I hear a lot about the FairTax, most people do not understand how it will help America. I cannot hit everything on this subject but you can purchase the FairTax Book and read it yourself. I will discuss an overview of what the FairTax is and how it works and I will explain why our current system only works for Washington.

Have you ever noticed that when an election comes around the term “Tax Cut” or “Raise Taxes” are the words you hear most? There is a reason for that; politicians use our tax code to manipulate behavior and purchase votes. If Congress wants someone to do something like, buy something, or invest, congress reduces taxes on it. While if they do not want something done, they will raise taxes on it. The tax code gives Washington it’s most powerful tool to control the populace. That is why most in Washington refuse to modify the tax codes. How can we stop this and take back the power to control our own lives from Washington?

The FairTax would do this, but how could a 23% tax on everything you buy help the American people? Because that is the only tax you will pay. You will receive 100% of our paycheck, no more Federal withholdings, no more State withholdings and no more Social Security withholdings. You receive all of your paycheck and the parts that your employer pays on your behalf go away. Therefore, if you earn $600 a week and bring home $430, with the FairTax, you bring home $600. The only deductions you will have out of your check will be the ones that you want, like 401K and Healthcare.

The only time you pay taxes is when you purchase something, a 23% tax. Your employer has to pay the Federal Government to employ you, with the FairTax, they will no longer be required to pay that. This gives the employee an opportunity to receive a raise in pay, because they do not have to pay the Federal Government to employ you, they make more money to invest in more jobs and have more money to invest in good employees.

*Because the tax is only on new items purchased, all investments are tax-free.

*No tax on investments, invest $1,000 and you make $500, you do not pay taxes on it.

*No tax on companies, 0% tax liability on companies, this will drive companies from all over the world to our doors, jobs galore.

*No more April 15th, no more filing income tax returns.

*The only time anyone pays taxes is when you purchase new items.

*No more embedded taxes, 30% or more of the price of an item is embedded taxes. You pay 23% tax that is all. Right now, you pay the 30% embedded taxes plus the tax at the register, that adds up to approximately 38% tax on each item you purchase. Plus your income tax on April 15th. All that will be gone, you pay a flat 23% when you purchase any new item.

*Drug dealers pay taxes, prostitutes pay taxes, every person pays taxes under this plan.

*But what about the poor? Those who live below the poverty level will receive a reimbursement check for all taxes paid. They would receive this check to cover all cost of taxes, no tax liability for the poor at all.

The FairTax has been researched repeatedly. The politicians do not want a system in place that will take this power away from Congress. They do not want to lose the most powerful tool they have, outside of the power of law. If you do not want to pay taxes, do not buy. If you want to purchase that new boat, you pay 23% in taxes.

Here is the best thing about the FairTax, most embedded taxes disappear, and with that, things cost less.

If you have a bumper that you produce for Ford, you have the cost of materials, the cost of employees and all the taxes associated with them. With the FairTax, those taxes are reduced and all employee-embedded taxes are gone. Therefore, this reduces the cost of production for that bumper; the bumper cost less to manufacture and you can sell that bumper at a lower price and still make more profit.

But how does this affect me?

*You have all of our paycheck to use as you wish.

*The economy will grow with real jobs and manufacturing.

*You can negotiate with your employer for a raise, because he is spending less to hire you.

*The prices of things will stay the same or go down, but you have your whole paycheck.

*Everyone will be equally taxed, except those who are below the poverty level.

*Necessities would not be taxed and you would receive a reimbursement check on

those.

This is just a summery of the FairTax, If you have other items of interest about the FairTax that I did not mention, please post any questions or additions.

I hope this helps to clarify a few issues about the FairTax and your input is welcome.

The FairTax Web Site

 

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