People, I urge you to pay attention to the proposal for a new tax system in America called the fair tax. It is a system that taxes what we choose to spend rather than taxing the income that we work so hard to earn. Do you understand what that means? No longer will our taxes be seized from our paychecks, instead we will pay taxes, voluntarily, on new goods and services that we choose to consume. Now doesn’t that sound better? I think it does.
We will receive our entire paychecks – no more Federal withholdings or Medicare or Social Security withholdings. We keep it all. This will put more dollars in our pockets that we can save, invest, or spend. Only then, when we decide to spend, will we pay a single dime in taxes.
This proposal involves a national retail sales tax of 23% (inclusive) on all new goods and services that we purchase. WAIT – how can we afford to pay 23% more for everything that we buy? Wouldn’t that eat up all the money we are keeping in our paychecks? All that money would be gone. Wrong folks. This is the beauty of the plan and one of the biggest reasons that it works. When the fair tax becomes law, the price of goods and services is expected to drop an average of 22% because the embedded and hidden tax costs in everything we buy will be removed. So, you will essentially be paying what you are now, maybe a little more, maybe a little less. It works. Furthermore, the government will be fully funded from that 23% sales tax. All government programs will remain intact, including Medicare and Social Security. Now, in case you skimmed over this before, only new goods and services will be taxed. Used cars, pre-owned homes, NO TAX.
Another benefit of the Fair Tax proposal is called the “prebate”. This is a little more complicated, so please, bear with me as I try to explain. The idea is that the “basic necessities of life” (bread, milk, toilet paper, etc.) should not be taxed. Great idea, I agree completely. How does that work? Simple, here you go: every household in America will receive a monthly check from the U.S. government as (p)reimbursement for sales tax paid on “basic necessities of life”. The Fair Tax bill provides a formula for determining who gets how much based on the current poverty level, the size of your family, and the current national sales tax rate. For example, a thirty-something married man, such as myself, with two children and a middle class income would receive approximately $500.00 per month. That sounds pretty good to me. Combine that with the money that we (wife and me) would be keeping in our paychecks and we’ll receive $1000.00 more per month than we’re “bringing home” now. That will pay off a lot of debt and buy me a little bit better fishing kayak.
Folks, we need to abolish the I.R.S. and repeal the 16th amendment to the U.S. Constitution. Imagine, no more income tax forms. How great is that? There are countless reasons to support the Fair Tax. I can’t discuss them all here. But, please look into it. It is revolutionary. It has a real chance of becoming law. What we need to do is overwhelm congress with our support. So, write, call, and email your congressmen and senators, attend “town hall” meetings, tell all of your friends. Do anything you can to help, please.
“There are risks and costs to action. But they are far less than the long range risks of comfortable inaction.” – John F. Kennedy
A great place to go for information is www.fairtax.org and fairtaxnation.ning.com. You will find the answers to all of your questions and information for contacting your elected representatives. Also, check out the two books by talk show host, Neal Boortz (www.boortz.com). They are available at bookstores and online. Although they are books about taxes, you will be surprised how entertaining they are.
Thank you for listening. Feel free to contact me via email at firstname.lastname@example.org. I would love to hear your comments, questions, suggestions, and even criticism.
By: T. Blake Gunnels
Additional benefits to the Fair Tax:
1. Creates jobs; brings jobs back to America
2. Eliminates the corporate tax
3. Eliminates the cost and hassle of income tax compliance
4. Allows families to save more, faster
5. Taxes the underground economy
6. Fairtax is plainly visible in products you buy
“Get action. Seize the moment. Man was never intended to become an oyster.” – Theodore Roosevelt
DON’T BE AN OYSTER!!!