The FairTax – Freedom from Tyranny
What the heck is the FairTax plan?
In light of all the recent Congressional support for a phony fiscal “stimulus” plan to ostensibly rescue the American economy from falling into the proverbial abyss, let’s take an honest look at an incredible, infinitely better plan – one that we hear a lot about these days. Were it to be implemented, economists project it would spark an unprecedented period of economic expansion in the United States, not to mention worldwide.
It has been gaining a huge grass-roots base in recent years and is steadily gaining support in Congress, but it is also garnering new levels of distortion and outright lies by its detractors who have a vested interest in keeping the Internal Revenue Code monstrosity just as it is, with its plethora of loopholes, of special favoritisms and punishments, incredibly wasteful complexity, and its merry band of enforcers – Big Bubba’s army of IRS agents. Rest assured, when you hear the FairTax plan demagogued and maligned with scary propaganda, these people either want to desperately hang on to their entrenched power at all costs, or they have never actually learned the FairTax’s specifics in their entirety, and thus, simply repeat someone else’s lies and distortions.
For those of you who are not familiar with the FairTax plan, read the entire plan before making final judgment, and then prepare to be amazed.
What exactly does it do?
The Direct Benefits – The FairTax:
1) Eliminates all federal income taxes withheld from a worker’s paycheck (or otherwise would be paid later from their take-home earnings)
2) Eliminates all federal income taxes paid by employers “on behalf” of the worker (that is, the wealth earned by the employee that never makes it into their paycheck, but rather is taken from the employer by the federal government instead)
3) Eliminates the inheritance tax (aka, the death tax)
4) Eliminates all capital gains taxes (taxes paid on savings interest, for profiting from selling stocks or other investments, or lending capital)
5) Eliminates all gift, gambling, windfall, and any other type of income tax
6) Eliminates paying taxes on Social Security checks, or any other government benefits
7) Eliminates the AMT – Alternative Maximum Tax (which threatens to swamp huge new numbers of middle-class Citizens each year)
8) Eliminates all income taxes on corporations (taxes which are, in actuality, paid for by passing it on to their employees, shareholders, and customers)
9) Replaces all of the above taxes with a single, fair, national sales tax, only on new goods and services, at the retail point of sale, at a tax-inclusive rate of 23% (this rate, by design, is set at the level best-estimated to be ‘revenue-neutral’, to generate the current level of existing revenue for the federal government. Reduced amounts of taxation, and/or spending, is an independent legislative issue from the FairTax system itself)
10) Pays every American Citizen, at the beginning of each month, a Prebate check to cover the taxes paid up to the poverty level for all the basic costs of living
11) Repeals the Sixteenth Amendment to the U.S. Constitution (This amendment, ratified in 1913 under the guise that it would be kept minimal and unobtrusive(!), gave the power to the federal government’s agents to seize the paychecks of its Citizens)
The Big Payoff – These are the real effects – The FairTax will:
1) Eliminates the IRS as we know it – no more personal or corporate audits, and the massive coercion, intrusiveness, and bureaucracy it derives and wields
2) Allows the employee to receive their ENTIRE paycheck, to realize all the wealth they have earned (without losing a sizeable portion to withholding, and losing another equal portion hidden by their employer, and seized by the federal government)
3) Eliminates the ridiculously onerous leviathan that is the Internal Revenue Code which would save billions of wasted hours of the Citizens’ time complying
4) Allows the resources spent on the symbiotic industry of tax accounting & filing preparation to be redeployed to more constructive purposes
5) Eliminates the non-productive drag of tax accounting and compliance internal to businesses (average of 22% embedded cost) – can then be redirected to wealth-creating activities
6) Lowers the wholesale costs of goods that companies pay for their supply chain materials so they can increase their competiveness in the marketplace
7) Allows the finished goods and services to be offered to customers in the marketplace at reduced retail prices (w/o all the hidden, embedded taxes)
8) Eliminates all corporate ‘welfare’ and myriads of corporate loopholes in the tax code encouraging a much freer, fair, and competitive marketplace
9) Allows businesses and commerce to compete in the marketplace w/o government interference, and without tax-manipulated advantages for favored companies
10) Eliminates the need for the AMT, and ‘negative taxing’ (welfare) social engineering such as the EITC – creeping socialism through tax-code manipulation
11) Encourages freer investing without the risk of government interference, and increased savings without fear of wealth-seizure later via tax-code manipulation
12) Puts downward pressure on welfare programs (and social engineering) via use of the universal ‘prebate’ (a rebate paid in advance of purchases up to the poverty level)
13) Allows U.S. companies and their products to globally compete by eliminating all of the embedded taxes – this means more trade, investment, and more jobs in America
14) With a stronger economy, elimination of tax risk and government interference, and lower prices – this puts a real downward pressure on consumer interest rates
15) Encourages businesses who have sent jobs overseas, and many $Trillions in cash into tax-shelters offshore, to be repatriated into the U.S. economy
16) Eliminates all onerous, hidden, and unfair methods of taxation with an extremely simple, single rate which is completely visible (which means it’s very difficult for the government to manipulate you through taxation without you instantly seeing it)
17) Eliminates the lost internal revenue from the underground and shadow economies (both legal and illegal) which currently avoid or evade the current tax structure
18) Allows the taxpayer to control whether, and how much tax they pay simply by their choice of purchases – the exact amount of tax being completely, immediately apparent
19) Not only does it put a new societal emphasis on tax-free savings and investment, but it also puts a premium on reusable, recyclable resources too (since only new retail goods are subject to the sales tax – truly being taxed only ONCE, ever)
20) It is eminently fair, that businesses are freed from taxation because only the People pay the taxes ultimately, and because the People are taxed exactly as equals (thus, by eliminating the unequal tax-code manipulations, it takes the corruptive power away from politicians, and returns it to the People to control their taxation -and by treating everyone, rich and poor, exactly the same as per the Constitution, we will all have a shared, and renewed stake in our American economy)
What will it take to get this done?
The answer is simple – You will. The FairTax legislation is called H.R. 25 in the House of Representatives (S.R. 25 in the Senate), and has been introduced every year now in Congress for debate. It will take your, and my, perseverance to communicate with our federal representatives that we will not stop the groundswell of support for an incredibly liberating tax code until the FairTax is signed into law and is implemented.
What’s not to like about this Stimulus Package??