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Section A: General News


Editorial: Opportunities abound with taxes based on consumption




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March 27, 2013 | 1,153 views | Post a comment

Fair Tax Series
By Glen Terrell and Paul Livingston

Here is a short list of big problems that tax reform could help solve:

•Stimulate jobs and economic growth

•Increase disposable income

•Regain lost economic and financial freedoms

•Reduce taxing power of politicians, lobbyists, and special-interest groups

•Reduce poverty

•Make federal taxes easy to understand and pay

•Improve funding for Social Security and Medicare

•Unify our country.

Please think about this list; which is at the top of your wish list?

But wait, why should you have to choose? There is one solution for all these problems. Start by moving the tax base from income, savings, and investments to a tax based on consumption.

One tax can work, a progressive sales/consumer tax system on all new goods and services. The solution is the FairTax Bill HR25/S122.

The FairTax was developed by the Americans for Fair Taxation after years of research and study with $22 million in private funds. This research is not associated with any political party, was done outside the Washington, D.C., beltway, and was not influenced by lobbyists.

The FairTax stimulates the economy by eliminating 22 cents per dollar in hidden/embedded taxes that we, as consumers, now pay in higher prices. By eliminating embedded taxes, prices go down and we become more competitive in the world markets.

The tax code change will bring capital to our economy, and America becomes a tax-free haven for business. The FairTax creates, without government spending and more debt, a jobs and economic stimulus program.

Disposable income goes up as the FairTax eliminates the salary deductions for income taxes and the regressive payroll taxes of Social Security and Medicare. You would get your whole paycheck before state tax deductions.

There is a monthly tax rebate, called a prebate, to pay the FairTax up to the subsistence level spending. For most families the gain in disposable income will more than pay for the FairTax tax.

The IRS is gone, along with deductions from your paycheck. No annual income tax filing.

Think of the FairTax as a progressive tax on the standard of living that you can afford. The more you spend, the more FairTax you pay, and at a higher tax rate.

Politicians and lobbyists now use the tax code to pick winners and losers, punish and reward, and, ultimately, divide and conquer. There are 17,500 tax lobbyists versus 537 elected officials in Washington, a ratio of 32 to 1. The FairTax will dismantle a taxing system that has grown to more than 73,000 pages.

Last year we spent $450 billion to comply with the federal tax code. The FairTax is a pay-as-you-spend system, 22 cents per dollar in the sale price of all new goods and services. There is no tax on used goods.

The FairTax does not change the Social Security and Medicare programs. It does move the tax base for these programs to the larger and more stable tax of consumption.

The FairTax is good for taxpayers and business. The FairTax is a progressive tax with no deductions, exceptions, or exclusions. The FairTax has much to offer, thus should be embraced by all Americans. The FairTax can be a unifier and bring our country together again.

Please take these actions. Learn more at www.fairtax.org. Sign up to support real/true tax reform. Call your U.S. representative and senators and ask them to co-sponsor the FairTax bill, HR 25 / S122.

Editor’s Note: To read the 133-page, double-spaced bill, go here: http://1.usa.gov/XDXRoU and click on GPO site. To join the FairTax movement, go to www.fairtax.org and sign up.
 

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