Community Forum: FairTax – the name says it all (June 27, 2008)
By Jeff Cole
Kennebunk resident
Imagine for a moment that it’s the year 2010. Ten year’s ago, in 2000, the United States Congress with a newly elected president, was really serious, for once, about comprehensive tax reform, and enacted an innovative initiative called the “FairTax”
The FairTax abolished the IRS, did away with all payroll withholding taxes, self-employment, Social Security and Medicare taxes, capital gains, alternative minimum, estate, corporate and individual income taxes. Through companion legislation, the 16th Amendment that imposed an income tax was repealed. As predicted by the scores of economic studies and experts that vetted the FairTax, goods and services experienced a cost reduction of 22 percent (The analysis of this assertion is contained in “The FairTax Book” by Neal Boortz and Congressman John Linder). A new federal consumption tax of a like amount, an inclusive tax of 23 percent, was established. Now don’t get excited, the $100 toaster didn’t become $123. The toaster that cost $100 in 1999, still cost $100 in 2000, except that now, $23 of the price went to the federal treasury. Every good and service was subject to the inclusive FairTax. Social spending programs near and dear to career politicians weren’t impacted whatsoever as the political opponents of the FairTax had tried so fervently to frighten the American public to believe. In fact, Social Security was restored to solvency within the first decade of the FairTax’s adoption; an impossible feat had the status quo of nipping around the fringes of the tax code continued.
Personal incomes, savings and investment began to soar as folks now had much more of their hard earned wages to take home. A monthly “prebate” payment was disbursed by the federal Treasury for the tax included now in the cost of life’s basic necessities to every household with valid Social Security holders.
America became the world’s new tax haven. Half of the $12 trillion in wealth that had gone offshore to escape an onerous tax system, returned within months of the FairTax’s enactment, as Alan Greenspan, head of our country’s monetary policy-making body, predicted. America’s once heralded manufacturing base returned as well, churning out goods for the global economy more competitively than ever due to the FairTax. Domestic auto manufacturing saw resurgence. Our trade deficit with the rest of the world was reversed. Employment grew to keep pace with the increased economic climate and legal immigrants were welcomed to fill these new jobs.
The 50 million visitors to the U.S. annually contributed to the FairTax plan with every purchase made. The intrusiveness of the IRS was gone and the $400 billion spent annually to comply with a lopsided tax code was now being plowed back into economic development. The value of the dollar strengthened, America’s economy exploded and life was good. Well, for most of us that is.
Special interest lobbyists no longer had careers in seeing that their favorite elected officials passed tax laws that benefited the few. Special tax subsidies through tax credits became a thing of the past – no income taxes, no need for tax credits or deductions. Special interest influence, long a political football of both parties, was significantly curtailed. Business models succeeded and prospered because they made economic sense in the marketplace rather than being propped up by a tax subsidy.
Business decisions were no longer encumbered by complex tax considerations but went forward on their soundness, as they should. Taxation was much more transparent under the FairTax.
If politicians wanted to raise the FairTax rate, everyone would easily understand its consequence; it couldn’t be buried in a payroll withholding tax.
No longer was economic class warfare a tool of politicians. Everyone paid the same tax rate and families of the same size received the same monthly prebate, regardless of income levels. The less one spent, the less tax they paid. Lower and middle-income wage earners experienced unprecedented prosperity and financial freedom. America was once again the economic engine of the world.
It’s not 2010 and the FairTax wasn’t passed in 2000. But it’s far from a fairy tale; it’s pending legislation in the House and Senate today. And it’s gaining momentum each and every month.
“The FairTax Book” and its new sequel are increasing circulation monthly as is the Americans for Fair Taxation Web site www.fairtax.org. The refrain, “It will never pass,” is falling on more deaf ears. Americans have never refused to confront a challenge and this is no different, it can be done. But it will require your involvement and awareness. Read the book, visit the Web site, become educated, talk to your friends. Make certain your elected officials have a thorough understanding of the FairTax – most do not. America is at an economic crossroads and the future of our children and grandchildren is very much at stake.
You need to know about the FairTax and I hope this has made you curious.
Kennebunk resident
Imagine for a moment that it’s the year 2010. Ten year’s ago, in 2000, the United States Congress with a newly elected president, was really serious, for once, about comprehensive tax reform, and enacted an innovative initiative called the “FairTax”
The FairTax abolished the IRS, did away with all payroll withholding taxes, self-employment, Social Security and Medicare taxes, capital gains, alternative minimum, estate, corporate and individual income taxes. Through companion legislation, the 16th Amendment that imposed an income tax was repealed. As predicted by the scores of economic studies and experts that vetted the FairTax, goods and services experienced a cost reduction of 22 percent (The analysis of this assertion is contained in “The FairTax Book” by Neal Boortz and Congressman John Linder). A new federal consumption tax of a like amount, an inclusive tax of 23 percent, was established. Now don’t get excited, the $100 toaster didn’t become $123. The toaster that cost $100 in 1999, still cost $100 in 2000, except that now, $23 of the price went to the federal treasury. Every good and service was subject to the inclusive FairTax. Social spending programs near and dear to career politicians weren’t impacted whatsoever as the political opponents of the FairTax had tried so fervently to frighten the American public to believe. In fact, Social Security was restored to solvency within the first decade of the FairTax’s adoption; an impossible feat had the status quo of nipping around the fringes of the tax code continued.
Personal incomes, savings and investment began to soar as folks now had much more of their hard earned wages to take home. A monthly “prebate” payment was disbursed by the federal Treasury for the tax included now in the cost of life’s basic necessities to every household with valid Social Security holders.
America became the world’s new tax haven. Half of the $12 trillion in wealth that had gone offshore to escape an onerous tax system, returned within months of the FairTax’s enactment, as Alan Greenspan, head of our country’s monetary policy-making body, predicted. America’s once heralded manufacturing base returned as well, churning out goods for the global economy more competitively than ever due to the FairTax. Domestic auto manufacturing saw resurgence. Our trade deficit with the rest of the world was reversed. Employment grew to keep pace with the increased economic climate and legal immigrants were welcomed to fill these new jobs.
The 50 million visitors to the U.S. annually contributed to the FairTax plan with every purchase made. The intrusiveness of the IRS was gone and the $400 billion spent annually to comply with a lopsided tax code was now being plowed back into economic development. The value of the dollar strengthened, America’s economy exploded and life was good. Well, for most of us that is.
Special interest lobbyists no longer had careers in seeing that their favorite elected officials passed tax laws that benefited the few. Special tax subsidies through tax credits became a thing of the past – no income taxes, no need for tax credits or deductions. Special interest influence, long a political football of both parties, was significantly curtailed. Business models succeeded and prospered because they made economic sense in the marketplace rather than being propped up by a tax subsidy.
Business decisions were no longer encumbered by complex tax considerations but went forward on their soundness, as they should. Taxation was much more transparent under the FairTax.
If politicians wanted to raise the FairTax rate, everyone would easily understand its consequence; it couldn’t be buried in a payroll withholding tax.
No longer was economic class warfare a tool of politicians. Everyone paid the same tax rate and families of the same size received the same monthly prebate, regardless of income levels. The less one spent, the less tax they paid. Lower and middle-income wage earners experienced unprecedented prosperity and financial freedom. America was once again the economic engine of the world.
It’s not 2010 and the FairTax wasn’t passed in 2000. But it’s far from a fairy tale; it’s pending legislation in the House and Senate today. And it’s gaining momentum each and every month.
“The FairTax Book” and its new sequel are increasing circulation monthly as is the Americans for Fair Taxation Web site www.fairtax.org. The refrain, “It will never pass,” is falling on more deaf ears. Americans have never refused to confront a challenge and this is no different, it can be done. But it will require your involvement and awareness. Read the book, visit the Web site, become educated, talk to your friends. Make certain your elected officials have a thorough understanding of the FairTax – most do not. America is at an economic crossroads and the future of our children and grandchildren is very much at stake.
You need to know about the FairTax and I hope this has made you curious.
A brief explanation, and I hope many people read it. I hope I live long enough to see the implementation of the Fair Tax. This will be the time the taxpayer will control how much tax he will pay. This way of paying taxes is so simple, and we get rid of that infernal 60,000 page monster, The income tax; THE UNFAIR TAX!
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Supporting the FairTax is the acid test for basic intelligence. Insist on this from any future candidate. No excuse should be accepted.
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