Most hardworking Americans despise the federal income tax system. Established by the 16th Amendment to the Constitution, this intrusive tax system gives government the power to invade and control every part of our lives. It destroys liberty. It has ruined countless lives. No one outside of government wants to keep the income tax system.
Our country’s economy boomed for 136 years without a permanent income tax. According to the IRS our tax system no longer works. They say that “non-compliance” is up 67% in the last 11 years. This forces you and I to pay an extra 25% in taxes. The IRS also says it has no idea how much it collects in payroll taxes.
The FairTax will change the way Americans are taxed. It reflects the wisdom and the original intent of our Constitution. The FairTax will help restore our Constitution and our rights. There is no surer way to take power back from the government and return it to America's citizens.
Introduced in 1999 as HR-2525 by U.S. Reps. John Linder (R-GA) and U.S. Rep Collin Peterson (D-MN), the FairTax legislation will, when enacted, trigger repeal of the 16th Amendment to the Constitution, revoking the federal income tax. No individual will have to file a tax return ever again.
The FairTax is extremely simple. It is a national retail sales tax. It replaces the income, payroll, gift, estate, corporate, capital gains, and self-employment taxes with a 23% tax on all purchases of new goods and services (used goods require no tax). This 23% sales tax will bring in exactly the same amount of tax revenue that is collected on an annual basis by the IRS. It will cover all the legitimate costs of government and every citizen will share the costs.
In 1998 alone, American citizens and corporations spent $225 billion to comply with the current system. Under the FairTax, these hidden costs will be eliminated and prices will decline 15-30%.
Suddenly, the "underground economy" will be taxed. Many people who receive a lot of income in tips or cash don't report that income at all. Criminals, drug dealers, tax cheats, and others who don't report income will now share in funding the federal government's operations because everyone has to buy retail goods and services. Under the FairTax, everyone, including foreign visitors and illegal immigrants, pays the tax when they buy something, such as clothing, jewelry, sporting goods, cars, etc.
Under the FairTax, each of us decides personally how much tax we pay, depending on what we wish to buy. Those who live within their means and spend wisely will pay less taxes. The FairTax provides a strong incentive to think, save and invest.
Major points of the FairTax will be:
* Take home your gross pay (no payroll deductions).
* Get a monthly rebate so no one pays federal taxes on necessities. Every American with a Social Security number will receive a rebate equal to the sales taxes paid for essentials so no American pays taxes for necessities. Poor people will never be taxed at all.
* Get rid of the IRS...permanently.
* Regain your privacy.
* You decide when and how much federal tax to pay.
* Our corporations and businesses will no longer export the cost of our tax system and they will be able to compete on a level field with foreign companies.
* The FairTax will put almost $2 trillion extra into the pockets of American taxpayers.
* Of 500 companies polled 400 foreign companies have stated that if we enact the FairTax they will build their next plant here. The other 100 companies said they would move their world headquarters here when the FairTax is enacted.
My book, America’s Best Kept Secret: FairTax will tell you about this efficient idea for our tax system. It tells you how you can take home your gross pay, like our parents or grandparents did before World War II. It shows you how to get rid of the IRS. You will have no more tax forms to fill out. You will have no more records to keep, just like our ancestors before 1913.
The "radical idea" is not the FairTax. The FairTax is a no-brainer. The radical idea is maintaining our current tax system. Please visit FairTax.org for research or buy my book, America’s Best Kept Secret: FairTax that explains the tax and the research that backs it up by clicking the advertising banner at the top-right of this Web page.