http://www.grassfire.org/84/petition.asp?PID=11550548&NID=1


www.fairtax.org

The FairTax was created by first asking the American people what they wanted out of a tax system, and then having a team of respected economists design a tax system that met those demands. The FairTax replaces the income tax and all other federal taxes with a national consumption tax. The FairTax is levied only once, at the point of purchase on new goods and services. The simplicity of the FairTax frees Americans from our current overwhelming tax code and unshackles the U.S. economy.


The FairTax:
Abolishes the IRS
Closes all tax loopholes and brings fairness to taxation
Maintains our current Social Security and Medicare benefits
Brings transparency and accountability to tax policy
Allows American products to compete fairly
Reimburses the tax on purchases of basic necessities
Enables retirees to keep their entire pension
Enables workers to keep their entire paycheck

The 23% tax rate seems too high. I just did my taxes, and after all of my deductions and exemptions, I only paid 14% of my income in taxes. Why is the FairTax a good deal for me?

A: We get this question all of the time…and it is a good one. Sadly, it is also proof of the problem with our tax code today. The problem is that you believe that you are only paying 14% in taxes…and you have forgotten about the payroll taxes that you pay and the corporate income taxes built into the price of everything that you buy.

Remember, the FairTax is revenue neutral, which means that it is not a tax cut. The FairTax expects that as Americans we will pay just as much in taxes tomorrow as we do today. The only differences will be that (a) we’ll know how much we are paying because it will be visible and (b) we’ll free the economy from the constraints of the income tax so that a rising economic tide can lift all boats.

Let’s imagine that you earn $100,000 (the round number, while high, will make the math easier)…and imagine that after all of your deductions, exemptions and credits, your income tax bill was $14,000, or 14% of your total income. Now, remember that you also must pay 7.65% for payroll taxes, which is another $7,650. Also, remember that your employer must pay another 7.65% of your salary in payroll taxes (or, if you’re self-employed, you must pay this amount directly). That is another $7,650. Adding these amounts together, you will have paid $15,300 in payroll taxes.

Suddenly, even though you thought that you were only paying $14,000, or 14%, we now see that you’re paying $29,300, or 29%, and we haven’t even calculated the hidden taxes in the price of everything that you buy.

This is why the FairTax is a better deal for you. Today, taxes are hidden so you don’t really know how much you’re paying. Plus, today, for every dollar handed out to someone in a special tax break, tax credit, or tax exemption, the tax bill of everyone else must rise by that dollar. The FairTax will eliminate all of these special preferences, and when those who today receive those preferences start to pay more, you can begin to pay less.


www.linder.fairtax.house.gov