Fair Tax Benefits All Americans

RedState.Org ^ | 1/18/06 | Merrill Bender

[Eaglewatcher]

Fair Tax Legislative Package -HR 25/S25

1. Supported by Alan Greenspan and 75 other Economists and Economic Professors. They all support a consumption tax as better for America than an income tax.

2. Removes the most regressive tax on the poor and middle class- the payroll tax. Provides a broader based tax for Social Security and Medicare. The Fair Tax also replaces the personal and business income tax, AMT(Alternative Minimum Tax), death tax, capital gains tax and investment taxes.

3. Removes business income and payroll taxes resulting in a drop in prices by 10 to 25%. Saves an estimated $250 to $400 Billion annually in unproductive tax compliance costs.

4. Eliminates the cumbersome IRS Tax code and replaces it with a National Sales tax of 30%(income tax equivalent of 23%). With price drop consumers pay about the same. Under the arcahic Income and payroll tax a middle class family had to earn a gross pay of $148 to bring $100 Home. Under the Fair Tax you bring $148 dollars home and with a minimum 10% price drop that same $100 of Goods costs you $90. Add the Sales Tax your new total is $117. You net $31 extra.

5. Fights outsourcing; increases Manufacturing and business growth back in America. Boosts Economic Growth an estimated 6 to 10% in the first year. Increased job growth.

6. Reduces the trade deficit because exports will not pay the sales tax and be 10 to 25% cheaper for sale overseas. Leveling playing field with low wage countries. (Unions should support)

7. US shores will be the most competitive corporate tax -free zone not the Bahamas. Corporate headquarters and many other businesses can return to US soil and be more competitive. Investment capital will flow and American Based business and jobs will grow.

8. Average working families take home 100% of their paychecks, no Federal income tax or payroll deductions. Average family of 4 making $50,000/yr takes home $5,000 to $7500 more.

9. Families have more Spendable income for Health Insurance, Childcare, College tuition, and Private retirement Savings accounts. It's their choice for their family. "Ownership"

10. Fair Tax package is revenue neutral and Progressive with a Prebate of Sales tax up to the Poverty line of spending. Family of 4 gets $492/m. Couple receives $367/m. No receipts, no complicated filing for refunds. A refillable monthly debit card to cover Sales tax on all purchases up to the poverty line of Spending - Family of 4 HHS sets in 2005 at $25,660- Prebate is $492/m

The Fair Tax is revenue neutral, progressive and fair. Net tax rate for the Poor at the poverty line is 0%, for the middle class at twice the poverty line is 11.5%; for 4 times poverty line 17.2% and the more you spend your net rate is between 20 and 23%.

The Fair Tax meets requirements set by President Bush when he said, "simplify" the tax code in a way that is fair, does not raise or lower the overall tax burden and better promotes "long-run economic growth and job creation." It also meets his standard for promoting Home ownership and Charities.

Get the facts at www.fairtaxvolunteer.org/smart/faq.html

Family Friendly Tax Reform

www.fairtax.org

Time to sweep out the old code and bring in a fairer and simpler system forAmerican Families, American Workers and the American Economy.

Tax Reform with far less pain and much more gain in One Legislative package HR25/S25.

[Blood of Tyrants]

I believe that the Constitution prevents an export tax. What is to prevent them from buying stuff overseas? Nothing. When they want to bring it to the US, it gets taxed.

[gleeaikin]

Yes, but what about things that are not brought back, like luxury villas, fancy cars to put in the garage, antiques and art to furnish a vacation home, and land.