A federal bill that would do away with federal income tax and replace it with a national sales tax has been introduced again in the House of Representative after the same bill failed to get committee consideration in the last Congress.
The bill, H.R. 25, is sponsored by Rep. John Linder, R-Ga. Dubbed the "FairTax" proposal, the bill "will repeal all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes – and replace it with a revenue-neutral personal consumption tax," according to the congressman's website.
Because the 23 percent consumption tax is paid only by the end user, business-to-business purchases for the production of goods and services would not be taxed. An organization pushing Linder's plan, Americans for Fair Taxation, estimates consumer prices would drop by an estimated 20-30 percent as a result of the change.
Also included in the bill is a rebate payment that would go to every American household to replace the sales tax paid on necessities. Those in poverty, the bill's proponents say, would effectively not pay any tax under the new system.
Editors Note: As April 15th approaches and many of us agonise with a calculator and wrinkled bits of paper in hand let me be the first to say YES I SUPPORT THIS PLAN!!!!
I encourge all of you to check out the info here and ask you to spread the word to everyone you know.
1 comment:
Greeting In The Lord,
Oh, God, PLEASE let this happen! To never pay an income tax, Social Security Tax, Medicar tax, etc again. "What a wonderful world it would be..."
The great news is ALL the math works. Imagine, you keep ALL you paycheck. OK, all the federal taxes anyway. For most middle-class americans,(making between $25K & $75K), you will get an instant 30% raise.
But you say 23% sales tax is killer? Remember, it's only on new items. No sales tax on a used car! No sales tax at re-sale shops! Ebay will grow tremendously.
Oh, and remember your economics classes. Prices will drop easily 20% to 30%, mainly from the zero tax burden on the businesses. Most large business tax burdens are between 30% & 50% when you add up the taxes, accountants, legal fees, etc.
But in order to compete with re-sale shops, etc, new-stuff businesses will drop their proces an additional 10% to 15%, to make up for the tax.
This is a Win-Win situation for everyone; americans, businesses, and the government! Yes, the government will make more because we have the greatest economy in the world, and (despite the small resession) is growing at record rates. The goverment will make money on what this country produces, not on what people earn.
Of course, this is exactly why you'll hear most of the Demonrats, I mean, Democrats hate it. All of a sudden, they will not be in charge of the money you make. And they won't be able to take it from you before you get it.
Oh, and another side benefit, illegal aliens will finally have to pay taxes, instead of just milking off our govt.
Post a Comment