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An Incredible Opportunity
for Congress and America
Government/Frank
Salvato, Managing Editor |
April 15, 2005
- It is a rare thing when the American people can get
excited about a piece of federal legislation that involves taxes. Normally,
our elected officials are trying very hard to figure out how to sugarcoat
yet another tax increase so they can supplement their habit of funding
things like museums for ground hogs and rodeos and tropical biospheres in
the farm belt. But a bill sponsored by US Representative John Linder offers
a "once in a lifetime” opportunity for our lawmakers to not only do what is
right by the American people, but do something that makes them look good as
well.
Say the word "change” to a member of congress and immediately their palms
begin to sweat and their eyes start to shift nervously from side to side.
Faster than the New York Times can put up another picture of a terrorist
with a hood over his head, politicians erect a security wall in an effort to
maintain the status quo.
But this time it doesn’t have to be that way.
Congressman Linder’s bill – H.R. 25, dubbed the FAIR Tax Bill – is a
brilliant piece of legislation. What it proposes is nothing short of genius
in its simplicity. The bill would replace our current inferior system of the
income tax with a revenue-neutral personal consumption tax. The IRS would be
eliminated as we know it and there would never be another tax deadline or
audit again. It sounds too good to be true, right? Well, it is within our
grasp. All we have to do is "lobby” our elected officials for it.
This proposed legislation would put in place a more equitable tax system
while affording a win-win situation for the American people, business and
government. In fact, there are no losers but for the political spendthrifts,
not even the people employed by the Internal Revenue Service would lose.
If the FAIR Tax system was adopted, taxpayers would be able to keep 100% of
their paychecks. In return a 23% consumer tax would be assessed on goods at
the time of purchase. That may sound high but consider that most Americans
fall into the 15% tax bracket and have to pay 7.65% in payroll taxes (just
about 23% right there). Then add in all of the hidden taxes placed on goods
and services, 23% is less than what most people pay now.
The
beauty of this system is that it is directly proportionate to what people
spend. Those who earn more tend to spend more and would pay more in taxes
because they make more and spend more. Those with lesser income tend to
spend less thus they would be paying less in taxes. The system is
proportionate unlike the system in place today.
Critics say that the proposed tax would be unduly harsh on those below the
poverty level. That couldn’t be further from the truth. Under the FAIR Tax a
rebate payment would be issued to every American household to replace the
sales tax paid on necessities. No American would pay taxes on necessities
and those living below the poverty line would effectively pay no taxes at
all.
Congressman Linder’s proposal provides a more stable tax revenue generating
system than the income tax because consumer sales vary less than does the
income of the American people. We have the most robust economy in the world
with consumer confidence that is rivaled by none. This tax system allows us
to benefit from that confidence.
Further, because this tax is assessed on the "end user” business-to-business
purchases and expenditures would not be taxed. The proponent organization
Americans for FAIR Tax
has commissioned research studies that indicate that would stimulate an
estimated 20% to 30% drop in consumer prices allowing for our spending
dollars to go even further than they do today.
In a last gasp of twisted rationalization I can almost hear the politicos
now, "But what of all the employees at the IRS and at the tax preparation
companies?”
To be sure, there will be a need for credentialed tax professionals within
the FAIR Tax system. Taxes are still being extracted so there will be a need
for auditors. The difference here is that auditors would be allowed to be
auditors instead of having to act like law enforcement officers. There would
be some who would be in need of employment after the change – there’s that
scary word again – most tax professionals are highly trained. With the
estimated 10.5% growth the FAIR Tax would stimulate, the economy would be
ripe to absorb these professionals into the private sector. This would
eliminate the IRS and its feeding off of the public trough at a cost of $250
billion every year.
Oh, and by the way, the FAIR Tax would make moot the ongoing argument about
Social Security and Medicare. Government would be fully funded under the
FAIR Tax system.
The only reason this exceptional piece of legislation may not become a
reality is that the politicians didn’t want it put in place. The only reason
they could possibly have to cheat you and me out of a superior and more
equitable system of taxation would be because they are afraid of "change.”
The new system might spotlight their pork barrel addiction and their failure
each and every year to balance the budget and spend within their means. The
only reason they wouldn’t vote for this intelligent piece of legislation is
greed.
If you are tired of taxpayer funded studies on the mating habits of the
South American three-toed tree sloth and redundant public works projects,
contact your elected officials today and demand that they support the FAIR
Tax. After all, they work for you, you shouldn’t have to work a third of a
year for them.
Related Reading:
Bill Would Dump IRS for Sales Tax
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=43764
Americans for FAIR Taxation
http://www.fairtax.org |
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Contact Frank
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