Fairtax in 5 mins or less: I would encourage everyone to learn more about it. A search on fairtax will get you all you all kinds of info (Fairtax.org is a good source). Here is my view on it. One development of the plan was privately funded to the tune of $22,000,000. The initiators hired some really smart people. The constraints they were given where to : 1) preserve federal funding at the levels present at that time (spending is a separate issue from the tax method). 2) Come up with a better plan which would be simple, and promote a better economy.
The sponsors fully expected the solution to be a flat tax. They were VERY surprised when the smart guys came back with a federal sales tax (i.e., the FairTax).
The main thrust of the research performed was to determine the true amount of federal taxes we pay. This would include income taxes, social security, medicare (all the stuff you see deducted on your pay stubs). It also includes hidden taxes that you do not see. Such as the portion of social security paid by your employer or the additional cost of goods and services due to corporate income taxes, payroll taxes of employees, etc. Across several hundred products they found that you pay between 19% and 33% taxes on the products. Most being around 30%.
They then found that a 23% federal sales tax would more than fund all federal spending at the time of the analysis. Considering that social security alone costs you 7.5% and your employer another 7.5% the 23% starts to look really good and it is! Just think no federal return. Soon the states would have to follow suit. Then there is the spending of 12-20 million illegal aliens that would then be taxed as well. Corporate income taxes would no longer exist which frees 14 trillion dollars now oversees to come to back to the US. In a recent survey of global businesses (CEOs) headquartered outside the US, when asked how they would react to the total elimination of U.S. corporate income taxes, 60% said their next large investment would be in upgraded or new facilities within the U.S.. 40% stated they would immediately move their corporate headquarters to the U.S. Talk about an economic stimulus package!
The Fairtax is also named appropriately. For it is the most fair. Low income households at or near the poverty level still get a tax break in the form of a monthly reimbursement check in the amount of what is judged to be food for a typical U.S. household. Everyone gets one of these checks monthy. So, in effect the necessities of life are not taxed. What is taxed ? Everything when sold new. Yes the car. Yes the luggage. Yes your medicine. Yes your school books. But No not your savings and no not your capital gains, and no not your income.
Why has Washington not gotten on board and why all the negative press ? Because a fair tax would take away lots of power Washington presently has over you! You see they could no longer write exceptions, or provide credits or just ignore the income tax as many of Mr. Obamah’s cabinet have done. I basically removes a really big club from the hands of the politicians.
Hope this one page is enough to get some of you interested.
Fairtax in 5 mins or less: I would encourage everyone to learn more about it. A search on fairtax will get you all you all kinds of info (Fairtax.org is a good source). Here is my view on it. One development of the plan was privately funded to the tune of $22,000,000. The initiators hired some really smart people. The constraints they were given where to :
ReplyDelete1) preserve federal funding at the levels present at that time (spending is a separate issue from the tax method).
2) Come up with a better plan which would be simple, and promote a better economy.
The sponsors fully expected the solution to be a flat tax. They were VERY surprised when the smart guys came back with a federal sales tax (i.e., the FairTax).
The main thrust of the research performed was to determine the true amount of federal taxes we pay. This would include income taxes, social security, medicare (all the stuff you see deducted on your pay stubs). It also includes hidden taxes that you do not see. Such as the portion of social security paid by your employer or the additional cost of goods and services due to corporate income taxes, payroll taxes of employees, etc. Across several hundred products they found that you pay between 19% and 33% taxes on the products. Most being around 30%.
They then found that a 23% federal sales tax would more than fund all federal spending at the time of the analysis. Considering that social security alone costs you 7.5% and your employer another 7.5% the 23% starts to look really good and it is! Just think no federal return. Soon the states would have to follow suit. Then there is the spending of 12-20 million illegal aliens that would then be taxed as well. Corporate income taxes would no longer exist which frees 14 trillion dollars now oversees to come to back to the US. In a recent survey of global businesses (CEOs) headquartered outside the US, when asked how they would react to the total elimination of U.S. corporate income taxes, 60% said their next large investment would be in upgraded or new facilities within the U.S.. 40% stated they would immediately move their corporate headquarters to the U.S. Talk about an economic stimulus package!
The Fairtax is also named appropriately. For it is the most fair. Low income households at or near the poverty level still get a tax break in the form of a monthly reimbursement check in the amount of what is judged to be food for a typical U.S. household. Everyone gets one of these checks monthy. So, in effect the necessities of life are not taxed. What is taxed ? Everything when sold new. Yes the car. Yes the luggage. Yes your medicine. Yes your school books. But No not your savings and no not your capital gains, and no not your income.
Why has Washington not gotten on board and why all the negative press ? Because a fair tax would take away lots of power Washington presently has over you! You see they could no longer write exceptions, or provide credits or just ignore the income tax as many of Mr. Obamah’s cabinet have done. I basically removes a really big club from the hands of the politicians.
Hope this one page is enough to get some of you interested.
Best regards to all
Pilgrim