I want to take a moment to plug something called the Fair Tax, details on which can be found at http://www.fairtax.org. Simply put, this tax proposal would abolish all current taxes (yes, all) and replace them with a single, nation-wide, sales tax. This tax would be paid by anyone who purchases products or services (except for those below the poverty level), meaning it’s an across-the-board tax that everyone pays, both rich and middle-class.
Doing away with all taxes would allow the abolishment of the Internal Revenue Service and allow the states to introduce an amendment to repeal the 16th Amendment to the Constitution. Making it apply to anything anybody buys (with the exception of used items, like used cars) is fair, because nothing is exempted (not even food, which currently – at least in Texas – is not taxed). Business-to-business transactions are not taxed, allowing companies to invest more in their growth and stimulating the economy. Workers keep more of their paychecks, because payroll and Social Security/Medicare taxes are no longer deducted. No more tax cheats, because nobody will have to file a tax return.
And the proposed tax rate is 23%.
Whoa, now, you’re probably saying, 23% is a lot of money. The Fort Worth sales tax rate, after all, is only two percent, and the Texas sales tax rate is only 6.25%. And this is a nationwide tax? So going to a state like Alaska (which currently has no state sales tax) would cost more?
Well, yes. But businesspeople who take vacations and deduct them from their business taxes would no longer be able to do so. Businesses who spend money investing in their company’s growth would not pay taxes, nor would they pay payroll taxes on their workforce – which could translate into either greater investment or higher wages. And if a company finds itself more profitable because of increased productivity (i.e. happier employees) they may be more willing to pass those profits on to their employees in the form of bonuses and wage increases.
But even if they didn’t, workers would realize a de facto wage increase by the lack of income, SS, and Medicare taxes deducted.
The FairTax website contains a number of calculators that allow people to see the impact of the current system on their income, versus the proposed impact of the FairTax system. The website also touts the number of Nobel Prize winning economists and others who back the system, as well as the number of Congresspeople who have come out in support of the proposal. However, there has been no movement to allow this proposal to be debated before the House Ways & Means Committee.
I believe, after looking at the result of the calculations on the website, I’d much rather pay the FairTax when I buy something than have to go through the annual hassle of filing a Form 1040, and I’d love to see more money in my paycheck as a result. As long as the Democrats are in control of Congress, however, I don’t see this happening, because taxes are a way of keeping the citizenry under control, as well as legalized theft, and the Government’s way of saying that our money isn’t really ours.
Head for the website and read about it, and if you agree that it’s a better way to go, let Chairman Charles Rangel know by adding your name to the resolution to be submitted. It’s one step on the road toward finally taking our country back, one piece at a time.
