Returning the federal gov't to a tax based on commerce and not in individual income is urgently important for two reasons:
The individual income tax has destroyed financial privacy, which used to be as an important a right as reproductive privacy. Having even a single dollar in your pocket gives the gov't the nexus to force you to testify against yourself if you came by that dollar legally, and if you properly reported and paid the tax on the "income" of that dollar. It even leads government to absurdly define "income" to include gifts and (government) lottery winnings, while excluding expenses like the cost of driving to work each day.
The individual income tax also justifies the ongoing and surveillence of every bank and credit card transaction, even to mandating the reporting of cash transactions.
Needless to say, those who live in the underground economy (illegal alien day workers, drug dealers, prostitutes, etc.) are not paying income tax today, and this may be more than 10% of the economy.
The second reason that the Fair Tax plan is important is the very reason that Chrysler was sold to a German firm rather than buying it.
When a US corporation bids on selling their product to a non-US buyer, their entire cost structure includes all the income taxes levied on all the supplier's components along with their own tax burden. When a European corporation bids on the same sale, they know that the Value Added Taxes they paid will be refunded when the product is exported.
Additionally, the Europeans have "socialized" health care costs. The cost of the health care of Chrysler workers is included in the price of their cars. The cost of the health care of Fiat's workers is paid for by government, so Fiat can sell a car for less as a result.
This means that US prices must be higher to naturally reflect the tax burden that European (and Asian) suppliers do not share. This may be upwards of a 10% difference in price advantage.
For these two reasons alone, the income tax code must be destroyed and the Republic returned to the tax system that the founders designed as being the most fair and most likely to uphold and not destroy liberty.
Well said.
It's surprising to me that so many here cannot see the big picture. I can almost understand those who want to protect a little niche that they have carved out for themselves so that they actually benefit from this horrid system, but why stick your kids and grandkids with it? The income tax is destroying our liberty and all they think about is their wallet.
Services provided at retail will be taxed will they not? Will I pay a tax on my haircut?
Income taxes simply are NOT included in product prices. Federal corporate income tax collections are a tiny portion of total taxes and many of our largest companies rarely pay them.
Chrysler was bought by a better and more productive company why it wanted the company is beyond me since their cars have always been crappy AFAIAC.