Fair Tax - Fairtax Act - Consumption Tax - Its time is now!!

Today is April 15 and millions of people are struggling to interpret the income tax code and file their tax returns. It doesn’t have to be that way.

As I have talked about before on this blog, there is an alternative being considered by Congress. It is the Fair Tax Act. (S 25 and HR 25).

The Late Senator Daniel Patrick Moynihan once said that the FairTax was one of the most thoroughly researched bills to ever come before Congress.

The Fair Tax is a national consumption based flat tax on new products sold to end-consumers. Business to business transactions are not taxed, therefore eliminating the “embedded taxes” currently included in the price of everything you buy. Compliance costs ($250 billion per year) will be reduced by 90%. Social Security will also be funded through the Fair Tax. Therefore you will take home your whole paycheck (ignoring State taxes).

Eliminating the embedded taxes and compliance costs instantly makes products 20% to 30% less expensive and thus more competitive on the world market.

The Fair Tax is revenue neutral.
The Fair Tax abolishes the IRS and the Internal Revenue Code.
The Fair Tax un-taxes all expenditures under the poverty level through the use of a “pre-bate”.
The Fair Tax abolishes all income based taxes (capital gains, inheritance, interest and dividends, etc.)

Alan Greenspan recently supported the idea of a national consumption tax. Additionally, a group of disinterested economists (those that don’t have any dog in the hunt) has recently endorsed the Fair Tax as the best alternative to the current system.

Here is a comparison of the Fair Tax to the current tax system and to a flat income tax system.

Here is a FAQ for the Fair Tax.

We can make it happen, call or write your congressman or senator today and ask them to support the FairTax (Senate Bill 25 House Bill 25)

Update: Here is an excellent article on the FairTax at The Rant.