Mood:
chillin'Now Playing: Is it a good one?
Topic: Time to Reform.....
We have all heard the talk. Neal Boortz talks about it all the time. What it is, is the FairTax Plan.
Neal isn't the only one talking of the benefits of such a tax.
If the politicians would just stop playing politics with our money, they would see them too. And there are many. Ones that will be discussed here.
The income tax system of this country has been in place for a long time, and with taxes going up every year, even though they don't have too, it is becoming evident that the government is taking much more than it's fair share, and much more than it needs to take.
And almost anyone who wants to know what is going on, can find out. Though talking to your government representatives may not be the way to go about this, as most oppose the FairTax Plan. I think mainly because they are afraid that they may lose some money to support the cushy lifestyle that most of them have grown accostomed too. Ones like Teddy Kennedy are the worst of the bunch. And that is complete bull.
They were, for one thing, not elected to become rich or live like Kings, even though ones like the idiot listed above think so, they were elected to represent US.
But getting away from that, here is how the FairTax Plan would work, and how, if implemented, would not only help America, but save Americans headaches come April 15th. For one thing, there would be NO income tax. No income tax means NO APRIL 15TH DEADLINE FOR TAXES. And that in itself would be a good enough reason don't you think? Here is how the FairTax Plan would work:
A Brief Summary of the FairTax Plan
The Fair Tax proposal is a comprehensive plan to replace federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security/Medicare, self-employment, and corporate taxes. The FairTax proposal integrates such features as a progressive national retail sales tax, dollar-for-dollar revenue replacement, and a rebate to ensure that no American pays such federal taxes up to the poverty level. Included in the FairTax Plan is the repeal of the 16th Amendment of the Constitution. The FairTax allows Americans to keep 100 percent of their paychecks (minus any state income taxes), ends corporate taxes and compliance costs hidden in the retail costs of goods and services, and fully funds the federal government while fulfilling the promise of Social Security and Medicare.
Americans take home their whole paychecks.
Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks.
No Federal sales tax up to the peverty level means progressivity like today's tax system.
To ensure no American pays tax on necessities, the FairTax plan provides a prepaid, monthly rebate (prebate) for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax?
No Tax on used goods. The amount you pay to fund the government is totally visible.
With the FairTax, you are only taxed once on any good or service, that sales tax is charged just as state sales taxes are today. If you choose to buy used goods - used car, used home, used appliances - you do not pay the FairTax. If, as a business owner or farmer, you buy something for strictly business purposes (not for person consumption), you pay no consumption tax. When you decide what to buy and how much to spend, you see exactly how much you are contributing to the government with each purchase.
Retail prices no longer hide corporate taxes or their compliance costs, with drive up costs for those who can least, afford to pay.
Did you know that hidden income taxes and the cost of complying with them currently makde up 20 percent of more percent of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices - from an average 22 percent on goods to an average 25 percent on services - for everything you buy. If competition does not allow prices to rise, corporations lower labor costs, again hurting those who can lease afford to lose their jobs. Finally, if prices are as high as competition allows and labor costs are as low as prctical, profits/dividends to shareholders are driven down, thereby hurting retirement savings for moms-and-pops and pension funds invested in Corporate America. With the FairTax, the sham of corporate taxation ends, competiton drives prices down, more people in America have jobs, and retirement/pension funds see improved performance.
The incometax exports our tobs, rather than our products. The FairTax brings jobs home.
Most importaly, the FairTax does not burden U.S. exports as they are with the current income tax. So the FairTax allows U.S. exports to sell overseas for prices 22 percent lower, on average, than they do now, with similar profit margins. Lower pirces sharply increase demand for U.S. exports, thereby increasing job creation in U.S. manufacturing sectors. At home, imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparision to other countries' value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.
The FairTax strategy is revenue neutrality: Neither raise nor lower taxes so consumer costs remain stable.
The FairTax pays for all current government operations, including Social Security and Medicare. Government revenues are more stable and predictable than with the federal income tax because consumption is a more constant revenue base than is income.
For example, if you were in a 23 percent income tax bracket, the federal government would take $23.00 out of every $100.00 you made. With the FairTax, if the federal government gets $23 out of every $100 spent in America, the same total revenue is delivered to the federal government. This is revenue neutrality. So, instead of paycheck-earning Americans paying 7.65 percent of their paychecks in Social Security/Medicare payroll taxes, pubs an average of 18 percent of their paychecks in federal income tax, for a total of about 25.65 percent, consumers in America pay only $23 out of every $100. Or about 30 percent at the cash resister when they elect to spend on new goods or services for their own personal consumption. And this tax is collected only on spending above the federal poverty level, providing important progressivity.
So you see, you can work with the FairTax plan.....and so can the Government, even though 99% of the Representatives in Washington say it can't be done. The only thing that you really have to do is to use Common Sense and you will see it too. Read the above that was taken from http://fairtaxgroups.com/index.php?topic=454.0
Go there and read it for yourself, or go to Neal Boortz.com and read about it. It is a very worthwhile thing, and will only serve to help America if it is ever implemented.
I checked out the link above and if copied and pasted into the address bar, it does work. As always........always remember,
God Bless America
-Robert-
