- A 23% national retail sales tax.
- A prebate to ensure that NO American pays federal taxes on spending up to the poverty level.
- A dollar for dollar federal revenue neutrality.
- A repeal of the 16th amendment.
The Fair Tax would abolish all federal, corporate, and personal income taxes, gift, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with ONE simple, pithy, and effective federal retail sales tax.
It would be administered primarily by existing state sales tax authorities and is a fair, efficient, transparent, and rational solution to the frustrating and onerous current tax system.
So what does this do for the people? In its entirety, the Fair Tax enables workers to keep their entire paycheck, enables retirees to keep their entire pensions, allows American products to compete fairly, brings accountability to tax policy, ensures Medicare and Social Security funding, and most of all ladies and gentlemen it abolishes the IRS.
Sounds good doesn't it? Well there's more.
Tax Awareness
With the Fair Tax, whenever a consumer buys something, the tax is separately listed on the receipt, so he or she knows the exact amount of money that the government is taking. With the Fair Tax, the people keep the money he or she earns and has the liberty to essentially choose how to pay their own taxes. He who spends more pays more taxes. As a result, the Fair Tax not only solves the overgrown current tax policy, but at the same time, it controls a what seems to be, chronic overspending trend by the American people.
Fair
Another great bullet point of the Fair Tax is the fact that there are no exemptions. So all of the lobbyists, corporations, illegal immigrants, drug dealers, and prostitutes have to pay the same taxes that everyone else has to pay. More simply, no more cheating the system. With the Fair Tax, the government(Democrats) can stop over-taxing billionares and under-taxing the middle class, for the Fair Tax allows every brand of people to keep the money they earn, and pay their taxes according to their lifestyle, according to their means.
Rewards
The Fair Tax provides a rebate to every American family with a rebate of the sales tax on spending up to the federal poverty line. The rebate is paid monthly in advance. It allows a family of four to spend $27,380 tax free each year. The rebate for a married couple with two children is $525 a month($6,297 annually). Therefore no family pays a federal sales tax for essential goods and services.
Social Security and Medicare
As for Social Security and Medicare, the benefits remain the same. The funds receive the same amount of money they do under the current law. No changes will occur to retirement funds, hence there is no give and take here. All of the essential policies are still in action, however their funds are taken from a different source.
Ultimately, with the Fair Tax, the American people are given more freedom. The money is still being arrogated by the government, but the people choose how much will be deducted. Hardworking American citizens are able to keep their full paycheck, and spend it accordingly to the 132 page Fair Tax, rather than the 50,000 page current tax code.
For the complete proposal and further resources go to: fairtax.org
Join the fight for fair taxes.