Usually when our politicians reform our tax system we get very little reform and a lot more taxes.
Usually this takes when they have had big spending increases as we have just had and like we had under Regan when he had to rebuild our military.
The tax increase that we supposedly didn't get under Regan's administration didn't hurt, but the reform was a killer.
That's when they pulled that slight of hand where they didn't raise the percentage you where paying they just eliminated the deductions.
It hurt the American working man worse than anything I can remember. The States liked it so well the following year most of them reformed the the State income form also.
My federal return had been averaging $2500-$2600 a year for four years previous ,at the end of the three years it was $600-700. It hit so hard they had to phrase it in over a three year period.
They use the cover of reform and fair share on that one to.
They where going to make it more simple and easier to fill out the forms.
They certainly did that.
They took all our deductions except home mortgage and religious charities and threw them out he window.
That's what I'm afraid is happening here.
NO, that's not what's going to happen with the FairTax. Do some reading with the links given in #855 and be sure to read at least part of the bill itself - and make your own judgement.
I believe the work the Panel is doing is because most people know that the present tax system is BROKEN and can't be fixed. The President has charged the Panel with investigating and coming up with recommendations that meet certain requirements.
The FairTax bill (hr25/s25) as written clearly meets these requirements and so far other plans do not.
With the FairTax, there will be no quesstion about what each taxpayer's tax burden might be nor will there be any suspicion (as at present with all the class warfare stuff) that someone else is escaping taxes - he'll be paying at the same rate you do --- everyone will; even the poorest people. They are protected due to the prebate but still pay at the same rate when they consume.