Originally posted by utherpendragon
THE FAIR TAX (HR 25 in the US House and S 296 in the US Senate) is a federal retail sales tax that replaces the entire federal income and Social Security tax systems, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax allows Americans to keep 100 percent of pressure on Congress each week. http://www.hermancain.com/economicfreedom-npi-fairtax.asp
Top Ten FairTax Advantages
NO TAX ON THE "POOR"
NO AUTOMATIC WITHHOLDING
NO TAX RETURNS (THINK OF THE TREES WE’LL SAVE!)
NO TAX LOBBYISTS (4 FOR EVERY SENATOR & CONGRESSMAN)
NO COMPLEXITY COSTS (APPROXIMATELY $250 BILLION EACH YEAR)
NO WASTED TIME FILING TAX RETURNS (APPROXIMATELY 5.4 BILLION HOURS EACH YEAR)
NO NOSEY “BIG BROTHER” INTO OUR FINANCIAL AFFAIRS
NO EMBEDDED TAXES IN U.S. GOODS AND SERVICES
ABCs of The FairTax
ALL federal income taxes and federal payroll taxes will be replaced with The FairTax, also called a consumption tax or a national retail sales tax.
Brackets of taxation are eliminated. There is just one rate for everyone.
Capital gains taxes are eliminated. More investment means more jobs.
Death Taxes are eliminated, and keeping track of deductions is over.
Everyone is taxed at the same rate of 23% on new goods and services.
Foreign visitors will pay sales taxes (about $60 billion/year).
Groceries and basic necessities are not taxed using the “pre-bate”.
Hidden taxes hurt the poor more than the non-poor.
IRS is eliminated and replaced with a Sales Tax Administration.
Job creation in the USA would take off, because embedded taxes and taxes on corporate profits would be eliminated.
Keeping the collection of taxes simple saves taxpayers billions of dollars annually, which is estimated to be about $250 billion or more.
Liberals hate the idea because it gives people control of their money instead of government. Lobbyists will hate it also.
More money for workers and businesses by eliminating compliance costs.
No more income tax returns!
Oppressive demands by the IRS would be eliminated!
Pre-bate of expected sales taxes on basic necessities is based on family size and paid monthly to each family.
Quick passage by Congress is not likely without a massive demand by the voters.
Repeal of the 16th Amendment would be in a companion bill.
Spend more on stuff, you pay more in taxes.
Two-thirds vote by the Senate would be required to change the 23% rate.
“Underground economy” would pay taxes (billions!) like everybody else.
Visibility of the federal taxes we pay would be crystal clear.
Workers would control their lives and their “pursuit of happiness”.
XL (extra large) economic growth would be unstoppable!
You decide how much you pay in taxes when you spend, not the government.
Zero rate of taxation on education expenses and Zell Miller would love it!