Is the Fair Tax Act a fair tax act?
Have you ever heard of the Fair Tax Act? It is a proposed bill which would (with parallel legislation) repeal the 16th Amendment to the Constitution of the United States of America, abolishing the IRS and federal income tax, replacing the system with a national sales tax. I am still reading up on the Fair Tax Act and the organization behind the movement, so it would be irresponsible for me to offer an opinion about either at this time. At first glance, however, it seems like an interesting idea that deserves some attention.
From the Fair Tax website:
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The FairTax:
- Enables workers to keep their entire paychecks
- Enables retirees to keep their entire pensions
- Refunds in advance the tax on purchases of basic necessities
- Allows American products to compete fairly
- Brings transparency and accountability to tax policy
- Ensures Social Security and Medicare funding
- Closes all loopholes and brings fairness to taxation
- Abolishes the IRS
I am interested in hearing what others have to say about the Fair Tax Act. I have a bit more research to do before I render my own opinion, but I have to admit that I love the idea of abolishing the IRS. Our tax system is flawed, unbalanced, and needs to be replaced. Not repaired, but replaced. Is the Fair Tax Act the way to go?
February 21st, 2010 - 17:25
My opinion: Actually, the Fair Tax would solve a great many economic issues we’re facing today. Broadens the tax base & fosters economic growth & business.
Teaching the Fed Govt Economics 101 is a different story. They’d have to learn what constitutes a priority & what does not so that they may learn how to balance a budget & even how to save money. Now there’s a novel idea.
The FairTax can’t happen quickly enough. If that had been Pres. Obama’s first piece of significant piece of legislation to be passed last year, the economic landscape of America would be vastly improved today.
February 21st, 2010 - 20:47
I have always thought the IRS should be abolished, and I have never agreed with income tax. Consumption is a good measure for how many resources someone uses, so a national sales tax would, in theory, place the burden on those who engage in use of the system. One thing is for sure, our government does NOT know how to balance its checkbook. And being that the funds which that checkbook represents belong to the People, that is a huge problem. Though government bloat and mismanagement of funds is a whole other article.
I plan to research the Fair Tax Act more thoroughly before I really commit to a stance on it (as I feel all people should), but I am beginning to open up to the possibilities it may present. Thanks for taking the time to comment, take care!