Just in case those who aren't familiar with the common sense of the FairTax, this is why it will make a good income tax replacement system: It's...
The FairTax is:
SIMPLE, easy to understand
EFFICIENT, inexpensive to comply with and doesn't cause less than
optimal business decisions for tax minimization purposes
FAIR, loophole free and everyone pays their share
LOW TAX RATE, achieved by broad base with no exclusions
PREDICTABLE, doesn't change, so financial planning is possible
UNINTRUSIVE, doesn't intrude into our personal affairs or limit our
liberty
VISIBLE, not hidden from the public in tax-inflated prices or
otherwise
PRODUCTIVE, rewards, rather than penalizes, work and productivity
Its benefits are as follows:
FOR INDIVIDUALS:
No more tax on income - make as much as you wish.
You receive your full paycheck - no more deductions.
You pay the tax when you buy "at retail" - not "used."
No more double taxation (e.g. like on current Capital Gains).
Reduction of "pre-FairTaxed" retail prices by 20%-30%.
Adding back 29.9% FairTax maintains current price levels.
FairTax would constitute 23% portion of new prices.
Every household receives a monthly check, or "pre-bate."
Pre-bate equals payback for taxes on spending to poverty level.
FairTax's pre-bate ensures progressivity, poverty protection.
Finally, citizens are knowledgeable of what their tax IS.
Elimination of "parasitic" Income Tax industry.
NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals.
Those possessing illicit forms of income will ALSO pay the FairTax.
Households have more disposable income to purchase goods.
Savings is bolstered with reduction of interest rates.
FOR BUSINESSES:
Corporate income and payroll taxes revoked under FairTax.
Business compensated for collecting tax at "cash register."
No more tax-related lawyers, lobbyists on company payrolls.
No more embedded (hidden) income/payroll taxes in prices.
Reduced costs. Competition - not tax policy - drives prices.
Off-shore "tax haven" headquarters can now return to U.S.
No more "favors" from politicians at expense of taxpayers.
Resources go to R&D and study of competition - not taxes.
Marketplace distortions eliminated for fair competition.
US exports increase their share of foreign markets.
FOR THE COUNTRY:
7% - 13% economic growth projected in the first year of the FairTax.
Jobs return to the U.S.
Foreign corporations "set up shop" in the U.S.
Tax system trends are corrected to "enlarge the pie."
Larger economic "pie," means thinner tax rate "slices."
Initial 23% portion of price is pressured downward as "pie"
increases.
No more "closed door" tax deals by politicians and business.
FairTax sets new global standard. Other countries will follow.
It will take efforts greater than those that got us to the moon, to get to the FairTax. But, after 9 years - it's finally come into the mainstream with 5 current presidential candidates backing it (Gravel-D, Huckabee-R, Tancredo-R, Cox-R, Hunter-R), heck even Ron Paul has alluded to it as a replacement for theIRS.
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The above advice is right on.
Just in case those who aren't familiar with the common sense of the FairTax, this is why it will make a good income tax replacement system: It's...
The FairTax is:
SIMPLE, easy to understand
EFFICIENT, inexpensive to comply with and doesn't cause less than
optimal business decisions for tax minimization purposes
FAIR, loophole free and everyone pays their share
LOW TAX RATE, achieved by broad base with no exclusions
PREDICTABLE, doesn't change, so financial planning is possible
UNINTRUSIVE, doesn't intrude into our personal affairs or limit our liberty
VISIBLE, not hidden from the public in tax-inflated prices or otherwise
PRODUCTIVE, rewards, rather than penalizes, work and productivity
Its benefits are as follows:
FOR INDIVIDUALS:
No more tax on income - make as much as you wish.
You receive your full paycheck - no more deductions.
You pay the tax when you buy "at retail" - not "used."
No more double taxation (e.g. like on current Capital Gains).
Reduction of "pre-FairTaxed" retail prices by 20%-30%.
Adding back 29.9% FairTax maintains current price levels.
FairTax would constitute 23% portion of new prices.
Every household receives a monthly check, or "pre-bate." Pre-bate equals payback for taxes on spending to poverty level.
FairTax's pre-bate ensures progressivity, poverty protection.
Finally, citizens are knowledgeable of what their tax IS.
Elimination of "parasitic" Income Tax industry.
NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals.
Those possessing illicit forms of income will ALSO pay the FairTax.
Households have more disposable income to purchase goods.
Savings is bolstered with reduction of interest rates.
FOR BUSINESSES:
Corporate income and payroll taxes revoked under FairTax.
Business compensated for collecting tax at "cash register."
No more tax-related lawyers, lobbyists on company payrolls.
No more embedded (hidden) income/payroll taxes in prices.
Reduced costs. Competition - not tax policy - drives prices.
Off-shore "tax haven" headquarters can now return to U.S.
No more "favors" from politicians at expense of taxpayers.
Resources go to R&D and study of competition - not taxes.
Marketplace distortions eliminated for fair competition.
US exports increase their share of foreign markets.
FOR THE COUNTRY:
7% - 13% economic growth projected in the first year of the FairTax.
Jobs return to the U.S.
Foreign corporations "set up shop" in the U.S.
Tax system trends are corrected to "enlarge the pie."
Larger economic "pie," means thinner tax rate "slices."
Initial 23% portion of price is pressured downward as "pie" increases.
No more "closed door" tax deals by politicians and business.
FairTax sets new global standard. Other countries will follow.
It will take efforts greater than those that got us to the moon, to get to the FairTax. But, after 9 years - it's finally come into the mainstream with 5 current presidential candidates backing it (Gravel-D, Huckabee-R, Tancredo-R, Cox-R, Hunter-R), heck even Ron Paul has alluded to it as a replacement for theIRS.