Friday, September 28, 2007

Americans for Fair Taxation

Here's an article on the FairTax written by Neal Boortz on September 11th. It starts out with:

Fear of the FairTax

by Neal Boortz

September 11, 2007

Perhaps you’ve noticed lately it sure hasn’t escaped our attention that the FairTax proposal (H.R. 25) is really creating quite a stir lately. Former Arkansas Governor Mike Huckabee’s endorsement of the FairTax brought him a second place finish in the Republican Iowa straw poll several weeks ago. No less than six Republican presidential candidates, and one Democrat, endorse the idea, and the GOP’s newest candidate, Fred Thompson, has said that he would sign the bill if it were passed by Congress.

Every single day more and more Americans are becoming familiar with the FairTax and H.R. 25, and they like what they see. They read the book, study the FairTax website and they want to know what they can do to bring this tax reform proposal to fruition. And every single day more and more powerful people inside the Beltway who make their livings off the present tax system become just a bit more concerned.

Republican Presidential candidate former U.S. Senator Fred Thompson (R-TN) listens as he is introduced before speaking to voters at the Seacoast Republican Women Chili Fest in Stratham, New Hampshire September 8, 2007. One of the great surprises since Congressman John Linder, the author of H.R. 25, and I wrote The FairTax Book was the tactic developed by opponents to demonize the proposal. Let’s be clear here. We weren’t surprised that opposition surfaced, we were just surprised at the methodology. After all, Washington is full of very highly-paid individuals who make their living, and a very comfortable one at that, gaming the present tax system.

You can read the whole article at the link above.

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Ian said...

While many who are invested in the current income tax system seek to demagog the well-researched FairTax plan, FairTax's theoretical underpinnings have been professionally reviewed, and its acceptance in the professional / academic community continues to grow.

Renown economist Laurence Kotlikoff believes that failure to enact the FairTax - choosing instead to try to "flatten" what he deems to be a non-flattenable income tax system - will eventuate into an irrevocable economic meltdown, because of the hidden aspects of the current system that make political accountability impossible. Tom Frey, of the DiVinci Institute, foresees the coming collapse of the income tax system.

Here is why the FairTax MUST replace the income tax. It's:

• SIMPLE, easy to understand
• EFFICIENT, inexpensive to comply with and doesn't cause less-than-optimal business decisions for tax minimization purposes
• FAIR, loophole free and everyone pays their share
• LOW TAX RATE, achieved by broad base with no exclusions
• PREDICTABLE, doesn't change, so financial planning is possible
• UNINTRUSIVE, doesn't intrude into our personal affairs or limit our liberty
• VISIBLE, not hidden from the public in tax-inflated prices or otherwise
• PRODUCTIVE, rewards, rather than penalizes, work and productivity

Its benefits are as follows:

• No more tax on income - make as much as you wish
• You receive your full paycheck - no more deductions
• You pay the tax when you buy "at retail" - not "used"
• No more double taxation (e.g. like on current Capital Gains)
• Reduction of "pre-FairTaxed" retail prices by 20%-30%
• Adding back 29.9% FairTax maintains current price levels
• FairTax would constitute 23% portion of new prices
• Every household receives a monthly check, or "pre-bate"
• "Prebate" is "advance payback" for taxes payable on monthly consumption to poverty level
• FairTax's "prebate" ensures progressivity, poverty protection
• Finally, citizens are knowledgeable of what their tax IS
• Elimination of "parasitic" Income Tax industry
• Those possessing illicit forms of income will ALSO pay the FairTax
• Households have more disposable income to purchase goods
• Savings is bolstered with reduction of interest rates

• Corporate income and payroll taxes revoked under FairTax
• Business compensated for collecting tax at "cash register"
• No more tax-related lawyers, lobbyists on company payrolls
• No more embedded (hidden) income/payroll taxes in prices
• Reduced costs. Competition - not tax policy - drives prices
• Off-shore "tax haven" headquarters can now return to U.S
• No more "favors" from politicians at expense of taxpayers
• Resources go to R&D and study of competition - not taxes
• Marketplace distortions eliminated for fair competition
• US exports increase their share of foreign markets

For the COUNTRY:
• 7% - 13% economic growth projected in the first year of the FairTax
• Jobs return to the U.S.
• Foreign corporations "set up shop" in the U.S.
• Tax system trends are corrected to "enlarge the pie"
• Larger economic "pie," means thinner tax rate "slices"
• Initial 23% portion of price is pressured downward as "pie" increases
• No more "closed door" tax deals by politicians and business
• FairTax sets new global standard. Other countries will follow

It's well past time to scrap the tax code and pay for government the way that America's working men and women are paid - when something is sold.

Silvia said...

Yeah, what he said! :)