This includes the drug dealers and prostitutes and everyone else who benefits monetarily from illegal activities. They get to slip by without paying their share, taxes would go down if everyone paid their share. Us hardworking families have to make up the balance!
The Americans for Fair Taxation say it best; pay tax on what you spend, not what you earn. Tax consumption, not earnings. Why didn't they think of this before?
For more details on how it works, check it out at www.fairtax.org
It sounds good to me!
The problem with that while it is not fair to those who do pay their taxes, the taxes on what we but would have to be increased to compensate. And this is so much money that we get from taxes that it is not reasonable to do that. Where are we gonna get the money for Social Security amongst many things.
Because the wealthy buy more, they'll pay a "naturally-ocurring" progressive tax load by virtue of the degree of their "conspicuous consumption." This occurs naturally, without the barbs inherent in a system where these are artificially derived by Politicians, in concert with lobbyists and special interests; and enforced by a system that is needlessly costly, and intrusive.
By taxing consumption, rather than income, the following benefits ensue:
FOR INDIVIDUALS:
* No more tax on income - make as much as you wish.
* You receive your full paycheck - no more deductions.
* You pay the tax when you buy "at retail" - not "used."
* No more double taxation (e.g. like on current Capital Gains).
* Reduction of "pre-FairTaxed" retail prices by 20%-30%.
* Adding back 29.9% FairTax maintains current price levels.
* FairTax would constitute 23% portion of new prices.
* Every household receives a monthly check, or "pre-bate."
* Pre-bate equals payback for taxes on spending to poverty level.
* FairTax's pre-bate ensures progressivity, poverty protection.
* Finally, citizens are knowledgeable of what their tax IS.
* Elimination of "parasitic" Income Tax industry.
* NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals.
* Those possessing illicit forms of income will ALSO pay the FairTax.
* Households have more disposable income to purchase goods.
* Savings is bolstered with reduction of interest rates.
FOR BUSINESSES:
* Corporate income and payroll taxes revoked under FairTax.
* Business compensated for collecting tax at "cash register."
* No more tax-related lawyers, lobbyists on company payrolls.
* No more embedded (hidden) income/payroll taxes in prices.
* Reduced costs. Competition - not tax policy - drives prices.
* Off-shore "tax haven" headquarters can now return to U.S.
* No more "favors" from politicians at expense of taxpayers.
* Resources go to R&D and study of competition - not taxes.
* Marketplace distortions eliminated for fair competition.
* US exports increase their share of foreign markets.
FOR THE COUNTRY:
* 7% - 13% economic growth projected in the first year of the FairTax.
* Jobs return to the U.S.
* Foreign corporations "set up shop" in the U.S.
* Tax system trends are corrected to "enlarge the pie."
* Larger economic "pie," means thinner tax rate "slices."
* Initial 23% portion of price is pressured downward as "pie" increases.
* No more "closed door" tax deals by politicians and business.
* FairTax sets new global standard. Other countries will follow.
A useful exercise for every reader of this posting would be to actually visit FairTax.org and sign the "FairTax Petition" in order to amass a movement of numbers. It is only in numbers that politicians will sit up and take notice (although 60 members of Congress have already seen the future, and have co-sponsored HR 25/S 25 combined) the albatross of a tax system we now have will be changed for the better.
Rock on,
Ian