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."
They will be taxed again when spent even under the present system.
Really!!! We're all ears - lay all those "very serious flaws" right out there in detail for all to see and inspect instead of just making such vague general claims..
No it isn't. Tax base is WHAT is taxed not WHO is taxed.
Okay, the FairTax base is new retail items for consumption. The income tax base is incomes. Now it's correct.
Now it's your turn. The FairTax (H.R.25) explicitly taxes only retail goods for consumption with the expressed intent of taxing those items once and only once. As well, the FairTax eliminates the income tax code and its muscle, the IRS. The FairTax base (retail goods) is much, much larger than the number of incomes tax base (incomes). But you already know all of that. Thus you were being intentionally deceptive (when you wrote: "The Fairtax tax base already taxes everything new, what's it going to expand to, taxing everything used, taxing income?"390
BTW, thanks for assisting me in correcting my error in order to make sure I accurately and specifically identified your dishonesty. (shaking head in near disbelief) You're sooo easy!
Your comments about "freeloaders" merely illustrates you lack of knowledge of the FairTax.
And also reiterates your TP background.
... and you're the dolt thinking that he can wish away all taxation by wishing it away - or possibly by just not paying it as your mentors tell you.
The key is how one ends up with disposable personal income and with the FairTax you'll be better off.
BTW ... "could be" only 20 to 20 percent also.
Just had an enjoyable filet mignon, but I think they chose the wrong wine for the sauce. It was a pushy little wine, and I'm just sure they could have done better.
Further, the seared tuna was seared too long. A decent meal, on the whole, but not quite up to my expectations I'm sorry to say.
Falafel would have been cheaper.
No, your reasoning doesn't ring true. If there were that many serious flaws in the bill it would have approximately 0 cosponsors rather than 52 (you number's off).
As it becomes more and more apparent to the Congresscats that there is great frassroots support, there will be more and more cosponsors joining. None of them are so brave as to wish to be out on a limb not supporting something that there is heavy grassroots support for. This is now becoming known to some of them and will to more later as we progress.
In fact, it's an excellent bill, one that has been more thoroughly researched from an economic standpoint than any other tax bill - by far.
One of your more erudite posts, I'm sure.
I note that you refuse to disclose who your TP hero and teacher might be.
Right, Right!! Kill 'em all!!
You speak of the "real problem" ... that's a lot like O. J. looking for the "real killer" ... you'll both have the same sort of success.
What we really need is an organization for the top 2% of all cooks. Anyone who calls himself a "foodie" would be banned for life, of course. But just imagine the fare at the meetings!
It seems that Izzy is just one of the disruptor wannabes that hop onto the thread and throw some BSA around along with a bunch of insults and then eventually evaporate.
You'll notice that just like Izzy there's no substance in the comments at all - and that's because he knows nothing about the FairTax. That's also par for the course with these types of trolls.
It's great that you continue to expose your ignorance of the FairTax ... and in general also by trying more nonsense posts. Just goes to show everyone how serious you are about taxation - not at all!!
Bump-To-The-Top.(#386)
Once it was learned that people could vote themselves bounty from the treasury, it was only a matter of time before they found a gun (IRS) with which to protect their new claim.
Without a major change in the tax collection system the 'great experiment' is over.
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