Okay, I am a fan of FairTax. The only way this legislation will ever pass if WE THE PEOPLE force our representatives to do it!
In short, FairTax removes all withholding from your paycheck. It eliminate the IRS and Social Security payments from your check. "Take Home Pay" does not exist any longer. You take home all your pay.
Business no longer have FICA matching and their taxes disappear as well! Instead of taxing based on wages, FairTax is a tax on spending. 23% is buried in the price of goods/services purchased. IT IS NOT 23% OVER THE PRICE.
Here are my top 3 favorite things about FairTax.
1. Anyone visiting the US that buys goods will contribute to our Social Security system. 75 million people annually.
2. Money made illegally could now be taxed.
3. Households "legally" in America will receive rebates monthly for essentials like groceries and medicines based on poverty level. There is an actual penalty for being in America illegally.
4. Of the top 500 companies in the world, 400 said they would build their next plant in America and the remaining 100 said they would relocate the entire operation to America.
5. "Offshore" money would be better suited here in America which would help the economy.
The trick is convincing politicians to pass legistation that will remove their power and the power of many lobyists, etc! Think about.
I like Neal Bortz book "Fair Tax; Answering the Critics". Check it out.
1 comment:
Basically, those who like the present income tax system believe in gov't controlling the economy (complete with income tax code, and tax-favor bartering for special interests at taxpayer expense). However, we've seen how that has worked - the Congress has spent us into effective bankruptcy.
Why, we even have the gov't sending money back out to the taxpayers from whom they confiscated it through income tax withholding!
Under FairTax, the gov't only receives money AS THE ECONOMY IS STIMULATED! (novel idea, huh?) Thus, when YOU benefit (by purchased goods and services for personal and family needs), the GOV'T BENEFITS (in a healthy way).
Pretty simple, yeah? Now, how does all of this wash out?
For a complete rundown of researched FairTax benefits, check my Comment at Slate Online. For an understanding of the URGENCY with which we should enact HR 25, please listen to the Kotlikoff interview.
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