FairTax volunteers believe the FairTax could fix many problems. The current hot topic with our tax law appears to be inversions. This is when a U. S. firm buys a foreign company and moves its headquarters abroad to avoid our 39.1 percent corporate tax. The Tax Foundation reported that we rank 34th in international tax competitiveness. Estonia is first with a 21 percent corporate rate.
The FairTax would give us a zero corporate tax rate. All other nations would likely experience inversions at a blinding rate while thousands of businesses move here.
Another problem we have is a low growth economy with a labor participation rate of 62.7 percent according to data.bls.gov. It is the lowest in 36 years. The Daily Mail stated that we have 92 million people out of work. If we want the economy to grow we need workers to buy more items. The FairTax allows workers to take home their gross pay minus state income taxes and it provides a monthly prebate. More take home pay means more consumer activity.
The Bureau of Labor Statistics said that in 2013 we had 145 million workers and now we have 92 million out of work. The unemployment rate is 5.9 percent. This number is making politicians look really good. It resembles Common Core math. Ninety-two divided by 145 is 63 percent, not 5.9, but then I don’t need to protect any politicians. Black Press USA found that the unemployment rate for blacks was 11 percent and 20 percent for black teenagers.
If you want companies moving here, building plants, and stores, and you want people buying products to grow our economy you might consider the FairTax. The FairTax eliminates federal income tax forms and takes the stress out of April 15. Only retailers would fill out tax forms.
“Unfair: Exposing The IRS,” a new documentary hitting theaters for just one night on Tuesday, October 14, explores the rampant abuses of the Internal Revenue Service.
The 1:20 film details the well-known story of the IRS targeting of conservative groups, but there are more abuses exposed. “Unfair” highlights a relatively unknown problem experienced by parents who adopt children from outside of the country, harassment of groups like the American Legion, and certain religious organizations.
In addition to pointing out the overreaching actions of the agency, the film also hopes to jump-start a movement to abolish the bloated agency and replace it with a “fair tax.”
On Friday’s edition of “The Morning Blaze” on TheBlaze Radio, the film’s narrator and producer, Craig Bergman spoke with Mike Opelka about the film, the variety of IRS abuses and explained the difference between a fair tax and a flat tax…
Consider this: visualize getting your whole paycheck (no federal income tax or FICA deductions) on every payday. Then, you decide how much federal tax you pay by what you choose to buy. FairTax does this for everyone. FairTax replaces – and is simpler and fairer than – the IRS’s 77,000-page federal income tax code. FairTax eliminates the IRS.
Now, let’s look at what taxes go away: The FairTax proposal in Congress now, HR25, replaces: 1. federal income, 2. payroll, 3. personal, 4. gift, 5. estate, 6. capital gains, 7. alternative minimum, 8. Social Security/Medicare, 9. self-employment and 10. corporate taxes. Yes, FairTax eliminates these and the IRS.
Big advantage: American workers take home their whole paychecks. Not only will more of us have jobs, but we will also take home 100 percent of our paychecks (less state income tax). No federal income or payroll taxes are withheld from paychecks, from pensions, from investment income or from Social Security checks.
Next time we’ll discuss: How the pre-bate completely un-taxes the poor’s (and everyone’s) spending up to the poverty level.
See for yourself: Answers to frequently asked questions, link here: http://fairtax.org.
– Edd Wigginton
For several years now I, along with many other concerned citizens, have been encouraging our government to do away with the IRS. Our letters to congressmen, senators and presidents seem to have been ignored, while special interest lobbies have prevailed. To accommodate these special interests, changes are made to the IRS code every year; so much so, in fact, that most accountants can’t even keep up with the changes. I personally have hired CPAs who have made glaring mistakes that have cost me money (both in taxes and CPA fees).
We all know that it takes money to run the government and I have paid my share for over 60 years. I’ve saved receipts, hired accountants, purchased computer programs, and gone through audits. And through all of this I’ve wondered whether everyone else is paying their fair share. Is it possible that my neighbor’s tax attorney has found more loopholes in the code than mine? How about the companies that take their businesses overseas to avoid our tax system, such as Enron, who at one time had over 800 subsidiary companies in the Cayman Islands?
If there was no alternative to the present system we’d be stuck with what we have. But there is an alternative. It’s called the Fair Tax and it’s been introduced for passage several times in Congress. Up to now, special interest groups have successfully lobbied to keep it from passing. Can you imagine how the accountants, attorneys and IRS employees would be affected if we could pass something that’s simple and fair? We wouldn’t need them! There would be no tax returns to file every year, so no audits to worry about. And I’ve not even mentioned what it costs to run the over-bloated, inefficient system that we call the IRS. So far we have not been able to replace our tax system, but considering all the scandals and corruption going on in the IRS today, perhaps now we might have a chance to throw them all out. Another thought would be to just tell them that all your information has been lost and your hard drive crashed just before tax time. And it’s not recoverable! Good luck with that.
I would rather encourage everyone to contact their legislators and suggest that they support the Fair Tax. I’ve been doing this for several years and I’m not going to stop now. I think we owe it to our kids and grandkids to change what had been proven to be a burdensome and unfair taxation system. Information can be found regarding the Fair Tax proposal at www.fairtax.org.
This article is published in full, here.
The Sept. 14 Other Voices piece “Inversion is really the American way,” is spot-on in some aspects of our failing tax system. Tax inversions are products of lawful tax alternatives, paid for by companies through lobbyists, under our current tax code.
The tax rate of 3 percent on U.S. corporate income, plus 12 percent on any foreign income returned to the U.S., has resulted in a slow destruction of our economy.
As they preach tax reform and simplification, Congress sells exemptions, deductions and exclusions in 74,600 pages of code and regulation.
The real solution is right in front of us — repeal the ineffective IRS tax code and replace it with a consumption tax like the Fair Tax.
A key feature of a consumption tax provides a business-friendly tax structure that eliminates corporate income taxes, payroll taxes and investment taxes. As a result, corporations are incentivized to return offshore capital and bring their headquarters back to the U.S.
It’s time for Congress and the president to stop talking about fixing inversions, and allow the Fair Tax to actually do it. As an aside, the Fair Tax eliminates funding for and phases out the IRS.
On Oct. 14, a documentary revealing the violations of the IRS of personal liberties will be showing at 7 p.m. in Ocala, Gainesville and in more than 677 other theaters. “UnFair” exposes IRS abuses and is followed by a “town hall” forum on solutions headed up by Mike Huckabee.
This article is published in full, here.
Augusta Free Press
…If we stop taxing BK and instead tax the customer, we arrive at the same result. But why should we change? Because taxing BK taxes productivity, and taxing the customer taxes consumption – but the customer will have the same purchasing power. We stop taxing the customer’s income too. If we change, Tim Hortons will re-domicile in the US rather than BK re-domicile to Canada.
Will the plan work? Peer-reviewed academic and market research says yes. Is there a proposal in Congress today to change our tax code to keep BK in the US? Indeed there is. The Fair Tax Act of 2013, with 87 sponsors, replaces Subtitles A, B and C of the Internal Revenue Code with a national tax on all services and all new tangible goods sold at retail to a consumer in the United States.
The FairTax®, as the bill is known, also phases out the IRS over a three-year period and requires the destruction of its records of “ABC” taxes, except those records needed to calculate Social Security Benefits and to support ongoing litigation. A Family Consumption Allowance assures that lawful residents of the United States, regardless of income, pay no tax on essential consumption up to the poverty level. To learn more, go to www.fairtax.org.
– Jim Bennett
This article is published in full, here.