FairTax.org

Economy
1

Repeal every single tax in the federal register. End all federal taxes. Estate, FICA, Income, Corporate, Excise, Capital Gains, any tax you can think of. This would also entailing repeal of the 16th amendment.

Replace it with one single tax on sales of new goods. 23%. There would be a pre-bate so people that made under a certain income level would pay 0 tax, and if they are welfare recipients, they can still work and not worry about losing welfare benefits while at the same time, not paying taxes until they had enough earned income.

This is economically efficient and plenty of free market economists love the idea. It generates an entire new “green economy” and “recycle economy” since the tax only applies to new goods, not used.

There is no way to avoid it, even if you pay cash. The tax has to be charged. Illegal aliens can’t avoid it either. BUT, people would pay far less in taxes, and indirect taxes than they do today.

Corporations could invest in new employees or plants since they won’t have to worry about taxes. Salaries would go up, investment up, and employment up.

The stock market would go much higher with this tax as businesses got the government off their backs.

The IRS becomes a smaller agency that’s not on your back. No one in the US needs to file a federal income tax return.

Who is against it? The Brookings Institution which means it is probably a really good idea. Retailers are against it, but they are already collecting sales taxes and this is just another line item in software. Accountants are against it because instead of doing taxes, they have to drum up new business. Tax lawyers and Estate lawyers are against it because there is no reason to have them in the US anymore.

People who have saved a pile of money might be against it since they have paid income taxes already on that money. The US could issue short term relief for them to fill that donut hole.

People with a certain income level might be more penalized by the tax, and again, in the short run as we are adjusting the Federal Government could fix that donut hole.

Foreign corporations would flock to the US to headquarter and build with this tax system. It’s NOT a VAT+Income. It’s a simple tax that you pay whenever you purchase a new good. YOU choose when you want to pay the tax.

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2

The FAIRtax will be the solution to the problems with the income tax, social security and tax evasion. Simple and fair. More progressive than the present system and brings jobs back to America

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3

I propose we consolidate all FairTax Votes here: https://forum.policiesforpeople.com/t/fairtax/

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4

While I actually do like the simplicity here- the main question is would the abolishing of FICA/payroll taxes offset the disposable income used to buy big ticket items (cars, appliances, etc.) that come with a higher sales tax?

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Based on many many economic studies, yes it would! It captures a lot of the things the current tax code does not, while at the same time getting rid of tax avoidance and special interest lobbied tax breaks.

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Seems like a good idea though all over the suggestion page there are different kinds of tax proposals, which all could be solved with the Fair Tax.

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This idea would ensure that everyone pays tax, not just some of the citizens. A broader base does seem more fair. It would certainly simplify taxes and eliminate the need for an IRS. As for progressive, the upper 5 percent currently pays two thirds of all federal income tax. How would this proposal be more progressive than that?

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In general, the wealthy consume a lot more than anyone else. They spend a lot more. Hence, they would pay more tax. Even if they didn’t spend, all wealth is consumed someday so all wealth eventually gets taxed

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9

Good question.

Think of it this way; under the current system, if you buy a big ticket item, new OR used, you pay the same amount of income tax. Under the FAIRTax, you can buy NEW and pay the tax, or buy USED and NOT pay the tax. You could also fix your existing car or appliance rather than buy a new one and only pay the tax on the NEW parts to fix it.
You have more options under the FAIRTax. You’ll be able to save at the fastest rate possible. You’ll also be able to pay off debt at the fastest rate possible.

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The positive effects of passing H.R.25, the FAIRTax, are too numerous to describe or list here.

They more than equal the number of all the primary, secondary, tertiary, quaternary, quinary, negative impacts of federal income tax and payroll based taxes since passage of the Sixteenth Amendment, one hundred and eleven years ago.

In a nutshell, the FAIRTax replaces the federal Income Tax, payroll based and other taxes, with one, national sales tax.

It’s rendered progressive by a reimbursement of that tax up to the poverty level, meaning that if you have a family budget of a truly poor family, your effective tax rate, will be zero, or less.

With the elimination of the corporate tax, businesses worldwide will flock to the United States, so there will be fewer truly poor citizens of the U.S.

You’ll never have to submit a federal tax return. The I.R.S. will not audit you because they cease to exist.

For more details, see https://fairtax.org/

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11

Imagine not getting your 401K taxed when withdrawing after your 59.5!!!

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