The fair tax plan is a 2003 proposal to replace the income tax with a 23% sales tax. Evaluate its pros and cons and decide if this is a plan you would be comfortable to support. In the face of the outlandish american tax burden, talkradio firebrand neal boortz and congressman john linder are leading the charge to phase out our current, unfair system and enact the fairtax plan, replacing the federal income tax and withholding system with a simple 23 percent retail sales tax on new goods and services. Both eliminate the complicated current income tax structure. I submit that a national sales tax like most of the states already have should totally replace the income tax. The internal revenue service irs has six federal income tax brackets ranging from 10 to 35 percent. What is the fair tax act explained pros and cons money crashers. But there is a lot of information crammed in there. A secure, cashfree way to shop the fair with yearround shopping online. Simply put, this plan would replace the federal income tax system with a flat national sales tax.
However, while the idea behind this tax is simple, it would result in anything but a fair and. Joe biden is currently not clearly pro or con on work requirements but advocated for such requirements in the 1980s and 1990s. A flat tax is an income tax system that applies the same low, income tax rate to everyone. Currently, our tax system is based on tax brackets. Fairtax was a flat tax proposal in 2005, 2008 and 2009 in the united states that includes complete dismantling of the internal revenue service. The fair tax book explains this revolutionary plan in plain english and does something even more amazing. It further complicates book to tax reconciliations by allowing taxable entities. Fairtax was a flat tax proposal in 2005, 2008 and 2009 in the united states that includes. Oregon to empty death row 51820 on friday, may 15, 2020, oregon corrections director colette peters announced the states death row will be closed in summer 2020 and the 27 death row inmates will be moved to the general prison population or other prison housing 2020 candidates on welfare work requirements 51820 president trump believes people should be required to work to receive. Fairtax book was written to spread the message of a national retail sales tax on new goods and services as a replacement for individual and corporate income taxes including the alternative minimum tax, estate taxes, and social security and medicare taxes. It is our passion to provide you the best products at the best prices. As boortz and linder reveal in this first book on the fair tax, this radical but eminently sensible plan would end the annual national nightmare of filing income tax returns, while at the same time enlarging the federal tax base by collecting sales tax from every retail consumer in the country. Americans for fair taxation claims that it uses the taxinclusive number to make it easier to compare the fairtax to the income tax that it will replace since most of us think of income tax rates. The fair tax book saying goodbye to the income tax and the irs.
It would hurt the middleclass, seniors, and the poor the most. Does lowering the corporate income tax rate create jobs. The despised federal income tax system needs to be shut down and america finally has a plan to do the fairtax book. Frank chodorov, one of americas past champions of liberty, once observed that, by enacting the income tax, the american government was. The plan replaces them with a federal retail sales tax of 23% to be administered by state sales tax authorities. The fair tax plan may be advantageous in the following ways. The fair tax is an excellent idea, but only under three conditions. Facebook tops the list of social media news sources about covid19 51420 facebook was the primary social media platform source for coronavirus news 35. The fairtaxsm is designed to collect the same amount of revenue as the current tax system. The fair tax book is important stuff in spite of that putz, coauthor neil boortz. Supporters of progressive taxation favor placing the major tax burden on rich people, since the rich are not as likely to. Just because income tax is an amendment doesnt mean we are forced to use it. It abolishes all federal personal and corporate income taxes, and ends all taxes on gifts, estates, capital gains, alternative minimums, social security, medicare, and selfemployment. The best books and stories brought to life with unforgettable characters.
Additionally, entire books and white papers have been written about each of these kinds of tax. Book, which is their own work written with our grateful knowledge, has. The bill now has 21 cosponsors more than any other fundamental tax reform legislation in the house and they represent a bipartisan coalition of members from. Of course if you are in search of a socialist utopia, the fair tax is not what you seek.
Use features like bookmarks, note taking and highlighting while reading the fair tax book. Indeed, we have flat tax advocates and sales tax advocates on our board of directors, and our research was cited in both steve forbes book on the flat tax and neil boortzs book on the fairtax. In fact, we hope you start to wonder how you went through tax season without them. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate. They are pushing for a flat tax, meaning that one fair tax is charged for retail goods, and all other taxes would be eliminated. Compared to the more than tens of thousands of pages of the u.
Like our current income tax plan was designed by politicians. Linder, momentum means his fair tax act has gained the support of several other lawmakers now including powerful house majority leader tom delay rtexas, 22nd. The push to scrap income taxes and the irs is gaining fans. The authors estimate that because of these factors, the con. It will definitely fail in karl marxs goals of punishing achievement and discouraging personal savings. A 501c3 nonprofit nonpartisan public charity, procon. Panel on federal tax reform, simple, fair, and progrowth. The fairtax rate after necessities is 23% compared to combining the 15% income tax bracket with the 7. Some of its advantages and disadvantages are listed below. John linder published the fairtax book in 2005 and additional visibility was gained in the 2008 presidential campaign. Faire offers business owners a toolkit of simple tech, data insights, financial terms, and logistics solutions to support the future of local retail. Under the fair tax plan, only the amount of income you spend gets taxed.
Earn cash for the school or get double the profit with scholastic dollars. The fairtax is a simple, fair and transparent solution to replace our current federal tax system. The fairtax book is a nonfiction book by libertarian radio talk show host neal boortz and congressman john linder, published on august 2, 2005, as a tool to increase public support and understanding for the fairtax plan. Instead of having progressive taxes on the amount of money that is being earned, a national sales tax would charge the same amount nationally to everyone for the goods and services that qualify. I first heard about the fairtax several years ago, and every so often i spend some time perusing their website for information. The more tax on the rich comes by what the cost is for their purchase.
With the progressive system, they have to pay different tax. Fair tax is a push to reform the federal tax codes, that are very over complicated and bias towards many groups of people. From an economic perspective, there are many similarities between the fairtax and a flat tax. Whereas the flat tax would tax all income at the same percentage, the fairtax wouldnt tax income at all it would instead institute a national sales tax. We also take the 50% book profit as well i am not sure but have been asked the question. Saying goodbye to the income tax and the irs neal boortz on. Our socalled progressive tax system punishes the most productive members of society with a higher tax rate. The fair tax calls for abolishing all federal taxes and replacing them with a 23 percent nationwide sales tax that applies only to new goods and services. In fact, its the bottom third of the economy who benefit the most from the fair tax, and the people at the top. The book was published as a companion to the fair tax act of 2005, which was a bill in the 109th united states congress for changing tax laws to replace the internal revenue service irs and all federal income taxes including amt, payroll taxes including social security and medicare taxes, corporate taxes, capital gains taxes, gift taxes, and estate taxes with a national retail sales tax. The fair tax book keeping with yesterdays theme of watching president barack obama as he considers raising taxes on the middle class, i thought today would be the perfect time to talk about a book that i recently completed. List of 9 main pros and cons of the flat tax connectus. Most of these consumption taxes, like a retail sales tax or value added tax or the flat tax, or whatever, talk about cleaning out the tax system, all the. I advocate removing all income taxes, all capitalgains taxes, and replacing them with a consumption tax, kind of a national sales tax called the fairtax.
Our publications provide fast answers to tax questions for tax practitioners. We also need to get rid of payroll taxes some think the fairtax is regressive, but in fact its progressive taxing the wealthy more than the poor. The fairtax book is a nonfiction book by libertarian radio talk show host neal boortz and congressman john linder, published on august 2, 2005, as a tool to. Our family owned and operated company is dedicated to your satisfaction. Americans for fair taxation afft was founded in 1995, by three houston entrepreneurs. Of course, you need to understand the pros and cons of the fair tax act. The fair tax plan is a sales tax proposal to replace the current u. The pros and cons of a consumption tax brookings institution. Obviously, the book captivated the american public with its simple and irresistible premise. This summary of the ideas from neal boortz and john linders book the fairtax book provides a proposal for a new way of raising revenue in the us with fairtax. Proponents believe this initiative would eliminate loopholes, evenly. I like the idea of a simple, fair and evenly applied tax. Penalizes the middle and lower classes the fair tax plan is a progressive tax where the rich pay more and the poor and middle class pay less, but this is only true if an individual spends 100% of his earnings on taxable expenses.
In their book, the authors explain the concept of fairtax, how it differs from the current tax regime and how it could bring huge benefits by transforming the bureaucracy of the irs. Saying goodbye to the income tax and the irs kindle edition by boortz, neal, linder, john. Download it once and read it on your kindle device, pc, phones or tablets. It is a nonpartisan 501c4 grassroots organization solely. The fairtax book saying goodbye to the income tax and the irs. Other countries with a flat rate tax system include. The proposal would replace all federal income taxes including the alternative minimum tax, corporate income taxes, and capital gains taxes, payroll taxes including social security and medicare taxes, gift taxes, and estate taxes with a single. Republican presidential candidate steve forbes makes his flat tax proposal.
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