Are you familiar with the FairTax Act?

Question

Review it, push a pencil on your own situation, and support it if you can see the advantages. If I got the employers share of Social Security and Medicare added to my paycheck I would get about a 7% immediate raise in take home pay with at least an $800 rebate.above the 23% sales tax.

Answer 1

What is the FairTax plan?

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 1025) 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:

Abolishes the IRS
Closes all loopholes and brings fairness to taxation
Ensures Social Security and Medicare funding
Brings transparency and accountability to tax policy
Allows American products to compete fairly
Reimburses the tax on purchases of basic necessities
Enables retirees to keep their entire pension
Enables workers to keep their entire paycheck
We offer a library of information throughout this Web site about the features and benefits of the FairTax plan. Please explore!

Answer 2

Under the current income tax system, EVERY INDIVIDUAL is paying double taxes. When people respond that they will pay more under the Fair Tax, they are only looking at their individual tax return and the total taxes paid on that form. They are not considering the second and hidden taxes they are paying every time they make a purchase.

BUSINESSES DO NOT PAY ANY TAXES! They are merely a collection agent of the federal taxes. Tha amount of taxes they collect for the federal government (corporate taxes, capital gains etc) are merely another "cost of doing business". These costs are paid by the consumer! That is you and me. The economists have looked into a wide variety of business and determined that this "cost" (including compliance costs) range from 19% (manufacturing) up to 26% (services industries incl accountants, lawyers, doctors etc). The overall average is between 22% - 23%. When someone indicates their taxes will be more than they are paying now, I ask if they have considered these taxes? They do not see this amount anywhere, so they did not include it!

The Fair Tax will be clearly be shown on the receipts or invoices so each person will know exactly what they are paying.

The comment stated in the question regarding receiving the employers share of the SS & Mdeicare is misleading. If your current take home (net) check is being considered as the base, and after the Fair Tax is passed your receive your gross pay, it would be an effective 7.65% increase in your spendable money. The employer currently includes this "cost" as wages, not taxes. The employer would consider his part of SS & Medicare (cost of doing business) as an income tax cost that has been removed and needs to reflect it in the lower price of the product. If he were to pass this tax savings on to the employee as a wage increase, the employee would have an effective 15.25% increase in spendable money.

Answer 3

I listen to Neal Boortz every day and am favor of the fair tax. I can't wait for his latest book - Answering the Critics (or something like that)

Answer 4

I listen to Neal Boortz too, but this is one place I strongly disagree with him. The only really good thing I see in it is that it does hit the "underground economy". But as far as I can see, even with the rebate it would hit the middle class hard, and would ease up on most of the upper middle class and the wealthy.

Answer 5

I've had a long hard look at it. I would pay nearly $14k more with it -- and I'm hardly wealthy. I have a good friend who is a single parent who would lose nearly half of her available cash with the "Fair Tax".

My question is: Who the hell is it "fair" for? The ultra-rich? Must be why folks like that like it so much!