Posted: Apr 29, 2005 By: Zachary M. Naggiar

Subject: National Retail Sales Tax

Comment: Fair Tax justification
By Z Naggiar

The goal of the “FairTax” is to replace the repressive income tax system, Social Security (tax) and the Medicare (tax). The FairTax includes a National Retail Sales Tax (NRST), mandates a repeal of the 16th Amendment, abolition of the IRS, and provides a provision to rebate every household up to the predetermined national poverty level for sales tax spent on the necessities of living. The NRST fully funds the federal government, social security, and Medicare with the needed capital.
Several academic tax research groups and well known economic minds used very elaborate economic models, calculated the percentage needed to make a NRST revenue neutral (raising the same capital as the current income tax), would be 23%. This tax model has been 10 years and $22 million in the making before it ever sponsored in Congress. The FairTax plan also pays for sales tax collection fees to retailers and state governments already collecting their own state sales taxes.
The beauty of the FairTax is that it is completely transparent. This is by the lack of embedded or hidden taxes with anything you purchase. There are never any surprises with the FairTax. You always know exactly how much tax and when you are going to pay it. According to leading national economists, there is on average, a 22% embedded tax in almost everything you purchase. There is embedded tax in everything, from your house right down to your argyle socks. Each step taxed in the entire manufacturing process. By the time you purchase that new suit it has been taxed a multitude of times. Under the FairTax, no tax will or can be applied to that product until final purchase at retail.
This year millions of law-abiding taxpayers will spend millions of hours attempting to figure their taxes, or spending several hundreds or even thousands of dollars to have “tax professionals” labor for them. Calling the IRS, who most likely will not have the correct or all the answers you require is not only dangerous but also useless. Most often IRS agents do not fully comprehend the magnitude of the entire US tax code. Nevertheless, no matter which way you go, there are bound to be a few mistakes. What if we were living with and paying a National Retail Sales Tax? No ridiculous tax codes, no filing, no evaders, no errors to make, and no jail term if we err. With the current taxing system, the government has made American citizens potential criminals. The IRS looks at this as job security. The FairTax mandates a repeal of the 16th Amendment so there can never be income tax legislation levied in the future. It also abolishes the IRS, saving taxpayers almost one trillion dollars per year.
The Federal Government scripts thousands of pages of new tax code every year that we must adhere too. I do not believe any three Congressmen have ever read the entire tax code, which is now almost 70 thousand pages long, let alone understand it. One thing is for certain, they will use that tax code to reward or punish special interest groups or certain demographics. The FairTax is approximately 133 pages, completely nonpartisan and utterly user friendly.
In my personal opinion, any taxation system that will abbreviate the power of the Federal government over the masses is a superb idea. Concluding the IRS will be a great boon for Americans and our economy. America is bleeding economically; please do your part to help exact this sweeping change by learning about, teaching, and informing other about the personal economic benefits of the FairTax. The bills HR25 and S25 are under review as I write this by the President’s tax reform panel. Please contact “Americans for fair taxation” by logging onto or call 1-800-FAIRTAX.
Let us make April 15th just another spring day.

Zachary M. Naggiar
Aircraft Mechanic and taxpayer
Orange Park, Florida