The Fair Tax – Do You Know What It Is? Do You Support It?

Click here to see what it is.

The Fair Tax is basically a national consumption tax.  This is a more fair way to tax our people.  I would love to see us go to this type of tax.

The FairTax: (from their website)

  • Abolishes the IRS
  • Closes all loopholes and brings fairness to taxation
  • Ensures Social Security and Medicare funding
  • Brings transparency and accountability to tax policy
  • Allows American products to compete fairly
  • Reimburses the tax on purchases of basic necessities
  • Enables retirees to keep their entire pension
  • Enables workers to keep their entire paycheck

What do you think?  Would you like to see this change in our tax system?

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5 Responses to The Fair Tax – Do You Know What It Is? Do You Support It?

  1. Ian says:

    Fred, Fred, where’s your cred
    ( http://snipurl.com/ftfredlukewarm )?
    Will you let me keep my bread?
    FairTax, Yes!
    ( http://snipurl.com/scrapthecode )
    ‘er FairTax, No!
    ( http://snipurl.com/meltdowninprogress )
    Just another politico?
    Hope for tax reform, I see,
    Will be voting HUCKABEE!
    ( href=”http://snipr.com/fthuckabeeonirs )

    Mike Huckabee is an adroit public speaker; he communicates his message in life-like, cogent terms, with compelling examples like the story he told (at the Ames Straw Poll) of what his then-11-yo daughter entered into the “Comments” section of a Visitors Book after visiting the Yad Vashem holocaust museum: “Why didn’t somebody do something?” Very effective.

    Huckabee is all about calling his listeners to “do something,” to awaken them to their own empowerment, and summon them to action in order that “Main Street,” and not “Wall Street,” will prevail in guarding the values and beliefs upon which the Republic was founded.

    Huckabee puts his listeners at ease, and reassures them, articulating clear concepts in a natural, easy style (no doubt something well-cultivated as a pastor). He’s not angry or demanding, like a Ron Paul, nor is he as “rigidly-scripted” as Romney, and his large brown eyes peer through a humble demeanor, drawing a striking contrast to a somewhat mechanical-squinty Brownback. One can easily imagine sitting comfortably with this man over a cup of coffee at the Main Street Cafe.

    Most importantly, Huckabee convinces many that he is ONE with the FairTax grassroots movement ( http://snipr.com/fthuckabeeonirs ). While many – like Romney, and others, who are invested in the current income tax system – seek to demagog ( http://snipurl.com/taxpanelrebutted ) the well-researched FairTax plan, its acceptance in the professional / academic community ( http://snipurl.com/econsopenletter ) 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 ( http://snipurl.com/meltdowninprogress ) because of the hidden aspects of the current system that make political accountability impossible.

    Romney’s recent WEAK response to FairTax questioning on “This Week with Geo. Stephanopoulos ( http://snipurl.com/stephanopoulosdebate )” drew a sharp contrast between Huckabee and all other presidential front-runners who will not embrace it. Huckabee understands that what’s wrong with the income tax can’t be fixed with “a tap of the hammer, nor a twist of the screwdriver.” That his opponents cling to the destructive Tax Code, the IRS, preserving political power of granting tax favors at continued cost to – and misery of – American families, invigorates his campaign’s raison d’etre.

    Of the FairTax, Huckabee asserts that 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, FLAT, and FAMILY FRIENDLY, loophole-free, and everyone pays their share
    • LOW TAX RATE is 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

    A detailed benefits analysis of the plan (from The FairTax Book) explains Huckabee’s ardent advocacy:

    For INDIVIDUALS:
    • 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 tax payback” for 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
    • NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals
    • 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

    For BUSINESSES:
    • 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

    While passionately supporting FairTax, Huckabee understands that, if elected President, Congress will have to present the bill for his signature. His call to action goes beyond his candidacy, Main Street will have to demand ( http://snipr.com/scrapthecode ) that their legislators deliver the bill.

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  2. Robert J. Ransom, Jr. - ChFC says:

    Passing the FairTax should be the goal of every American! Our current oppressive federal tax system must be replaced, not just reformed. We must all write, phone or fax our political representatives in Washington asking them to support and co-sponsor the FairTax Plan. This is a professional opinion of a retired Chartered Financial Consultant.

    Like

  3. The prebate idea makes me uneasy for this reason: the government would need to know poverty levels in all areas of the country. States and cities would have incentive to fudge numbers to try to get a greater prebate back for their residents.

    Couldn’t we simply not tax items of necessity in the first place?

    I’m not smart enough to have a good idea how well FairTax would work, but I’m certainly no fan of the current system.

    Like

  4. Ian says:

    Consider the “prebate” as a taxes refunded (could utilize the Social Security system logistically). The Dept. of HHS determines a number which *could* (and probably ought to be) reasonably be indexed to different sections of the country.

    The problem with “tax favors” (tax code) arises with exceptions, because then lobbyists step in, and the process of complexity starts anew.

    It’s essential to get involved in order to stave off the economic disaster that lays up ahead.

    Like

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