The Fair Tax

What with all the election year hoopla, the debate over the fair tax has been quiet. Much opposition has been mounted against it due mainly to misunderstanding and fear.

The authors, talk show host Neal Boortz and Senator John Linder of Georgia have seemingly covered all the bases to make it fair for all. First off, because there would no longer be an income tax, it would eliminate one of Americas most Cherished institutions, the IRS!  The Fair tax would establish a straight 23% tax on everything purchased, from food, to cars, houses, medical, etc. There could be no exceptions, everything would need to be taxed, but that’s O.K. Start making exceptions and soon congress would have everything exempted.

In the competitive free enterprise market
, Because so many taxes would be eliminated the cost of producing the product would be reduced, thereby reducing the selling cost of the item, only taxes would be collected at the consumer level. All in all, because of competition, the product would retail for about the same price it does now, taxes included.

It is fair to everyone in that every house hold would get a monthly refund check for the taxes paid on goods and services needed to maintain a family at the poverty level. Therefore, the poor would pay no taxes.
Under this system, everyone would pay taxes, it wouldn’t matter if an individual was working for cash, illegal workers would pay, visitors from foreign lands,  whenever goods or services were obtained taxes would be paid.
Enormous sums of money would be saved by eliminating the need for businesses and individuals to file a tax return. Businesses now spend more time, money and energy figuring out how to save money on, and filing taxes than they do developing new products and services, sometimes these products and services are not offered to the public because of a tax disadvantage. Large companies like General Electric often have tax returns as high as 60 feet.

It will take a lot of hard work to get this passed through congress, congress doesn’t want to give up the control THEY have over our money,  they keep forgetting whose money it is. Plus some of the Einsteins in that institution simply don’t understand economics.  The only way our tax system will ever change is if we, John Q. Public, keep hounding them to change. With the popularity of email it is relatively easy for every citizen to communicate with their congressman .

Believe me, if congress keeps getting bombarded with emails and phone calls, in the final analysis they will change, they know their jobs depend on doing what we want, they don’t want to give up the cushy lifestyle they have created for themselves.

Now you can follow me on Kindle.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.