What is the Fair Tax and Why We Should Support It.
You work and work to make a living, support your family, etc. Either as an employee, independent contractor, or business owner. You work quite hard, 100% for what you earn. You do 100% of the work, right?
But, you have a portion of your pay withheld, or you make quarterly tax payments, or both, and you have to file every year, and probably have to pay to have it done as well! You have to pay to pay your taxes!
On top of this, when a person dies, their heirs are responsible for death, inheritance, and estate taxes, despite the fact that the money in the bank and the money used to buy the estate and it’s effects has already been taxed!
This is wrong, especially in a country where the virtue of hard work is supposedly celebrated. There is a way to correct this. It’s called the Fair Tax.
The Fair Tax was originally proposed by former Congressman John Linder of Georgia, and has been publicized greatly by Atlanta radio commentator Neal Boortz.
They’ve also co-authored two books about the Fair Tax, “The Fair Tax Book”, and “Fair Tax: The Truth”. These two books are ones that every American should read.
First, here’s what the Fair Tax would do and how it would work:
- It repeals the 16th amendment and eliminates the current income tax and death taxes.
- it replaces the embedded taxes in everything we buy. Currently these make up 22% of the total price that we pay for all goods we buy. The Fair Tax would make up roughly this same percentage. NOTE!: Contrary to what critics say, the Fair Tax is NOT a tax on top of the price of the item as a sales tax would be! This means that the prices we pay would not change much if at all with the implementation of the Fair Tax!
- You would not need to file taxes anymore and April 15th would be just another spring day! This includes those who are self-employed. And those who use paid help such as a CPA or Attorney to file taxes, would save at least $100-$500 a year, and for many people, more than that! Currently the cost of compliance alone is staggering, approximately $400 billion yearly! And remember, for businesses, this cost is huge, and is passed on to you, the consumer.
- No More Audits! Yea!
- Everyone who works, regardless of income, will get a ‘prebate’, This will protect the poor as they can use this for necessities. To those of you who believe this to be another handout, this can actually replace, yes, replace, the current welfare state. And it will actually cost less, as there is less room for fraud and the poverty line is the limit as to how much a person would get! Also, since everyone is getting a prebate check, they’ll be no need to determine what it can be spent on and no one can get upset if someone uses it to buy some toy. No one will even know that the money is coming out of a person’s prebate check.
- Businesses will flock to the USA to do business and even to relocate their headquarters here since there would no longer be an income tax or the massive cost of compliance that goes with it! And domestic businesses will want to stay here instead of relocating overseas! And, outsourcing jobs overseas will be reduced, perhaps greatly, and with foreign companies wanting to relocate here, jobs may be coming, too!
- Related to above, our economy may boom like it never has before! With the money saved from not having to pay income tax or compliance costs, businesses will have more money to spend on hiring, expansion, and development of new products. This means cheaper goods, more jobs, more goods being available, and people with more money to spend and feeling economically secure enough to spend it and boost the economy further!
- Bigger savings than from deductions and credits under the current system! No one would need deductions and credits under the Fair Tax, and they will save more money! Everyone will save by not having to pay their CPA or attorney at tax time, everyone will get an automatic raise since nothing would have to be withheld from their paychecks, at the same time their employers, for the same reason, would be making more money, too! The self-employed and independent contractors would not have to file quarterly taxes, everyone would get the prebate check up to the poverty level to cover basic necessities! And no one would be hit with audits, which almost always results in more taxes, fees, and penalties on top of penalties, and the joy of dealing with the IRS, whose employees and agents often can’t even give you a correct answer to your tax questions! This would all end under the Fair Tax!
I have known people who have worked two jobs to supplement their income and one person I know for sure wouldn’t need to do that if the Fair Tax were implemented!
One last thing. While more republicans than Democrats support the Fair Tax currently, this is neither a Democratic nor a Republican cause, it is an American cause for freedom! And it is a plan that will help Americans at all economic levels!
Now, what I’ve written is just a very concise description. There is more information out there and the best place to look on the internet is http://www.fairtax.org. There is much better information here that is better explained than what I’ve written here. It is very informative and I urge everyone to visit this site.
If you like what you’ve read, please comment and let others know of this blog!
Thank you for reading! 🙂
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