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Thread: 50 Reasons Why I Support the Fair Tax

  1. #1
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    50 Reasons Why I Support the Fair Tax

    50 Reasons I Support the FairTax
    (How many reasons can you give for supporting the present obsolete IRS tax system?)

    Those Who Know the Facts Love the Fair Tax
    www.fairtax.org

    FairTax and Individuals and Families (Family-friendly tax reform)

    1. It allows workers to keep 100% of their pay, with nothing withheld the IRS or for Social Security and Medicare payments.
    2. It is revenue neutral with the present income tax system, funding the federal budget at current levels.
    3. It shifts the tax to consumption. Records show that consumption is more stable than income, therefore the tax revenue stream is likely to be a more stable and predictable amount.
    4. It is progressive, a “prebate” of the tax amount up to the poverty level is given to everyone. This means that those spending below the poverty level have a net gain because the “prebate” exceeds the amount paid in taxes. (Under the present system the working poor pay the payroll tax even if they get a full refund of income tax withheld.)
    5. It doesn’t tax pre-owned items – clothes, cars, homes. Only new items are taxed when sold by a business to an individual.
    6. It is expected to remove an average of 22% of the cost of American made goods by removing the built-in payroll tax (the other 7.65% of earnings that employers pay), corporate income tax, and other business taxes that are now passed to consumers as an “embedded" tax of approximately 22% due to the cascading of income and payroll taxes paid by U.S. employers, at every step of production, to the U.S. Treasury. Competition will cause prices to fall by approximately that amount, on average.
    7. It allows families to save more for home ownership, education, and retirement. An average family making $50,000 will have $7,500 more spendable income.
    8. It removes the need for formal accounts of the 401(k), IRA, HSA, etc., varieties. Anyone, rich or poor, will be able to set up any kind of savings or investment account without regard to taxes or the government. No special knowledge of tax law is necessary.
    9. It makes educational tuition a tax-free expenditure of tax-free income.
    10. It eliminates the income tax and the IRS. Members of Congress and the public overwhelmingly agree that the current internal revenue code is cumbersome, intrusive, coercive, and inefficient.
    11. It eliminates 90% of the cost of compliance. American families and American businesses waste an estimated $250 – $600 billion per year (and countless hours of time) doing the paperwork necessary to comply with the current tax code. That is roughly $1,000 – $2,000 annually for every man, woman and child in the U.S. (Businesses typically pass their tax bills and compliance costs on to the consumer, i.e., individuals and families.)
    12. It’s simple, unambiguous, and certain, the opposite of the current tax code, 60,044 pages and counting.
    13. It assures that no American will find, at the end of the year, a need to get a loan to pay taxes as an alternative to penalties, interest, or cheating.
    14. The broader tax base comprises everyone spending money in the U.S., including the ten percent of our economy (an estimated $1 trillion) that today is underground or under the table. Under the FairTax, the illegal drug dealer will pay his tax just like the rest of us when he buys his sunglasses, BMW, and other items, as will those who work for cash and undocumented immigrants, all of whom receive government and societal benefits.
    15. It encourages work by letting workers keep 100% of their earnings and giving a rebate, in addition, making the notion that “the more you work, the more money you have”, a reality, unlike the current system where welfare is lost when you go to work, so the first dollars earned after taxes just offset what a welfare recipient is currently receiving in assistance, so working is perceived as disadvantageous.
    16. It allows more of the lower income families to become home owners by allowing a second job income above their current income (all tax free) to be applied to a mortgage. Money for down payments for homes is also saved totally tax free, causing it to accumulate faster.
    17. It has the result that all lending in America will be at the equivalent of today’s tax exempt interest rates, which are 25%-30% less than today’s taxable home mortgage interest rates. This will create a huge boom in housing purchases and allow existing homeowners to refinance and reduce their cost of homeownership substantially.
    18. It allows families to retain farms and businesses in the hands of those who built them through the elimination of the death tax.
    19. It allows families to give tax-free assistance to one another by eliminating the gift tax.
    20. It gives individuals (and businesses) the right to donate as much as they want to in a given year to charitable causes, without concern for exceeding an allowed limit on giving.
    21. It encourages individuals to self-insure, making the health system more direct-pay (no 3rd party pay), thus bringing costs down.
    22. It puts an end to the anxiety for honest taxpayers that begins soon after January 1 for most of use, culminating in wondering whether we’ve claimed everything we legally could and nothing we shouldn’t, all without raising questions at the IRS. It makes April 15 just another day. (Perhaps it will be a holiday after the FairTax is enacted!)
    FairTax and Social Security and Medicare
    23. It eliminates the regressive payroll tax that hurts the poor. Currently, every one of us is taxed a minimum of 7.65% on our first-dollar of wages up to $90,000 (the cap for FICA, not Medicare), if we earn that much. It provides funding for Social Security and Medicare at a level equal to or greater than the present.
    24. It provides that all 290 million Americans and 51 million visiting tourists fund Social Security and Medicare with their purchases. Today only 110 million workers fund these programs via deductions from their paychecks.
    25. It assures that the wealthiest Americans will be voluntarily helping to fund social security with every last dollar they spend above the poverty level. Today, earnings are subject to FICA taxes only up to $90,000. The wealthiest Americans therefore do not pay into the system above that amount. If their earnings are from investments, no earnings fund the Social Security system.
    FairTax and the Economy
    26. It increases investment in business by eliminating the capital gains tax.
    27. It allows for better planning by businesses, because they no longer have to consider tax implications for everything they do.
    28. It makes higher employment or better compensation possible in the small business sector, where today it costs approximately three dollars in compliance costs to pay one dollar in payroll and income taxes.
    29. It makes American products more competitive overseas by removing the embedded tax from them, thus lowering the prices of our exports, which compensates for low foreign wages.
    30. By making our exports more competitive overseas, it lowers our balance of trade deficit and increases employment at home.
    31. By removing the embedded tax from them, it makes American products more competitive with imports here, compensating for the low cost of imported products from which taxes have been removed before exportation to the U.S.
    32. It encourages investment in companies located in the U.S., thus providing a home for money already in the U.S. and attracting more. The U.S. will be the most attractive tax-free haven in the world for doing business.
    33. It encourages repatriation to the U.S. of money held by U.S. individuals and companies now in foreign countries, with no tax consequence. American companies will return from offshore and overseas.
    34. It results in a windfall profit, likely to be invested in job-making businesses, for many of those holding taxable corporate high interest bonds at the time of passage of FairTax, since the bonds will not be taxed under FairTax. (Currently, a higher interest rate is usually paid to entice investors to buy the corporate bonds rather than go with the lower interest, but tax free, municipal bonds.)
    35. It results in Federal Reserve rates being based on current consumption, which is rather stable, instead of future earnings, which are less predictable, resulting in surer inflation prevention.
    36. It reduces production costs for farmers and other subsidized businesses, leading to a reduction in subsidies, thus reducing the federal budget.
    37. It moves many individuals now providing tax advice (return preparation, advice, accounting, planning, and records maintenance) into an expansive economy where they will be producing goods and services. There they can add to the standard of living of all Americans and likely earn more than they do currently, instead of shuffling paper for the government (and not contributing anything economically to society).
    FairTax and Churches and Non-profit Organizations
    38. It frees churches and other non-profit organizations from the expense of filing tax returns and paying their half of Social Security and Medicare payments for employees. There will no longer be any 501(c) (3), 501(c) (4), etc., non-profit tax status, because there will be no more tax to be exempt from.
    39. It restores to churches and non-profit organizations the 1st Amendment right to engage in free speech, without fear of losing their tax-free status.
    FairTax and Rights and Freedoms
    40. It restores the 4th Amendment, protecting against unreasonable searches and seizures, from which the IRS presently is exempt.
    41. It restores the 5th Amendment, which guarantees the right to due process. Under current systems the IRS has their own courts with their own set of rules not included in the 5th.
    42. It restores individual privacy. The government no longer needs to know where you work, what you are earning, and what you are doing with it.
    43. It relieves citizens of the risk of facing the shift in burden of proof that is so common with the current system, i.e., the taxpayer is guilty unless innocence can be proved, but even the IRS staff sometimes gives conflicting interpretations.
    44. It eliminates the need to have a "marriage" clarification declaring who you live with, as that no longer has any bearing at all on a state or federal sales tax.
    45. It eliminates the need for courts to decide which divorced parent gets to take the tax deduction for children.
    FairTax and Government and Educational Entities
    46. Without FICA to pay, most states, counties, municipalities, and school districts will see a large increase in their state budget revenues, additionally lowering the overall tax burden (State & Federal) for most Americans.
    47. It eliminates the administrative costs incurred by states in collection of state sales taxes because states will piggyback the state tax collection onto the national tax collection, for which they are compensated by the FairTax ¼% administrative cost give-back. (Retailers receive an equal amount for collecting the FairTax.)
    FairTax and Politics
    48. It cleans up a major flaw in campaign financing, eliminating campaign donations for "tax favors".
    49. It eliminates wrangling in Congress over tax cuts, the tax code, and who is or is not paying a fair share of the tax bill, providing more time for debate on more productive issues.
    FairTax and the Environment
    50. It’s good for the environment. Reportedly, the IRS sends out 8 billion pages of forms and instructions each year. Laid end to end, they would stretch 28 times around the earth. Nearly 300,000 trees are cut down yearly to produce the paper for all the IRS forms and instructions. Also, since it taxes only new items, it would encourage buying tax-free pre-owned cars, clothes, furniture, houses, etc. Reuse is good for the environment, too.

  2. #2
    dugman_74 Guest
    Those are the same 50 reasons I support the fairtax

  3. #3
    Join Date
    Jul 2004
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    2,893
    Can someone please explain exactly what the fair tax is? I thought the fair tax was just a flat percentage of your income was taxes. I didn't realize it had to do with all of this. Even the web site is just selling it. Can someone give me a discription of what exactly the fair tax is?
    "You know the world is going crazy when the best rapper is a white guy, the best golfer is a black guy, the tallest guy in the NBA is Chinese, the Swiss hold the America's Cup, France is accusing the U.S. of arrogance, Germany doesn't want to go to war, and the three most powerful men in America are named Bush, Dick, and Colon. Need I say more?" - Chris Rock

  4. #4
    dugman_74 Guest
    www.fairtax.org gives all the details

    It's a consumption tax that gives tax rebates back to the poorest people while allowing all Americans to keep their entire paycheck and eliminating the IRS and all payroll taxes.

  5. #5
    Join Date
    Jan 2004
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    8,178
    Quote Originally Posted by zachvac
    Can someone please explain exactly what the fair tax is? I thought the fair tax was just a flat percentage of your income was taxes. I didn't realize it had to do with all of this. Even the web site is just selling it. Can someone give me a discription of what exactly the fair tax is?
    What the "fair tax" folks (quacks) are advocating is abolishment of the IRS and essentially replacing income tax revenue with a national sales tax. They fail to recognize that consumption falls when sales tax increase, they always have, in every study EVER.

    Personally, I am OK with the fair tax, mostly becuase I don't care much about my fellow human beings and as far as I am concerned, the middle class can starve in the streets becuase they tend to be morns anyway, and we do not need XXXXXX breeding.

    I calcualted my tax at one point using the "fair tax" system, and it would be about 80% less than it currently is, primarily becuase most of my "hobby" consumption (buying toys) falls under one corporate umbrella or the other and the fair tax system offers zero tax liability for B2B purchases. They also fail to address how we are going to fund government operations in the 24-36 months between dismanteling the current tax system and implementation of their "fair" system. Keeping in mind that we have not managed to sell out a bond offering for several years, it seems unlikely that we are going to be able to get the asians to finance a little 36 month haitus while we transition to a tax system that is at best foolish and in all reality moronic and ill concieved.

    No fear though, Zach, there is no chance of the "fair tax" system ever being implemented. I was upset a while back to see that legislators from MY STATE were listed as supporters. I contacted them to see if they had been labotomized. All explained that there is absolutly no chance of the thing ever being passed, BUT, they can put their name on it and pick up some votes from the mathematically challenged.

    There have been "fair tax" threads here before. You might want to browse through some of them if they are still on the system and take a look if you are interested. Yet another example of the middle calss being disproportionatly concerned with how much the wealthy pay in taxes and trying to do something (stupid) to rectify the situation.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  6. #6
    Join Date
    Apr 2007
    Posts
    11

    the fair tax discussion

    I support a taxation process that leaves me with the most money. I own my own business and paid 25% in taxes. Then I also have two kids and pay child support which cost 25%. Then the cost of living cost me 60%. The numbers arent adding up now.
    Help me vote to make a difference.

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    Vote on the issues not the people.

  7. #7
    Join Date
    Dec 2008
    Location
    Tucson, Az
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    50 Reasons Why I Support the Fair Tax

    I too support the Fair Tax.

    However if we voters ever unite against a congress that will not willingly give up its present power, the Fair Tax would be harder to sell, because we don't know nearly as much from experience as we do from a flat tax, which would only have to revise our present system.

    A flat tax would still be progressive but not also graduated.

    Some leaders of the Fair Tax and those of the Flat Tax are discussing the possibility of trying to join together and first go after a flat tax, and eventually move into a Fair Tax.

    This would be a huge plus but!!! we would still have to be vigilant with the percentage of the national income they spend.

  8. #8
    Join Date
    Oct 2009
    Location
    Athens Greece
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    1
    I Support the FairTax too!
    διάδρομοι γυμναστικής, όργανα γυμναστικής

  9. #9
    Join Date
    Nov 2009
    Location
    republic of Texas (as if that were true)
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    Do not support Fair Tax-here is why

    Absolutely not. I support the disolution of the IRS and the income tax. Along with SS and medicaid/medicare taxes and the removal of the federal gov't from any and all things not proscribed by law within the framework of the Constitution. But to be perfectly honest, the law that the IRS bases the code on completely and irrefuteably exempts all private enterprises and private earned money from work. Don't believe me? Take a look at the actual laws the code itself, not what the IRS publishes. The IRS has lied to you and stolen more than half your pay for your entire life. Find out how you too can actually make a difference in the way our gov't operates. Go to losthorizons.com/Cracking_the_Code for the truth. I've read the book and then went to the actual titles in the US Code of laws and found that the things contained on that site are 100% true as far as the contents of the book and what its author says. I can't verify all the refund checks posted there of refunds issued for 100% of all SS, medicare, medicaid and income taxes. But there are well over $10,000,000.00 worth of them from people all across the U.S. saying they are. Save your country and your rights as a US citizen before it is too late. Just go check it out and then read the actual laws in the Title haaving to do with the IRS. You need to go to the first website mentioned to understand what you will be looking for when going to gpoaccess.gov/uscode/browse.htm
    when at the gov't site scroll down to Title 26. That is the one for the IRS. Have fun and try not to get too angry. Just channel that anger toward the changes that have to take place in this corrupt gov't we are subject to.

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