I finished reading this interesting book recently. It’s interesting from the standpoint that it’s a whole new way to look at any tax system. The Fair Tax (if you haven’t heard of it) replaces our entire tax code and all the taxes it has, with a tax based on consumption.
It’s a sales tax essentially, only it applies to all people who buy anything in America. Be they a consumer, visitor, tourist or business. No more legal loopholes for businesses to avoid taxes with this tax system.
They have a website called FairTax.org. It’s an interesting idea and a new, fresh way to look at an old problem, how to tax people fairly.
Here’s a quote from their site:
What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax — administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
If you’re frustrated with our hidden tax scheme and interested in a new option pick up this book or check out their site. Imagine a world where there was no tax bill except the one you paid when you bought something. And you knew exactly what your tax bill was from each dollar you spent, and you could hold politicians accountable for what you paid, because it was right there in front of you each and every day. Imagine a world like that.