A Solution to The American Tax Debate: The Fair Tax
How would you like to keep your entire paycheck, surrendering nothing to the federal government? How would you like a tax system that does not penalize you for making more money by increasing your income tax percentage? How would you like a federal tax that was fair to everyone, regardless of how rich or poor you are? That is exactly what the Fair Tax does. And as always, Wikipedia does a good job summarizing it too if you want to learn more.
The fair tax is a bill proposed by non-partisan legislatures to eliminate the current federal income tax system and replace it with a sales tax on all goods and services. The number proposed would be 23%. So yes, you will be paying 23% more for everything you buy; however, the federal government would take NOTHING out of your paychecks, ever. What the fair tax would do is tax you based on your consumption, or what you buy, rather than the money you make. I believe this is the fairest tax system for the country. If you have a lot of money and buy a lot of things, then you will pay more taxes than someone who is poor and buys less things. Thus, nobody is paying an unproportional amount of taxes compared to others in the country.
What the fair tax would do…
1. Eliminate the IRS completely thus reducing the size of our national government.
2. Encourage foreign businesses to expand their operations to the U.S. because, under the fair tax system, corporations would not have to pay the corporate taxes we currently have.
3. Force those who avoid paying taxes, like illegal immigrants, to pay taxes. There is no way to avoid paying federal taxes if the taxes are included in the price of everything they buy at the store.
4. Reimburse citizens living in poverty every month with a check so that they can afford the increased tax on living essentials like food.
For these reasons, I believe that the fair tax is the best answer to America’s tax debate. Estimates conclude that the federal government will get the same amount of money from the fair tax as it does from the current system. It will help the economy grow by freeing businesses from the current corporate income taxes. It will drastically even the playing field for American tax payers because everyone will be paying the same percentage of taxes on what they buy, rather than the gradual income tax percentages on increasing salaries we currently have. It will be fair to all Americans, thus the name.
This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax — administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.