More Rhetoric in Favor of The FairTax Code Reform Bill
In the previous article, I outlined some basic concepts of the FairTax and included some opinions from large proponents of the bill. THe following includes more rhetoric in favor of the bill.
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
At The Following Link From Neal Boortz's Website:
The extensive research behind HR 25, The FairTax Bill, shows that the average embedded taxes in every consumer product or service is about 22%. In some industries, such as leather goods, the embedded tax is smaller. In other industries, such as homebuilding and construction, the embedded tax is higher, but it averages out to somewhere between 22 and 23%. With the passage of The FairTax Bill, those embedded taxes disappear. These embedded taxes include the combined tax burdens of all entities involved in bringing those goods or services to market, and that includes you, the employee, and the taxes you incur as a result of your employment.
Other Typical Claims
1. Proponents claim the tax will replace income taxes entirely with a 22%-23% value-added tax (national sales tax), although this figure is hotly disputed.
2. Tax liabilities for workers are supposed to disappear entirely.
3. The FairTax includes provisions for a sort of living allowance for all citizens.
The jury is still out on the idea and will continue to be for a number of years, but if you want to see the full text of the actual FairTax bill in Congress right now, just click here. For some in-depth commentary from Neal Boortz about the concept of the FairTax and its implications for Americans, see the following link.