Comment: Submitted by Eva Mosiman of Topeka, Kansas. 1. I propose we change to the FairTax which would collect Federal Taxes via a National Sales tax/Consumption Tax and repeal the 16th amendment. 2. The best part of this tax is its' simplicity and fairness to all parties. The poor will receive a prebate at the beginning of each month to cover necessities up to the poverty level of spending. There is no tax on used items so this is a win, win situation for lower income families. Those with more resources will spend more and will no longer be able to shelter their wealth to avoid taxes. There will be no loopholes and no unpaid taxes as everyone will pay as they go. Taxes will be collected for all new goods and services upon purchase by illegal immigrants, drug dealers, underworld money operatives, individuals who receive tips, and foreign travelers. There are no special deductions or credits as the FairTax is very straight forward and simple. People often dismiss it without taking the time to study the full premise which has been thoroughly researched by leading economists. Most people have understandable fears which can usually be answered to their satisfaction if they will but ask an informed FairTax advocate. 3. The tax rate is recommended to be 23% which sounds high, however, when all the imbedded and hidden taxes are removed, most items will cost approximately what they presently cost. 4. As stated above, the poor will not be hurt by this tax and it will be fairly distributed over the full population according to their ability to purchase goods. The best part is the inability for individuals to hide, unreport, not file, or otherwise shirk their duty to pay their taxes. With the FairTax, we can also collect taxes from those traveling in our Country and those illegally in our Country who are not on the tax rolls. 5. The economists predict that it will have no affect on charitable giving. I have personally never connected my charitable giving to my tax burden. It is predicted that when Americans have more of their own money they will give more. Submitted by Eva Mosiman of Topeka, Kansas 6. Because there will be no deductions, there will be no need for all the extra paper work to keep tract of homeowner interest payments, donations, and all the other things we try to keep track of to limit our tax burden. Again, when all the hidden taxes are removed, homes will remain costing approximately what they presently cost and used homes will not be taxed. If everyone begins purchasing used homes, or other used goods, the prices will rise and new homes, new cars, etc. will again look attractive. 7. The collection aspect is wonderfully simple as most states presently collect sales taxes and so the National Sales tax can be collected right at the cash register at time of purchase. The money is submitted to the State each month and then the State will submit it to the Federal Government. The states can be paid for their part by the Federal Government and the enormous cost of collecting and preparing taxes we presently all pay will be eliminated giving Americans an added bonus. Progress always eliminates some businesses and creates new ones so there should be no concern for those tax preparers who will undoubtedly be able to find other jobs. 8. Business to Business taxes will not exist so the need to increase prices to cover such taxes will not exist. Economists believe our economy will grow, creating more jobs and international trade will be made more favorable. 9. I do not believe any plan could be simpler or fairer nor our Country more ready for this change. Because it will be more economical to administer and because most existing businesses presently collect sales taxes, it should be easy to spot fraud from their previous sales records as well as fewer entities to check for fraud. There will always be those who try to evade paying their share but businesses that participate in such activity should be easy to spot. There will undoubtedly be a period of six months to a year while prices adjust and the old merchandise, which is still laden with taxes, is moved out. Competition will help adjust the new prices to their lower level. New Internet sales will have to be taxed. This definitely is a comprehensive change that will scare the faint of heart, but it is such a wonderful and simple plan to free us all from the yearly investment of time and money needed for tax preparation. It should provide sufficient funds to support Social Security and all our Governments other money needs. I am not an eloquent writer but I do hope you grasp my strong belief in the FairTax Plan. I sincerely Thank You all for your work and time spent on this panel. Eva Mosiman 3334 SW Friar Topeka, Kansas 66614 |