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"Where there is an income tax, the just man will pay more
and the unjust less on the same amount of income." - Plato
Feature: The FairTax - The best vs the rest
Our horrific tax code has
taken center stage as the nation looks toward the next Presidential election.
As candidates assemble and tweak their tax proposals, the FairTax
remains the most simple, fair and transparent of any reform plan being
discussed today.
The nonpartisan FairTax legislation is by
far, the most transformative tax reform possible for our citizens, American
businesses and our struggling economy - and is ready to be implemented
immediately.
Almost any tax reform plan,
as proposed, would have advantages over our current incomprehensible system of
federal taxation. However, the FairTax legislation is the most exhaustively
researched tax plan, has broad support among the American people and is before
Congress right now.
There are a lot of
different tax proposals and below are some of their core features. Here's how
they compare to the FairTax legislation.
Flattening income tax rates
Rates of 9% 15%, 20% and
have been proposed, underscoring the need to take loopholes and special
interests out of our tax code. But, some plans even keep some write-offs
for popular or political reasons.
The FairTax income tax rate
is 0%! No federal withholding from your paycheck and the IRS is disbanded as
states collect the FairTax.
A true flat income tax - without Congressional modification -
would probably be better than the corrupted system we're burdened with today.
But economists still support consumption taxes over income taxes for a host of
economic reasons. See a detailed comparison with the FairTax here.
Lowering corporate tax
rates
When you tax an American
business and not foreign competition,
jobs leave the country. Plans for a reduced 9% 12.5%, 20% or 25% rate give some
hope for the return of the Made in America label but American consumers end up
funding the hidden cost of corporate taxes. And unlike the FairTax 0% rate,
politicians happily tax you - through them.
Reducing or eliminating
payroll taxes
As part of an economic stimulus,
this year we have a 2% reduction in payroll taxes. Some candidates want to
eventually phase these out completely, while others plan immediately. The FairTax
also lets Americans keep this part of their paycheck.
All of the candidate's tax
proposals have something else in common: They're all ideas in
various levels of development and put forward by a candidate who can't control
their plan's 'tweaking' by a divided Congress. The FairTax on the other hand, was not
proposed by a polarizing politician but created by economists and is a 'pure' bill in Congress.
The FairTax is also
bi-partisan legislation with a nationwide grassroots network dedicated
to pushing Congress to support it. This has led to the most co-sponsors in the
House and Senate of any tax reform proposal. It’s a huge advantage that
decreases the historical Washington practice of giving away tax favors in the
tax code and resisting simplification efforts.
The FairTax combines the
best features of all the tax proposals and makes them even better. A vast amount of supporting research explains why 80 economists have also endorsed the FairTax.
We're grateful for the
thousands of FairTax activists who are promoting true, transformational tax reform.
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