Monday, August 22, 2005
The FairTax - A Revolution
Ok, so you may or may not have heard about the FairTax at this point. If you have then you are an astutely well informed individual. If not, then don't beat yourself up over it... its not exactly all over the news or anything... yet. The FairTax is a consumption tax, meaning, that it is a tax on ALL new items and services that is designed to completely replace the income tax system that we use today. It also rids us of the need for the I.R.S, Medicare Tax, Social Security Tax, as well as several others because it does away with the taxes witheld from your paycheck every week. Thats right, under the FairTax you would receive 100% of your paycheck every single time. You would no longer have to report or taxes to the I.R.S. on April15th of every year, as you would now be paying all of your taxes at the check out counter of whatever discount store you decide to shop at. And you'll know exactly how much you've paid on every transaction... because it will be printed right there on the receipt.
"How much taxes will I be paying," you're probably asking yourself. Well, the stated percentage tax that will be added will be 23 percent. Now, before you flip out let me explain to you WHY this is so much better than what we are paying now...
The 23 percent that you will pay at the retail level in the FairTax you are already paying... in the form of "hidden" taxes. Everything you buy has included in it all of the taxes that every group or institution that had a part in creating that item... That great looking pair of Levi's you just bought may have cost you 50 bucks, but right about 23% of that $50 was in taxes. Now, once the manufactureres and retailers of our goods are able to stop paying their income taxes, they will be able to lower their price by that very same 23%. If they don't drop their price and try to swindle the buying public, you can bet that they will either go out of business or be forced to lower their prices by the great and powerful "competitive advantage."
The other great thing about the FairTax is the fact that, just like in the current tax system, people under the poverty level do not pay the tax. How does that work if you pay the tax on the retail level?... Simple. Everyone... and I mean EVERYONE, receives a monthly refund check from the government for the amount of taxes paid on items up to the poverty level according to their taxable bracket. That same tax bracket is in use right now and is used to determine the amount of money that individuals must send on Necessities of Life. That amount depends on your tax bracket. For instance, if you were a single 25 year old male, you would receive less money in refunds than a single female with two kids, since she would have to spend more money on food and shelter. Its that simple.
The more you buy the more you pay in taxes. You can't get around them by under reporting your taxes to the I.R.S. Every drug dealer or tax evader or gun runner have to pay their taxes... no matter what, if they intend to eat, or drive their expensive cars, or own their huge houses.
Oh, did I mention that this tax does not include USED items? Thats right, since the taxes have already been payed on them there's no need to pay them again. Sounds good doesn't it. This tax system would cause a veritable market explosion since American businesses would no longer be taxed, thus taking back the tax advantage that foreign manufacturers have. The U.S. becomes a safe haven for business... and our lives are all the better for it.
And S.S. and Medicare are all paid in full... did if mention that?
See FairTax.org for more info or ask me sometime.
"How much taxes will I be paying," you're probably asking yourself. Well, the stated percentage tax that will be added will be 23 percent. Now, before you flip out let me explain to you WHY this is so much better than what we are paying now...
The 23 percent that you will pay at the retail level in the FairTax you are already paying... in the form of "hidden" taxes. Everything you buy has included in it all of the taxes that every group or institution that had a part in creating that item... That great looking pair of Levi's you just bought may have cost you 50 bucks, but right about 23% of that $50 was in taxes. Now, once the manufactureres and retailers of our goods are able to stop paying their income taxes, they will be able to lower their price by that very same 23%. If they don't drop their price and try to swindle the buying public, you can bet that they will either go out of business or be forced to lower their prices by the great and powerful "competitive advantage."
The other great thing about the FairTax is the fact that, just like in the current tax system, people under the poverty level do not pay the tax. How does that work if you pay the tax on the retail level?... Simple. Everyone... and I mean EVERYONE, receives a monthly refund check from the government for the amount of taxes paid on items up to the poverty level according to their taxable bracket. That same tax bracket is in use right now and is used to determine the amount of money that individuals must send on Necessities of Life. That amount depends on your tax bracket. For instance, if you were a single 25 year old male, you would receive less money in refunds than a single female with two kids, since she would have to spend more money on food and shelter. Its that simple.
The more you buy the more you pay in taxes. You can't get around them by under reporting your taxes to the I.R.S. Every drug dealer or tax evader or gun runner have to pay their taxes... no matter what, if they intend to eat, or drive their expensive cars, or own their huge houses.
Oh, did I mention that this tax does not include USED items? Thats right, since the taxes have already been payed on them there's no need to pay them again. Sounds good doesn't it. This tax system would cause a veritable market explosion since American businesses would no longer be taxed, thus taking back the tax advantage that foreign manufacturers have. The U.S. becomes a safe haven for business... and our lives are all the better for it.
And S.S. and Medicare are all paid in full... did if mention that?
See FairTax.org for more info or ask me sometime.
# posted by Bo : 5:05 PM
