Subject: PASS HR25 and S25 FAIRTAX Comment: The FairTax is fair to all Americans and simple to understand. Under the FairTax, all wage earners will keep 100% of their paychecks, prices will drop dramatically, and Social Security and Medicare funding will be more secure. The FairTax frees up financial opportunity by restoring choice in spending, encouraging savings and investment, and dramatically reducing tax evasion. With the elimination of virtually all compliance costs, $225 billion will be restored to the economy. The FairTax offers an unprecedented opportunity for lower and middle-income wage earners to get ahead, to save to buy a house, to educate themselves and their children, and to save for a dignified retirement. And under the FairTax, all Americans, regardless of their income level, will be better off with the FairTax. Everyone will be subject to the same consumption tax rate with no exceptions and no exclusions, and those least able to share in the cost of government will carry no federal tax burden at all. The FairTax increases individual purchasing power, making it easier to get ahead financially by eliminating: the individual income tax, including capital gains taxes the payroll income tax the inheritance tax and the gift tax the self-employment tax the corporate income tax The solution we propose involves two actions: Passage of legislation that institutes a single-rate, FairTax on all final sales of new goods and services. This tax would become the chief source of revenue for the United States government, replacing all federal income and payroll taxes, yet generating the same revenue. The legislation provides for a tax rebate equal to the consumption tax paid on essential goods and services. The rebate ensures that no American will pay tax on the purchase of necessities. A constitutional amendment that would repeal the 16th Amendment and make a federal income tax unconstitutional. |