Runyan should focus on FairTax reform

PhillyBurbs.com

Instead of advocating for “renewable energy in tax reform," U.S. Rep. Jon Runyan should focus on real tax reform: the FairTax Act of 2013 (HR 25).

Runyan, a Mount Laurel Republican representing the 3rd District, says he is concerned with the effect that the implementation of the FairTax, a national sales tax that eliminates all federal taxes on income and investment, would have on our economy.

Let’s picture the following with the FairTax — no income or payroll taxes withheld from your paycheck, pension or Social Security benefit; no threat of a federal Internal Revenue Service audit; the IRS will not know how much you earn or where you are employed; no FairTax on the purchases of a home bought on resale or a used automobile; and a rebate in advance to cover sales taxes paid at the retail counter. You will have more money to save, and you will determine how much tax you pay by your spending habits.

The congressman’s concern, that our not paying the sales tax on the purchase of a used automobile having a detrimental effect on the new-car business, is unfounded. Upon implementation of the FairTax, new-car dealers and all businesses will receive a 23 percent credit on their inventory.

A new-car dealer with an inventory of $1 million worth of new cars would receive a credit of $230,000 on sales taxes collected that could be used to adjust the price of a new car to compare more favorably to a pre-owned automobile.

My concern is that Runyan is satisfied with the broken federal income tax system.

John O’Rourke

This article is published here.

 

All active news articles