Posted on 04/04/2006 2:17:28 PM PDT by Eaglewatcher
The FairTax (HR 25 in the US House and S 25 in the US Senate) is a federal retail sales tax that replaces the entire federal income and Social Security tax systems, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail cost of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
More FairTax benefits:
No tax on used goods. No tax on business inputs. With the FairTax, if you choose to buy any new good or service, the sales tax is charged just as state sales taxes are computed today. If you choose to buy used goods - used car, used home, used appliances - you do not pay the FairTax. If, as a business owner or farmer, you buy something for strictly business purposes (not for personal consumption), you pay no FairTax. So, in deciding what to buy, you get to choose whether or not you pay the FairTax.
No federal sales tax up to the poverty level means progressivity like today's tax system. Furthermore, to ensure that no American pays tax on necessities, the FairTax plan provides a prepaid, monthly rebate for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax?
All Americans take home their whole paychecks. Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks. Retail prices no longer hide corporate taxes or their compliance costs, which drive up costs for those who can least afford to pay. Did you know that hidden income taxes and the cost of complying with them currently make up 20 to 30 percent of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices - from 20 to 30 percent higher than they would otherwise be - for everything you buy.
Tax criminals - don't make criminals out of honest taxpayers. Today, the IRS admits to 25 percent non-compliance with the code. However, this does not take into account the criminal/drug/porn economy, which conservative estimates put at one trillion dollars of untaxed activity. The FairTax taxes those engaged in the underground economy capturing their income at the cash register. The substantial decrease in points of compliance - from every wage earner, investor, and retiree, down to only retailers - also allows enforcement to concentrate on following the money to criminal activity, rather than making potential criminals out of every taxpayer struggling to decipher the code.
The income tax exports our jobs, rather than our products. The FairTax brings jobs home. Most importantly, U.S. exports are not burdened by the FairTax, as they are with the current income tax. So the FairTax allows U.S. exports to sell overseas for prices 22 percent lower, on average, than they do now, with similar profit margins. Lower prices sharply increase demand for U.S. exports, thereby increasing job creation in U.S. manufacturing sectors. At home, foreign imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparison to other countries' value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.
YOU are in charge! The FairTax moves us from a system that taxes what we earn to a system that taxes what we spend. Under the FairTax, you control your tax liability, not the government. The FairTax puts "we the people" in charge of our money, and puts us all on the path to economic freedom!
To enact the FairTax and unleash the full economic potential of the U.S., we must apply Vocal and Persistent pressure on Congress each week.
Email, call or fax your members of Congress today. Send them this simple message: "Please support replacing the federal income tax code and become a co-sponsor of HR 25 or S 25, the FairTax."
Actually, this guy sonds like one ot those in the Tax Protester movement.
Sort of like Irwin Schiff, et al.
... and now he tries to change his strawman into a red herring.
Will wonders never cease???
Answered ... check #335.
Beer goes well not only with pizza, but also with falafel. Make a note of it.
"Obvious ways around that"??? And you think those obvious ways you presented would somehow pass the smell test of honesty rather than being seen for what they are - an evasion attempt.
The state sales tax guys aren't that stupid, friend. If you live your life that way under the FairTax you'll end up in the same cell block as Nightie - and it would serve you right. You're obviously not a mathematician who can use common sense.
The trick with falafel is to make it nice and thick. Too thin, and it's humus--it just won't fry up right.
Some forms of taxation ARE non-socialist. In fact, taxation has nothing at all to do with socialism. It's on the outgo side that socialism comes into play.
There have been multitudes of non-socialist governments over the 6,000 or so years involved ... and they have ALL taxed.
Sorry ... never touch the stuff!
You have no idea what you're missing. Falafel, properly made, is worthy of the table on mount Olympus.
I'm afraid he not THAT type of mathematician. More like what Looey does.
Since I've never been there and won't be going there, I'll just have to miss that "pleasure".
I thought you were ignoring me. Goes to show how much your comments are worth.
No, it won't ... just a state sales tax aauditor who's been down this path or a very similar one with many present evaders.
You really must be of the TP persuasion. Most of your posts indicate that. Which of the "pay no taxes" losers has brainwashed you?
Like all state sales taxes presently the CA sales tax only taxes certain things, differs in different locales, and does not tax many things.
That's quite different from the FairTax which also requires a receipt explicitly showing the price of the item and the tax as well.
Wrong, see #335.
Just like Forrest Gump ... "Selfish is as selfish does". Who gives a damn about anyone else, right?
That's because your calculator is flawed, Rightie.
Izzy old bud ... what "exemptions" do you think you find in the FairTax bill (especially since you've not read it)??? And how is it those "exemptions" might be "tweaked"???
And please tell us which guy in the Tax Protest movement is it that you follow?
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