Other than the clarity the FairTax plan shines on the manipulation of tax rates, I cannot think of any good reason that every American is not chomping at the bit to implement the FairTax. Some sources estimate that the FairTax would provide more federal tax revenue than our current income tax system. This higher tax revenue could be applied to getting the US out of debt, keeping Social Security afloat for eons, and helping the folks at poverty level build a better future for themselves and their families.
Why would it generate higher tax revenues? Well, it's simple: EVERY American who buys new goods outside of their allotted "prebate" will be paying into federal coffers. This includes Americans who do business in the underground cash economy (currently not taxed because it's not reported). Additionally, foreign visitors to our country -- some of whom get a better exchange rate on their currency against the dollar -- will be paying that same tax when they purchase new goods. Think of all the foreign tourists who come into Louisville for the Kentucky Derby each year, those who visit when the Olympics are held here, those who tour our major cities -- they would be paying into the future of our country with each purchase. And, make no mistake about it: this is no Value-Added Tax (VAT) like they have in Europe where visitors can reclaim the VAT portion of their expenditure after they leave the country. This is a federal sales tax on new goods purchased in the United States. Period.
Just those two new sources of tax revenue alone more than make up for the loss of taxing the income of every American who abides by the law and accurately reports their income (from all sources). It's a win-win for Americans and our government regardless of political party.
John DeJong of NotMeUSA provides a better example and some very practical reasons for supporting the FairTax plan regardless of your party affiliation.
Why our Political Leaders Should Embrace the FairTax Plan
by John DeJong of NotMeUSA.comThe Fair Tax Plan (HR.25/S.25) has been out for well over a year now and yet there are still many people who have never even heard of it. One would think that a plan as bold and beneficial as this would be sounded from one coast to the next. Yet that is not the case. As a point of fact there are many liberal political leaders who continually ridicule the FairTax Plan whenever it is mentioned. They’re acting under the misguided belief that this wonderful plan favors the “rich.” That is the farthest from the truth as one can come.
The sad fact is that if any of these doomsayers would take the time to actually read the entire plan then they would quickly recognize it for what it is—the greatest social welfare program of all time. This belief FairTax proponents share is held because HR.25/S.25 will do more for the “lower income” wage earners in the U.S.A. than any other liberal program(s) in existence today.
You see, all consumers will receive an annualized rebate (in 12 equal monthly installments) on necessary living expenditures up to the poverty level. The size of the monthly rebate will be determined by the government’s published poverty level for a particular household size, multiplied by the tax rate. What this means is that for each person the monthly rebate will be increased in order to pay for the entire household costs for the basic necessities of life. This monthly rebate is given to all citizens regardless of age, sex, race, or income level.
This is how the Fair Tax would have worked in the year 2000. An individual would have received 100% of their pay check. That is if they earned $250 per week they would have taken home $250 per week. Plus, the individual would also receive a monthly check of $160 each month to help pay for their basic necessities of life.
That’s a tax-free income and another $40 a week for your own benefit. The best part of all is what the Fair Tax Plan will do for families. Back in the year 2000 a family of four would have received an additional $431 rebate per month for their livelihood. That payment will happen each and every month until the children become adults. When one considers all of the added values with the FairTax in buying used items like cars and homes tax free; there is no better way of helping others to live the American dream.
Is that not what we all want in these United States? Is it not the entire Democratic doctrine to bring equality among the masses? So then why do your democratic leaders refuse to back HR-25/S-25 and all that it will do for America? These are the questions that you must demand of all of your representatives to answer — Democrats and Republicans alike.
The above are just a few of many more questions to be asked and I will address them all in following articles. Until then you can download and read the entire 40-page FairTax Plan brochure at the FairTax Volunteer website. While you’re there
you will also find tons of stuff and highly important political information on how we can all persuade our representatives into enacting the FairTax Plan. Of course you can also join the revolution while you are there.
The FairTax Blogburst is jointly produced by Terry of The Right Track Blog and Jonathan of Publius Rendezvous. If you would like to host the weekly postings on your blog, please e-mail Terry. You will be added to our mailing list and blogroll.
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