Monday, April 7, 2008

Taxes, Economy and America Part 1

I am typically not very political, but I have to tell this story about FairTax because I believe it has the ability to become one of the greatest pieces of legistlation in our countries history.
FairTax is a tax on new purchases and services. 23% tax will be buried in the price of items you purchase, not 23% after you pay. All other taxes are gone!

Here are a few things I like about FairTax.
1. There is no IRS, no April 15 deadline, no tax filing!

2. There is no withholding from your paycheck. What you make is what you take home!

3. Money earned illegially in the US will be taxed (ex. If a drug dealer buys a new car, they will pay tax, this is a new revenue stream since their money has never been taxed before)

4. 50 million visitors to the USA annually will pay FairTax. That's right, they will help support Social Security and Medicare.

5. FairTax gets ride of Corporate Taxes. Companies will desire to move back to the US since they can do business from here more competitively.

6. Employers save money because they are not having to match 7.5%/employee in FICA taxes.

7. As a consumer you can pay as little or as much tax as you want. If you purchase everything used, you will avoid much of the tax! You are more in control.

Part of the reason I write this out is because I believe FairTax has great potential and will help solve many of America's financial problems. At the same time, FairTax will remove the power of many government officials who use taxes as a way to get elected or help "special interest". FairTax will remove their power. Perhaps, this last item is why FairTax has a slim chance of passing congress. If you like the idea of FairTax, then do something.

To learn more about FairTax, click here.

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