Gentlemen - with ALL due respect I do not think either of you have put forth the required effort to fully understand HOW the FAIR TAX plan would work. You have put forth just enough effort to confirm your confirmation bias.
HR 25 was first propositioned in 1999. Aristotle reportedly said "It is the mark of an educated mind to be able to entertain a thought without accepting it." With that being said here is a short list of benefits with the Fair Tax plan:
NO INCOME TAXES.
NO PAYROLL TAXES.
NO INHERITANCE OR GIFT TAXES.
NO CAPITAL GAINS TAXES.
NO SELF EMPLOYMENT TAXES.
It is a PROGRESSIVE TAX.
BUSINESS PURCHASES ARE NOT TAXABLE.
ELIMINATES the IRS abuse and 16,000 employees!!
NEVER FILE AN INDIVIDUAL TAX RETURN AGAIN.
INCREASES the TAX BASE from 155 million people to 250 million people.
Average family has $8,494 more in take home pay.
Effective tax rates lowered as much as 67%.
Taxes all consumption of goods and services in the United States once, without exception, but only once.
To prevent double, multiple, or cascading taxation. SO DECOMPOSED there is no cascading taxation and it is NOT a VAT. You pay tax on consumption ONE time based on what YOU decide to spend.
To simplify the tax law and reduce the administration costs of, and the costs of compliance with the current tax laws that exceed 70,000 pages and COST America 265 Billion in annual compliance costs or $900 per family.
Consider the elimination of the 15.3% payroll taxes and the fact that incomes have been flat since 1971.
Lowers the effective tax rates and is revenue neutral.
Consider the reduction of COGS and all of the taxes that are embedded in COGS - with the Fair Tax those layered taxes are GONE!
The Fair Tax brings jobs back to America by allowing companies to operate on our soil tax free rather than paying the current corporate income tax of 35 percent. Under the Fair Tax, various economists have predicted higher economic growth ranging from 7 to 14 percent over the current system, more jobs, and higher wages. And NO corporation actually pay taxes - WE DO!!! Under the FairTax Plan, money retained in the business and reinvested to create jobs, build factories, or develop new technologies, pays no tax. This is the most honest, fair, productive tax system possible. Free market competition will do the rest.
In the Federalists Papers by Alexander Hamilton #21 (all of them actually) is a good read: http://www.constitution.org/fed/federa21.htm
I would rather have the Flat Tax than the current system.
PEACE
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