The Fair Tax

Unlike yesterday’s subject, the “Fairness” Doctrine, which is not al all “fair” and especially not to conservatives, today’s topic, the FairTax, is fair to everyone.

This weekend, there are probably more than a few other Americans, like me, who are completing 1040s, state and local income tax forms. The annual ritual of either doing our own taxes or visiting our CPA or tax preparer is analogous to going to the dentist for a tooth extraction or for a Catholic, going to the priest for an annual confession. Tax preparation can be literally a grueling and taxing exercise.

The The RightMarch.com website describes America’s current Federal income tax system as “broken, complicated, easy to evade, and unfairly burdens the lower and middle classes. And, attempts to fix it have only made it worse.”

DOING SOMETHING ABOUT THE IRS AND ILLEGALS

With the looming deadline facing many it is a good time to pause and reflect on the bureaucratic nightmare that the current income tax system causes most legal Americans. I say legal because there are a growing number of illegal aliens who are working in the vast underground economy. This is because President Bush, his administration, our government bureaucracy and our spineless representatives, all refuse to enforce our immigration laws.

Illegals are taking wages under the table from lawbreaking employers thereby robbing the U.S. Treasury and Americans of “revenue” to provide necessary services. In fact, it is these very illegals who are increasingly demanding the “free” services– schools, healthcare and various forms of welfare - for which they often contribute next to nada. But the whole immigration matter is another story.
However, something has to be done with both our income tax system and as well as our immigration problem. One solution that would address both is the Fair Tax Plan. One group, the Americans For Fair Taxation (FairTax.org) is leading the effort to bring about this needed change, namely abolishing the Internal Revenue Service (IRS).

WHAT IS THE FairTax?

According to the Americans for Fair Taxation (FairTax.org) website “the FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with an integrated approach including

· a progressive national retail sales tax,
· a rebate to insure no American pays federal taxes up to the poverty level,
· dollar-for-dollar revenue neutrality, and
· the repeal of the 16th Amendment.

This nonpartisan legislation (HR 25, S 25) abolishes all federal

· personal (income tax),
· gift,
· estate,
· capital gains,
· alternative minimum,
· Social Security,
· Medicare,
· self-employment and
· corporate taxes

and replaces them all with one simple, visible, federal retail sales tax – collected by existing state sales tax authorities. The FairTax taxes us on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. So it is cost neutral – the final cost for goods an services changes little under the FairTax. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.”

Not only will the FairTax provide the advantages listed above it will also allow the government to collect from much of the underground economy, such as the Mafia, illegal aliens and other criminals.

HOW WOULD THE FairTax WORK?

According to the RightMarch.com website, “The FairTax would impose a 23% (tax-inclusive) sales tax on the purchase of new goods and services in the U.S. It would let workers keep their entire paycheck and retirees keep their entire pension; abolish the IRS and ends all audits of individual taxpayers; replace the federal income tax, freeing individuals from ever filing a tax return again; replace all payroll taxes including Social Security and Medicare taxes (current Social Security and Medicare benefits would not change); replace corporate and self-employment taxes; eliminate all hidden federal taxes; provide a universal rebate equal to the sales taxes paid on essential goods and services to ensure that no American pays taxes on necessities; replace all estate, gift, and capital gains taxes; dramatically lower tax rates for low- and middle-income Americans; close all tax loopholes; bring accountability to tax policy; and let American-made products compete fairly."

TAKE ACTION

(1) It's time to scrap the current tax code, and give the IRS the boot. Click here and enter your zip code enabling you to send a FREE message to your Congressman and both of your Senators, demanding that they SUPPORT the newly reintroduced "FairTax".

(2) Rallies for FairTax are being held all over the Nation. For example, if you are able join one of the three rallies to be held at the post offices in the following cities in Ohio: Canton, Cleveland and Dayton. See Tax Day map here for a list of cities that have organized events.