 09/16/2005 5:15:32 PM PDT by Man50D
Dear Editor, I've just read a new best-seller, which I highly recommend to you and your readers: "The Fair Tax Book, Saying Goodbye to the Income Tax and the IRS."
The co-authors are "reformed lawyer" and syndicated talk show host Neal Boortz, and Congressman John Linder, R-Ga.
Linder is also the principal author/sponsor of The Fair Tax Bill (H.R. 25), currently before Congress.
In the interest of brevity (the book is only 180 pages, by the way), I'll quote from the back of the dust jacket.
"What the Fair Tax will do for America: eliminate the income tax and the dreaded IRS; jump start the U.S. economy; bring businesses and jobs back to the United States; and recapture billions of untaxed dollars currently lost to criminal and offshore businesses.
"What the Fair Tax will do for you: allow you to keep 100 percent of your hard-earned paycheck; let you choose to save all the money you want .... and pay taxes only when you spend it; eliminate countless taxes you don't even know you're paying; lower interest rates; and make April 15th just another beautiful spring day."
The authors provide ample citations from the works of various economic think-tanks to back each of those assertions.
The Fair Tax would replace all current federal, income-based taxes with one universal, federal "consumption tax," on both goods and services, at the retail level only. There would be no exemptions whatsoever. The proposed, "revenue neutral," initial tax rate would be 23 percent. Predictions are that the resulting economic boom would make it possible to lower that rate in short order.
As described so far, the Fair Tax would be so regressive as not to stand a snowball's chance in hell of passage. Here's the solution.
At the first of every month, every head-of-household, irrespective of income/net worth, would receive a federal "pre-bate" check equal to the taxes due on his or her appropriate "poverty level spending" for the coming month. To quote the authors, "'Poverty level spending' is, by definition, that spending necessary for a household of a given size to pay for its necessities. It is adjusted every year by the Department of Health and Human Services."
For example, if the Fair Tax were currently in effect, every family of four would receive a monthly pre-bate of $491.82 to cover the 23 percent tax on its first $2,138.22 spent -- its "poverty level spending." All spending above that level (that month) would have a net federal tax cost of 23 cents on the dollar -- be it for sneakers or a yacht.
The federal sales tax would be collected by the states' sales tax offices. Moreover, don't forget that everyone's "take-home-pay" would be their full, gross earnings under the Fair Tax.
It is a most interesting, concise and thought-provoking read that can be knocked out in two or three sittings. Suggested full retail is $24.95. There is at least one copy available at the Camden County Public Library.
I hope that you and your readers will both enjoy the book and come to support the bill.
Ping.
The bill makes very good sense. The problem facing the bill is the bureaucracy that sees the Tax Code as a political tool and a political weapon. This system basically nullifies these "tools" for politicians. It also provides for the redistribution of wealth, a horribly socialistic premise from which many of us suffer today.
It would be a beautiful day to see the IRS reduced to one building outside of Washington somewhere. The revenue enhancement the government would realize, the heavy reduction in corruption, tax evasion, would save the taxpayers untold amounts.
It always gets down to the old fact: Is it good for the people who will approve or disapprove it??
If you would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright and replace them with with a national retail sales tax administered by the states.
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
It also provides for the redistribution of wealth...
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In above, refers to the Tax Code, not the bill --- :-)
"Highway Bill" came to mind as I was reading you post
Hopefully a fair tax means a single tax on income of all types, no exclusions.
Hopefully a fair tax means a single tax on income of all types, no exclusions.
It is a single retail sales tax collected on the sale of all new goods and services for consumption. No exceptions no exclusions and dosn't care where the income comes from that you are spending.
Horrible idea. Horribly recession-prone for starters, and will be much more difficult to enforce (collect) than the current system.
And the source of your profound insight would be?
Dead wrong on both counts.
Read Federalist 21 by Alexander Hamilton. Consumption taxes are self-leveling, like a fluid in nature.
And the retail tax is a breeze to collect compared to the income tax. 46 states already have the mechanism in place, and the vast majority of sales taxes are collected by retail operations at their cash registers. All that is needed is a simple recalibration of those machines. Piece of cake.
Educate yourself before you speak.
More idiot-level propaganda for the FairTax.
Income taxes of any breed are fundamentally flawed from their inception.
They are a key plank in the Communist Manifesto.
They are anathema to freedom...
You are absolutely correct. I salute you sir!
More juvenile commentary from balrog666.
In fact, the IRS is eliminated by the bill, not reduced.
The "political tool and political weapon" commentary will go by the wayside as the politicos begin to get the message (as they are starting to do) that their jobs which they so prize are dependent on bringing the FairTax into law.
Just keep letting them know that you expect them to support and co-sponsor the FairTax bill - it's starting to creep onto their collective radar screens.
which is longer than the whole Fair Tax bill!
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