Comment: I am sure that by now you have heard all of the PRO/CON on all positions. I WOULD LIKE TO ADD THAT I AM IN FAVOR OF THE FAIR TAX {Also known as the National Sales Tax}. I would also like to add that ANY tax change WILL NOT WORK unless the IRS is canceled in full. FEATURES OF THE FAIR TAX, HR 25 (SB 25) 1. Taxpayers keep their whole paycheck, 23-42% more income to spend, save or pay for education, all creating a robust economy. 2. When spending this extra money, the retail sales tax paid WILL NOT Increase the cost of purchases because this retail sales tax is a REPLACEMENT tax paid to replace the previously removed, embedded corporate taxes. 3. These corporate income taxes, matching Social Security, CPA and lawyers fees inflate our goods 20-30% and hinder our ability to compete overseas since we are exporting our embedded taxes. (Business-to-business taxes are eliminated). 4. The revenue raised by this 23% tax equals the amount presently collected under the income tax system. The six research economists and study groups found that more revenue would have been collected via a consumption tax than an income tax during years of unemployment or slow growth since consumption continued from savings. 5. The FairTax is simple because there is no filing, no recordkeeping, no IRS, nor a 55,000 page code. The 100+ pages of the FairTax bill are primarily transition instructions since there is no recordkeeping or forms, and, therefore, eliminates all loopholes. No one escapes from paying at the cash register, the porn industry, the conscientious objector, illegal immigrants, nor the underground economy. 6. The FairTax rate is 23% tax inclusive. Even the present lowest rate of 15% + 7.5% Social Security/Medicare is almost 23%. Further, as stated in item 2, purchase prices DO NOT increase. 7. In addition to the impoverished being able to make purchases without embedded taxes, they receive a prepaid monthly rebate of their Sales taxes spent on the first $10,000* paid for basic necessities (poverty level) as established by the Dept. of Health and Human Services. This literally untaxes the poor who presently are in the 20-30% tax bracket. 8. The FairTax is fair because those who choose to consume pay more. If, however, they create jobs, spend for research and development, or give to charity, these activities will no longer be taxed! 9. The elderly have no tax on their 401K's, IRA's, capital gains, or Social Security. Their purchases are 20-30% less because there are no embedded corporate taxes. Further, the prepaid monthly rebate assures no taxes will be paid on the first $10,000* spent for basic necessities of life. There will be no taxes paid on the sales neither of their biggest asset, their home, nor on their estate, or business or family farm, nor on any gifts. 10. The intrusive IRS is eliminated since the state comptroller who presently audits and collects the state sales taxes simply adds another 23% to his collections. This successful system has been in effect for 46 states for years. Eliminating the IRS is a $500 billion annual savings to taxpayers in compliance costs and $10 billion IRS budget savings. *Readjusted annually |