The objections to the Fair Tax are invariably voiced by people who don't understand it. The name says it all. "Fair!"
While I have agreed with and have been a proponent of HR25 for many years now (compared to the OUTRAGEOUS mess we have now such as basis calculations, at-risk calculations, passive activity/active participant calculations), (I have been a CPA & Enrolled Agent, etc. for 25+ years now)) it has so many of the flaws that our current system has it is not acceptable. Failing to absolutely force ALL participants into the tax system is a terrible mistake. All of the cheaters like drug dealers, prostitutes, gamblers, neighborhood grocers (food stamps), whomever, would all be forced into the tax payment system. I know that this sniffs of totalitarianism (which I absolutely hate), but we need to force everyone onto a transaction tax system, by eliminating currency and coin, that would be enforced by the contract banking winner every period (someone else defines how long) in each state. All transactions would be subject to a transaction tax with daily remission to the Treasury. The internal revenue service, as we know it, would be eliminated in it's entirety. The only loop hole would be bartering! Well not really. Let's say Joe will put a new deck on your house for $3,500, but instead of payment Joe asks that your 12 year old daughter will watch his small kids every weekday afternoon for a year. First of all Joe has to pay for materials to build the deck (pays tax). Also good luck with your teenage daughter or wife watching Joe's kids. She will want to spend someone's money for what she has earned (wants). Those who could prove their lack of financial ability to pay the transaction tax (by a means to be determined, harshly, based on facts and circumstances) would be entitled to a prebate just like HR 25. As a precursor to all of this, we would need to have Article 5 amendments to the U.S. Constitution that would reel in the Leviathan federal government to behave responsibly. Period.
We do need a new Federal Tax Code and that new better Federal Tax Code is defined by HR:25 the Fair Tax Bill!
Below is a historical example showing where our current failed Federal Income Tax started. These are 1913 Rates after the 16th Amendment passed and allowed the first Federal Income Tax. There were no deductions the tax was flat but graduated for income. This was because the Federal Income Tax was sold as a tax on the wealthy that would not apply to poor or middle class Citizens. Note this graduation was all about wealth redistribution power and control! Once passed the unscrupulous Representatives and Senators behind the Income Tax push knew they could increase the rate at the bottom or top which they did. In less than 4 years the rate more than doubled! The unscrupulous Representatives and Senators behind the Income Tax push also knew it would allow them manipulate the Income Tax to punish & control Citizens, pay off their contributors and allow them to grow their wealth and the Federal Government to the uncontrollable parasite it is today.
There can be no substantial Federal Tax Reform with out the repeal of the 16th Amendment to the U.S. Constitution! When someone promotes reform of the Federal Tax Code without the provision to repeal the 16th Amendment they are wasting their time and yours. There will be one of the greatest struggles ever witnessed by the Citizens of the United States when HR:25 is put before the full House. There are Trillions of dollars in favors and paybacks at stake. Don't be fooled, study the history of the United States before 1913 and after. The greatest growth and prosperity for the Citizens of the United States occurred from 1776 too 1913. In contrast the Federal Government and its Tax burden experienced its greatest growth after passage of the 16th Amendment that allowed the first Income Tax! When HR:25 is passed by Congress and signed into law the States will have the opportunity to vote on repealing the 16th Amendment. I for one look forward to that day. Not only that day but the day Citizens are no longer threatened by a overzealous abusive Federal Government using taxation as punishment for some and favoritism for others.
Note: $20,000.00 would be ~$476,000.00 in 2013 Dollars!
Married Filing Jointly
Marginal Tax Brackets
Tax Rate Over But Not Over
1.0% $0 $20,000
2.0% $20,000 $50,000
3.0% $50,000 $75,000
4.0% $75,000 $100,000
5.0% $100,000 $250,000
6.0% $250,000 $500,000
7.0% $500,000 -
Please, don't take my word for this, go to www.fairtax.ogr or http://thomas.loc.gov/cgi-bin/query/z?c113:H.R.25: House Bill site. Down load a copy of HR:25 it is only 131 double spaced typed pages long, yet replaces thousands of pages of current Federal Tax Code.
How about a reduced and simplified tax, for example 15% and no more than 100 pages. After all, there are many variations and choices of business options formatted to benefit us, with different tax features and platforms for a variation of lives. From individual one page to corporate to etc.... A reduced tax would need to stem from reduced government departments, systems, and programs. GREATLY reduced. But be very careful what you wish for, remember we are the last free country on earth, with options. My friend from Saudi Arabia, where they have NO taxes, also have NO freedom. And hey, I like my accountant, accounting is fun and profitable. Rand Paul for President.
The FairTax abolishes the IRS on the federal level. At the state level, the FairTax would abolish the NC Dept. of Revenue and reduce it to an accounting function only. ANY FlatTax does neither.
No tax ! Why pay into a system that doesn't care about the people ? Seems big corporations have worked the system so they pay no taxes ! Why should I pay ? Didn't we have a really big war over this before ? That's right you the Revolutionary War !!
The flat tax is the only way to go. It is fair to everyone with no loop holes. Who do you think have the extra income that will not get involved with the "Fair Tax". Who do you think spends all their money just to live? All the other taxes are social engineering. When will people wake up and realize we are all in this together and unfortunately taxes must be paid; but only to cover ESSENTIALS the common man cannot provide for himself, not things that he does not want to provide for himself.
I agree the Fair Tax would be better than any other system. Lets face it the tax system we have today is so difficult to understand and expensive to all of us that have to use CPA's.
The IRS is heartless and it is more like the iron hand of government. Look at all the people who have been victims of the IRS and their hard handed tactics. Americans need a break!
I submit that FairTax would have scored even higher if the second choice had been worded
the [Flat Income Tax]. How do they think this type of tax would be collect? The Flat Tax is an INCOME Tax. Just as the current tax "sys/tem", it would be taken from your paycheck.
If you would like to see more detail comparison on the FairTax vs the Flat Income Tax read Dr. Karen Walby's GRADING THE FAIRTAX HERE: https://docs.google.com/document/d/12eeQu8efantmLcDKay-ufPTAzbBvn7Ji8OpS19-GX9g/edit
Great Job NC Tea Party!
000 Ron Paul 2012 End the income tax, and all direct taxes.