This new tax would work like no other. It refunds everyone – in advance – for a portion of taxes they will pay each coming month. The only form of tax anyone will pay is at the cash register. This is a tax on consumption, not on income. It taxes what we spend, not what we earn. It calls for repeal of the 16th amendment to the Constitution, thereby tearing the income tax out by its roots.
Experts say this tax would have raised more revenue, these last three years, than the income tax. The current tax system – with its complex laws and codes – would be gone. The IRS would have disappeared, too.
Jobs would be plentiful. The reason? With no tax burden, new businesses would form. Existing ones would expand. Uncertainties about changing tax rules from Washington would have ended. Still, federal revenues would be soaring.
Here’s a dirty little secret. Under the current system, businesses are just indirect tax collectors for the federal government. Ask any business accountant. Prices of all goods and services are determined by adding up the costs of labor, raw materials, and all taxes. Companies that fail to recover tax costs soon go broke.
Why, then, tax companies in the first place? Let’s just release the “middle man” to do what he or she does best – build their businesses and create jobs.
To sum up, there is a tax proposal in Washington that will reignite our economy and bring back jobs. Its popular name is the Fair Tax.
As House of Representatives Bill 25 (H.R. 25), the Fair Tax currently has 62 members supporting it. Under S.122 it has the support of just six U.S. Senators. Your help is needed to increase those numbers.
Educate yourself by going to www.FairTax.org. Then, contact your congressperson and senators. Tell them they need to support this legislation NOW if they want your vote in the next election cycle.
David Leake is a Fair Tax volunteer in Bradenton, Fla.