Posted on 04/18/2006 10:26:47 AM PDT by Eaglewatcher
In Congress today is a tax reform bill called The FairTax. I want to tell you a little about it and then tell you why it is important for the immigration debate. The FairTax would institute a national retail sales tax and eliminate the personal income tax, the payroll tax, and the taxes hidden in business but paid by the consumer. It replaces all of these taxes with a 23% tax on personal consumption, meaning that out of every dollar spent by consumers, 23 cents will go to the tax man and 77 cents will go to the merchant. This will eliminate the IRS from the lives of Americans as well as the billions upon billions wasted on income tax compliance by both businesses and individuals. It will ensure that the American worker keeps his or her full paycheck, free of the large deductions made by government today. And finally, it will speak to the illegal immigration issue that plagues us today in two key ways.
We are a nation of laws and responsibilities. Two of these responsibilities are paying taxes and obeying the law. There may be many sides to the immigration debate, but there can be no debate about two things: we are a nation of laws and responsibilities, and illegal immigrants are not following these laws and fulfilling their responsibilities. They are not paying their taxes, and they are overwhelming our taxpayer-funded public services.
First, in a FairTax world, taxes will be paid when any good or service is purchased by any consumer. This will ensure that we all pay our fair share. If you buy a Mercedes, youll pay large Mercedes-style taxes (23% of a Mercedes will be a bundle). If you buy a small Chevy, youll pay small Chevy style taxes (23% of a Chevy will be much less). But you will in fact pay. Whether you are an American citizen, an illegal immigrant, or a legal visitor to our shores, you will pay when you go to the check-out counter. And when I stand at the check-out counter with you, I will know that you are paying your fair share, and you will know that I am paying mine.
America stands for the proposition that an individual can change his circumstances through hard work and savings. While todays tax code encourages consumption over savings, and punishes the up-and-comer by taking more of every additional dollar the individual earns, the FairTax encourages savings and hard-work. In a FairTax world, we continue to have compassion for those who are down and out. Through the use of a prebate (a rebate that comes even before the money is spent), the FairTax ensures that all individuals live tax-free up to the poverty level, guaranteeing that those who are down can use all of their resources to come back up again.
The second way that the FairTax speaks to immigration is the prebate. In order to receive the prebate, you must be a legal resident in the US. Through the use of Social Security numbers, we will ensure that only those individuals who are in this country legally receive a prebate. This means that illegal immigrants will pay more in taxes with every purchase they make. Given the added drain that an illegal immigrant imposes on the country, Americans wont mind them paying a little extra. Again, the FairTax ensures that everyonelegal or illegalpays their fair share with every purchase they make.
Taxes and illegal immigration, there is a better way to do the former, and it will certainly impact the latter. Join me to support legal immigration, to support everyone paying their fair share, and to support the American worker getting a fair shake. Join me to support the FairTax.
Congressman John Linder represents Georgia's Seventh District, which includes parts of Bartow, Cherokee, Forsyth, Gwinnett and Paulding Counties. A former dentist and businessman, John came to the U.S. House of Representatives in 1992 and has served in a number of leadership roles during this time.
Just make sure the income tax is no more..
Amen to that. As an employer, I'm tired of sneaking dollars out of my employee's paychecks at the behest of the Federal Government. I hate being a party to this "invisible thievery".
The overriding question is, how to approach this result? I suggest that all in Congress who consider the 100,000+ pages of the IRS Code and regulations an abomination, should join in putting a "sunset provision" in the IRS Code, meaning that it will expire in a set time, perhaps three years.
That initial act will light a fire under Congress to agree on what will replace the IRS. Congress will have that three years to thrash out the details of the Fair Tax, and pass it.
The advantage of this approach is that more in Congress know that the IRS MUST be abolished, then are currently in agreement as to what should replace it. Therefore, the "sunset provision" is more likely as the first step, and should be taken NOW.
P.S. I have an early primary for Congress in the 11th District of North Carolina, 2 May, less than a month away. visit my website in the tagline, and help however you can.
Congressman Billybob
"If you actually think you will spend more on taxes with the fair tax, you are completely ignorant. "
A very astute - and correct - observation. Many don't stop to think but merely jerk their knees ... (and flap their gums).
You are absolutely right. Nothing fair about the Fair Tax. The more ways we allow the Federal Government to dip in our pockets the worse it gets. They get enough with all the special taxes such as booze, tobacco, gasoline, etc. If you think that these taxes will no longer exist, think again, fair tax or not.
The income tax amendment would have to be repealed first or we would be a victim of the IRS again. In Britain they did not eliminate their income tax before going to the Value Added Tax. Now they have both.
I pay WAY, WAY, WAY, more than that RIGHT NOW!!!!!!!!!!!!!
The FairTax bill (HR25) eliminates that (and several other taxes including payroll taxes), eliminates the IRS, requires the income tax records be destroyed, and calls for repeal of the 16th amendment.
It is a tax bill, not a spending bill or an amendment repeal bill but those are in the pipeline, too.
And, under the presen system (or any income-based system) you do so at your own expense.
With the FairTax if you collect and forward taxes (and not all businesses do) you are paid to do so - no unfunded mandaate.
I disagree. The reform just has to be better thought out. Perhaps a 8-10% sales tax on goods but excluding food and housing. And combine that with a reduced income tax structure that eliminates taxes on those earning under $50K, and a flat 25% rate above that with no deductions. That would be a greatly simplified tax system that would make our exports more competitive and greatly simplify our current mess. None of the prebate nonsense. None of the 30% rates which would be a huge double tax on people with savings and a huge hit to the new housing industry.
I'm only up to just over 50%... For instance, if I buy my $1,000,000 3 bedroom "mansion" here in sunny Kalifornia will I actually pay $1.3MM? If I buy a "used" home then it's tax exempt, but a new home is taxed at "23%" (really 30%?)
This is my interpretation... I see many flaws in the current bill, like the prebate (which could easily be fiddled with to buy votes just like the current system) and the tax on "services" (needs to be cut out, too many problems raised by it). I'd prefer a head tax ($10,000 for each citizen), that is the only "fair tax", other than a direct tax on services... but the "Fair Tax Act" is the best that is out there, and with a little work it could be not only better than what we have, but as close to a fair tax as we could hope for.
Making taxes visible will generate a tidal wave of calls to reduce the total tax burden. This is one of the fringe benefits of the Fair Tax.
Did you know that some of the Framers wrote that they "expected a new American Revolution" if the tax rate ever climbed to 10%? Today, the sheeple are passively paying a total tax burden -- local, state and national -- of about 43%. But right now, much of those taxes are hidden in all the goods and services we buy. They are not visible.
John / Billybob
John / Billybob
What really ticks me off, though, is that tax reform was one of the primary planks in the President's campaign platform in 2004. But the donks have pretty effectively neutered GWB on this point with their ridiculous stall tactics on every other piece of meaningful legislation.
I just don't see major reform without a fight, and right now there are more important battles (like national survival) occupying the President's and the majority party's time.
"I'm completely baffled at the lack of comprehension and understanding of 'Fair Tax' on the part of some freepers."
...
after reading your post...: I'm completely baffled at the lack of comprehension and understanding of 'Fair Tax' on the part of some freepers.
I'd prefer a head tax ($10,000 for each citizen),
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So you would prefer that the lower income family of four trying to make it on a gross income of $40,000. should pay their entire gross income in taxes? Am I following you?
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