The United States tax code is a mess of epic proportion. Politicians use it to make a game of you while tax evaders and crony capitalists use it to steal from you. You, the honest tax-payer.
The FAIR tax can stop to it, political class-warfare, and government reckless spending all in one fell swoop.
Consider the following Amendment as a replacement for the 16th Amendment to the United States Constitution:
“The Congress shall have the power to lay and collect a sales tax on all products, goods, and services sold on a consumer basis, from whatever source derived, provided that the tax be flat, as to not prefer one product, good, or service over another in the market place. The Congress shall be strictly prohibited from laying and/or collecting multiple sales taxes on any single product, good, or service rendered to the consumer (ie. Congress may not tax each part product as its manufactured or assembled, but may tax the finished product when sold).”
“This Constitutional Amendment can only go into effect upon repeal of the 16th Amendment.”
Thank you for your consideration and if you agree, please, send this proposition to your Congressional representatives.
I, often, hear politicians say that we, Americans, like to complain about the way they run things but offer no valid solutions to the problem. Well, here is a valid solution to one of the most screwed up, unfair, and undecipherable United States “codes” in existence.
The TRUTH is that politicians know an Amendment like this (much like the Balanced Budget Amendment) will remove their ability to politicize rhetoric at the American tax payer’s expense. Therefore, they look for reasons to proclaim it invalid or unworkable so they can continue with business as usual.
While realizing the FAIR tax excludes unregistered businesses that use cash transactions only, it has far fewer flaws than taxing income. Below, I have fielded a list of often asked question on the FAIR tax.
Frequently Asked Questions:
Q: What is wrong with the FLAT tax proposals?
A: Rep. Paul Ryan recommended a 25% flat income tax rate. While this guarantees that no legal tax payer pays over 25% of their income to the federal government, it does nothing to create more tax payers or stop tax evasion. As a matter of fact, Rep. Ryan’s plan still allows people to itemize and deduct income at the whims of legislators who can still negotiate tax breaks for them. In short, this changes NOTHING and ensures NOTHING to future tax payers. This is unacceptable.
Q: What is wrong with Herman Cain’s 9/9/9 tax proposal?
A: 9% income, 9% sales tax, and 9% business tax sound good on the surface. What this, actually, does is give federal government another venue to tax (sales). Further, as long as separate tax rates exists for sales, income, and business, Congressional officials are still able to use class warfare to divide Americans. In short, this changes NOTHING and, once again, ensures NOTHING to the future tax payers except that they are now on the hook for a sales tax as well as income and business.
Q: Why the repeal of the 16th Amendment?
A: Income taxes rely on the honest reporting of annual income. This has allowed the wealthiest and poorest in America to benefit at the expense of the middle class. As long as income remains the criteria for taxation, “the rich get richer, the poor get poorer, and the middle class pay for it; all due to politics”.
Q: How does the FAIR tax address class warfare?
A: Sales taxes are blind to ethnicity, economic class, age, gender, sexual preference, and so forth. Anyone makes ‘legal purchases’ within the United States borders will pay an equal amount of taxes to the federal government.
Q: How does the FAIR tax address government spending?
A: With taxes tied directly to the prices of goods and services within the United States, ALL Americans (not just certain groups) will understand how Federal taxes affect prices. This will make it extremely difficult for politicians to sell the American public on future and current irresponsible legislation.
Q: Could the FAIR tax wind up costing me more as a tax-payer?
A: Yes and no. If you currently pay no taxes, this system will force you to pay your ‘fair share’. However, if you are currently a tax paying citizen, this plan guarantees MORE tax PAYERS. As a result, your share of the tax burden should fall dramatically considering that, currently, almost 50% of the people in this country qualify to pay NO annual taxes to the Federal government.
Q: How does the FAIR tax address business?
A: Businesses are HUGE consumers, often buying goods and/or services in large quantities. Further, the product they produce for final sale to the consumer will already come with a higher price tag to the consumer. Therefore, it is imperative that government not be allowed to place multiple sales taxes on unfinished products sold in manufacturing, but only on the finished product so costs do not skyrocket.
Q: Has the FAIR tax ever been done before?
A: Yes. The States of Alaska, Florida, South Dakota, Nevada, Texas, Washington, and Wyoming all use State sales taxes in lieu of State income taxes.