Subject: Benefits of the FairTax Comment: Potential benefits of the FairTax ? The FairTax will replace the income tax with the more stable revenue source of consumption. ? A broader tax base is created, effectively lowering tax rates for most Americans and ensuring that all citizens finally pay their fair share. ? Through a monthly rebate, all taxpayers are exempt from federal taxation on spending up to the poverty level. ? Removes the hidden cost of compliance from the price of goods and services. ? People will finally be able to understand the federal tax code without having to seek professional help. ? The FairTax would free up over $250 billion dollars a year in costs related to income and corporate tax compliance. ? With 90% less tax filers, compliance is much easier to enforce and gives literally billions of hours of time back to taxpayers. ? With a greatly reduced role or even elimination of the IRS, the government can be more effective and streamlined in their duty of collecting revenue. ? An estimated 10.5% growth in the economy in the first year alone is expected under the FairTax. ? “Double taxation” on savings and investments is eliminated. ? With lower operating costs, the FairTax makes businesses more competitive overseas and at home against imports. ? With no income or corporate taxes, U.S. companies abroad can bring their factories back home and give jobs back to American citizens. ? The largest tax haven in the world will be created under the FairTax. Foreign companies will come to the U.S. to build factories and give even more jobs to U.S. workers. ? With the elimination of the payroll tax, people making only up to the poverty level will finally enjoy a true 0% tax rate. Also, the self-employed will be free from the burden of having to pay the entire 15% payroll tax on themselves. ? With the elimination of the death tax, families will no longer have to worry about selling the family farm or business to pay off the government. ? An increase in homeownership is expected under the FairTax. People will be able to save faster having more money in their pockets. Interest rates are also expected to decrease by about 25%. ? Charitable giving will not be affected, and is most likely to rise. It is a myth that people donate to charities just for tax breaks. ? People who make their money “off the books” will finally be paying their fair share of taxes to the Federal government. ? Civil liberties will be greatly enhanced. The burden of proof will be put back on the government. ? Removes the direct tax explicitly forbidden in the U.S. Constitution. ? The closing of all loopholes brings control of our legislature back to ordinary citizens. Lobbyists, tax lawyers, and special interest will loose their grip on our elected officials. ? The transparency of the FairTax will at last show the American people the true cost of running the government. |