The FairTax - Familiar With It? Never Heard Of It?
I am an activist volunteer for FairTax.org. The FairTax is a bill, authored by Rep. John Linder and introduced by him in the House and by Saxby Chambliss in the Senate, both from Georgia. Thumbnail sketch:
- Eliminates all payroll taxes from the federal level and replaces them with a national sales tax.
- Eliminates the death tax, the alternative minimum tax and all corporate taxes.
- Relieves the poor of 100% of the federal tax burden by instituting a "prebate" system that sends every household a check each month, based on the number in that household, not based on income, in anticipation of the bare minimum of spending on life's essentials. The annual payout is based on the US government's poverty level numbers as published from year-to-year, and as such, is adjustable for inflation and/or other cost of living considerations.
- Disbands and abolishes the IRS. 70,000+ pages of impossible-to-understand-or-fully-comply-with Tax Code is replaced by 150 or so pages of the most transparent and easy-to-understand tax system ever devised.
- Lays the groundwork for the repeal of the 16th Amendment, which authorizes the fed to collect taxes based on income.
- Creates the largest tax haven for business the world has ever seen. Will not only bring homegrown businesses that have fled overseas due in large part to confiscatory taxation back home, but attracts foreign investment as well. All research, and it is extensive, points to a 10% growth rate in the economy in the first full year after implementation.
- Virtually eliminates the underground economy from evading taxes. Illegal aliens, drug dealers, prostitutes, organized crime will all pay federal taxes every time they buy goods and services.
- Vastly reduces the ability of politicians and special interests (read: lobbyists) to intrude on the lives of Americans through manipulation of the Tax Code.
There's lots more. I am very well-versed on the intricacies of the plan and can answer most questions and/or concerns. What I can't answer, I know how and where to find the answers.
There is a lot of misinformation out there about The FairTax, some just simple ignorance of the facts, and some intentional smearing of a plan that takes more power from politicians and special interests and returns it into the hands of The People than any other piece of legislation in American history. So if you've heard things like, "The FairTax will add 30% to cost of everything you buy," please keep an open mind. It's not true, and if given an open-minded chance, I can show you that the overwhelming majority of criticism against the plan is based on assumptions, mistakes and outright lies that either must change the terms of The FairTax to make any sense, or that are wholly misrepresentations to begin with.
This is not Forbes' or Shelby's flat-tax plan. There are some good things about both of them, but neither gets rid of payroll taxes, the IRS or the Tax Code, nor does either plan give you, the individual, the ability to pay taxes voluntarily over and above what it takes to get by.
So let's talk about it. The worst that can happen is that we all learn something about a piece of legislation that is currently working its way through Congress. Oh, which reminds me, if you want to look up the text of the bill(s), they are H.R. 25 in the House and S. 1025 in the Senate.
Everyone agrees. The current Federal income tax system is broken. Patching up the existing code is pointless. It's time for a fresh approach, a fair approach.
It's time for the FairTax.
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FairTax Forums - Hear, Be Heard & Learn!
The Constitution, in Article I, Section 8, gives Congress the power "to lay and collect Taxes, Duties, Imposts, and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States."
In Article I, Section 9, the original document made clear that "no Capitation, or other direct Tax shall be laid, unless in Proportion to the Census of Enumeration herein before directed to be taken." It is moreover established that "No Tax or Duty shall be laid on Articles exported from any State."
Since 1913, our Constitutional rights to life, liberty, and property have been abridged and diminished by the imposition on each of us of Federal income, payroll, and estate taxes. This is an unconstitutional Federal assumption of direct taxing authority.
The Internal Revenue Service is the enforcement arm of the Federal government's present unjust tax system. Citizens, both in groups and as individuals, have repeatedly sought responses from the IRS bureaucracy as to the basis for the agency's tax policies and procedures. No answers have been forthcoming although a responsible government must be answerable to the people and has a duty to those it is supposed to serve.
We propose legislation to abolish the Internal Revenue Service, and will veto any authorization, appropriation, or continuing resolution which contains any funding whatsoever for that illicit and unconstitutional agency. We are opposed to the flat-rate tax, national sales tax, and value added tax proposals that are being promoted as an improvement to the current tax system. The Sixteenth Amendment does not provide authority for an un-apportioned direct tax.
Moreover, it is our intention to replace, with a tariff based revenue system supplemented by excise taxes, the current tax system of the U.S. government (including income taxes, payroll taxes, and estate taxes.)
To the degree that tariffs on foreign products, and excises, are insufficient to cover the legitimate Constitutional costs of the federal government, we will offer an apportioned "state-rate tax" in which the responsibility for covering the cost of unmet obligations will be divided among the several states in accordance with their proportion of the total population of the United States, excluding the District of Columbia. Thus, if a state contains 10 percent of the nation's citizens, it will be responsible for assuming payment of 10 percent of the annual deficit.
The effect of this "state-rate tax" will be to encourage politicians to argue for less, rather than more, federal spending, and less state spending as well.
To the extent permitted by the Constitution, we believe that the taxation of corporations is an appropriate source of government revenue. The Supreme Court has defined "income" as a "gain or increase arising from corporate activity or privilege." People are not corporations, and corporations need not be treated as "people" for the purposes of taxation.
There is substantial evidence that the 16th Amendment was never legally ratified. When elected, we will act to cease collection of direct Federal personal income taxes. We also support ratification of the Liberty Amendment which would repeal the Sixteenth Amendment, and provide that "Congress shall not levy taxes on personal incomes, estates, and/or gifts."
We support the use of motor fuel excise taxes, at rates not in excess of those currently imposed, to be used exclusively for the erection, maintenance, and administration of Federal highways. These taxes should never be used for "demonstration projects", mass transit, or for other non-highway purposes.
We support the use of excise taxes to curb the use of tax dollars for media advertising, and to provide so-called "tax abatements," "tax incentives," and "economic development grants," which are pretexts to raid the public treasury and rob the workingman for the benefit of wealthy interests favored by the politicians.