Fair + Tax = FairTax
I'm not usually one to care much about Republican Debates, especially not in this field of candidates, but while catching up on the news this morning, I was struck by one issue that was dealt with at full-force last night: the FairTax.
Almost two years ago now, I read the book "FairTax" which, more than anything, is a manifesto by its authors demanding serious change in the way we collect and raise taxes in America. The authors suggest getting rid of the income tax and the IRS entirely and replacing it with a consumption based tax similar to sales tax.
At first glance, this seems odd, if not annoying. Then, when you look at the actual numbers, you get mad. FairTax means something close to a 25% sales tax on every purchase! That's criminal! It will make us all poor and destitute!
Well, maybe not.
Look at the figures, or read the book, and you begin to really understand what is currently going on with our money and taxes, and how the FairTax not only makes our tax code infinitely simpler, but it actually is more fair, and CHEAPER, while collecting the same amount of money (if not more) for the government.
Here are the figures:
- Right now, we all pay income taxes and payroll taxes and SS taxes, etc. etc. etc. Business also pay corporate taxes. The system to calculate these taxes costs the economy billions of dollars and individuals hundreds if not thousands of dollars each year. The system is no fair, places a disproportionate burden on the poor, and has HUGE loopholes.
- The FairTax system gets rid of all of this, and, instead, places a $.23 tax on every dollar spent on new goods and services.
- Without the corporate taxes that are currently in place, prices are expected, over the long-run, to fall almost 20%. This means that the change in prices of goods and services pre- and post-FairTax are nearly unchanged.
- The tax is collected in the same painless, easy way that sales taxes are currently collected.
- To ensure that the poor are not burdened by the tax, every American family is sent a pre-bate each month equal to the amount of FairTax that would be spent by their size family on goods and services up to the point of poverty. That means that the poor are essentially paying no taxes, and everyone else only pay taxes to the extent that they choose to spend disposable income.
I could go on, and on, but I won't. Read the book. Go to the website. Learn about it for yourself. Then, start lobbying our Democratic friends to support this common-sense, progressive, liberal change in our political system as well!

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