Now is the Time for FairTax
December 8, 2008 by Suzanne
Filed under About the FairTax
If there was ever a time for people to be aware of what the FairTax is, now is the time.
The FairTax would:
1. allow all workers to take home every bit of their paychecks and not be penalized for making more money.
2. provide a situation where all people would pay their own taxes – the drug dealers, the prostitute, the under-the-table paid person, the illegal immigrant, even tourists that come from other countries. No longer would we pay higher taxes to make up for people living here that do not work and/or pay taxes.
3. would stimulate the economy with 12 trillion dollars worth of US capital that is now overseas and abroad in order to keep it from the IRS.
4. would do away with the IRS – no more tax deadlines, no more paying people to do your taxes.
This is a short version of the way it works:
The FairTax would shift taxes from what we earn to what we buy – to a consumption tax. We would pay taxes not when we earn something but when we buy something at the retail level that is new and therefore has not already been subject to the tax.
Instead of taxes being taken out of your money that you work for, taxes would be funded by a flat tax on things that you buy that are new. It is estimated that the flat tax rate would have to be around 23% on items to have the same amount of taxes raised that are taken from each hard working individual now.
23% may sound like a lot – BUT consider this, items right now that you buy have on average a 22% tax embedded in the retail cost. Why is this? Because Corporations, businesses, etc. have to pay taxes – but in reality we pay their taxes because they embed 22% in the retail price of the item so they can take that 22% to help pay their tax obligation. If the FairTax was enacted, the retail price of items would actually go down, because corporations, businesses, etc. would not be under the same tax obligations they are now and therefore would not have to pass this cost on to consumers.
Something is severely amiss when we jump for joy when we find out that we will be getting back a tax “refund”, when in reality the “refund” we get back is just a fraction of everything else we paid in all year. They took more money throughout the year than they can justify or account for, and we are supposed to be grateful that, after all the months it had our money, during which time it did not work for us but for the government, we get something back? We gave them free use of our money for a year and then had to fight and file numerous forms to get our own money back!
Thomas Jefferson once said “We in America do not have a government by the majority. We have a government by the majority who participate.”
Please take the time to research the FairTax and get involved.
Karen Kardamis
