Subject: Fair Tax Comment: Please consider the FairTax: It would eliminate the income tax. There would be no tax forms for citizens to fill out. It would eliminate the need for the IRS. Tax revenues could be handled by the Treasury. It would be administered just like current state sales taxes. All taxes would be collected by retail businesses as they sell goods and services. It would be very compatible with ever increasing electronic transactions like credit cards etc. It would tax all citizens at the same rate so that only those who spent more would pay more taxes. It would encourage savings and investment. It completely eliminates the ability of political groups to interfere with economic issues of taxation for special political interests. It would save the country an estimated $600 billion a year spent in complicated tax compliance. It would collect taxes from everyone living in this country, including aliens and illegal aliens- adding billions of dollars to the nation's treasury. It would tax the underground cash economy in the U.S. because people who currently evade taxes would be taxed equally when they bought goods and services. Analysts say it could dramatically increase the tax revenue collected while reducing the impact on individual citizens. The cost of compliance is estimated at only $1-5 billion per year for businesses, as much as 500 times less than the current system. However there is no cost of compliance for consumers. |