Tuesday, December 30, 2008

The time has come for FairTax: Let's rescue the economy

If you're unfamiliar with the concept of FairTax, a nonpartisan approach to eradicating our outrageously complex tax code (and the IRS with it), now's certainly a good time to learn about it.

FairTax replaces all federal income and payroll based taxes with a progressive national retail sales tax. All Americans receive a "prebate" -- a base minimum set of funds -- to ensure no one pays federal taxes on spending up to the poverty level.

FairTax thereby removes huge accounting burdens from government, businesses and individuals. Why is it so important to remove the tax accounting burden? Because the tax code has grown so complex, so out-of-control, so immense that entire organizations are required to keep up with it.

This embedded "tax compliance burden" adds as much as 25% to the costs of all goods and services we consume. And, of course, it increases the size of government because the burden requires that the IRS, regulators, and thousands of other bureaucrats keep the taxpayers honest.

The FairTax Act (HR 25, S 1025) 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 levies us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient and transparent solution to the frustration and inequity of our current tax system. The FairTax:

• Enables workers to keep their entire paychecks
• Enables retirees to keep their entire pensions
• Refunds in advance the tax on purchases of basic necessities
• Allows American products to compete fairly
• Brings transparency and accountability to tax policy
• Ensures Social Security and Medicare funding
• Closes all loopholes and brings fairness to taxation
• Abolishes the IRS

With the economy in desperate straits, it's time to eradicate our out-of-control tax code and thereby unleash American productivity.

Find out more about FairTax and send your own message to Washington. The time has come for FairTax.

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