Fair Tax

I support the Fair Tax. The Fair Tax, in a nutshell, eliminates the Federal income tax process, as well as corporate Federal taxes, taxes individuals only when they spend not when they earn money, and allows everyone to know exactly how much they pay in taxes each day, each month and each year. Ask anyone how much they paid in Federal income taxes last year and many will say, "I didn't have to pay. I got a refund." In reality, these people likely had a tax liability of between 5% and 15% and have no idea how much of their money the Federal goverment actually kept.

By taxing individuals only when they spend the Fair Tax encourages savings. You don't need to put your money in a specialized retirement savings account to avoid tax penalties. You are not punished when you decide you need to spend a little of your savings instead of keeping it until age 65. If you earn $1,000 (net of deductions such as health insurance, child support, employee loan payment, etc.) you keep $1,000. There is no deduction for Federal income taxes, no deduction for F.I.CA., no deduction for Medicare.

The Fair Tax, being a national sales tax, makes it possible for the Federal government to tax foreigners on all of their purchases, thereby spreading out the Federal tax burden of US citizens. Think this isn't fair to foreigners? Well, they already pay sales tax at the state level any time they make a purchase. They pay taxes when renting cars, buying airline tickets, staying at a hotel. In essence, by way of corporate tax payments, foreigners pay Federal taxes that are built in to the price of the items they purchase.

Some may say the estimated 23% tax is too high. Not so! Most Americans currently pay between 5% and 15% through Federal withholding. They also pay F.I.C.A. and Medicare, as do their employers. Depending on the way a business is set up, either the business or the business owner pays Federal income taxes. These taxes drive up prices not only on the retail price of the product, but also at every step along the production process. Each business/business owner that makes a component or ingredient of the end product pays taxes! Add all of these taxes together and you will see 23% is a good number.

The Fair Tax is the fairest way for all Americans to pay our share of taxes and is the best way for each of us to know how much we owe the Federal government. The current Internal Revenue Code is more than 9 million words long! It is so cumbersome, that the IRS doesn't even know how to interpret it. Accountants and Lawyers become rich helping people fight the IRS. Let's stop the insanity and pass the Fair Tax!