Addition to HR 25 – The FairTax Bill
January 16, 2009 by Charlie
Filed under About the FairTax
This section has been added to HR 25 – the FairTax Bill that was recently introduced:
SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.
If the Sixteenth Amendment to the Constitution of the United States is not repealed before the end of the 7-year period beginning on the
date of the enactment of this Act, then all provisions of, and amendments made by, this Act shall not apply to any use or
consumption in any year beginning after December 31 of the calendar year in which or with which such period ends, except that the Sales
Tax Bureau of the Department of the Treasury shall not be terminated until 6 months after such December 31.
I want to put this into plan English for those who does not understand. It is a provision added to the bill so there would not be double taxation. In other words Fair Tax and the Income Tax being collected at the same time. There are some concern this would have happen.
It is simply saying that when the Fair Tax (sales tax) is passed then there will be 7 years to repeal the 16th Amendment. If the 16th Amendment is not repealed then we revert back to the Income Tax. Then there is 6 month period for the Fair Tax (sales tax) to be repealed. This would help the Legislation to repeal the 16th Amendment after the Fair Tax (sales tax) has passed. I hope this helps all those who had concerns that we would be double taxed, as this addition is intended to prevent that.
Charlie Prochaska
Volunteer Community Coordinator
FaitTaxSOWEGA

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New @ FairTaxSOWEGA: Addition to HR 25 – The FairTax Bill – http://tinyurl.com/7xbw7f