Now, thanks to Obamacare, even accountants struggle to understand a code they are paid thousands of dollars per year to crack.
There’s really no way around it. At nearly 75,000 pages and growing every day, this country’s tax code is past the point of repair. The Fair Tax is the answer.
The Fair Tax will make our tax code flatter, fairer and simpler. It will spur innovation and remove some of the barriers to entrepreneurship in this country. Just as importantly, it will effectively eliminate the Internal Revenue Service. From politically-motivated auditing scandals to the billions in revenues it leaves uncollected each year, the IRS has proven that it does not deserve our trust.
The Fair Tax Act would impose a national consumption tax in lieu of the current income, employment and estate taxes. There are exemptions for investment and business purposes, but overall this dramatic simplification would invite businesses to focus on what really matters – their business and their employees.
Under the Fair Tax, Americans would receive a monthly sales tax rebate, known as the Family Consumption Allowance, based upon criteria related to family size and poverty guidelines. States would be responsible for collecting and remitting the sales tax to the Treasury.
Today, we spend roughly $168 billion and 6 billion hours each year complying with the tax code. But the impact goes even further than that. Small businesses make tax-related decisions throughout the year that impact nearly everything they do, from planning budgets to hiring new employees. And because so few truly understand the system, those with the means to do so can exploit loopholes in the tax code and take advantage of those playing by the rules.
A “fair” tax policy isn’t one that takes from the rich and gives to the poor. It is one that generates prosperity and lets everyone play by the same set of rules. If we seize the opportunity to bring bold, sweeping reforms to this nation’s tax code, our priorities will come into focus, the American economy will grow to its full potential, and everyone will benefit.
Congressman Sam Graves represents Missouri 6th Congressional District, which spans across 36 counties from the Missouri to Mississippi Rivers. Graves serves on the House Armed Services and Transportation and Infrastructure Committees, where he currently chairs the Subcommittee on Highways and Transit.