FairTax system eliminates income tax

Press of Atlantic City

After 100 years, it is time to end the income tax. Instead of endless reforms, abuses, and scandals, the incomprehensible tax code needs to be eliminated. There are 68 co-sponsors in the House and 7 in the Senate of legislation to do that, the FairTax bill.

The FairTax eliminates the entire federal income tax code. No more income, business, corporate, gift, inheritance, interest, dividend, and capital gains taxes. No more record keeping and reporting of income. Make as much money as you can and report not a dime of it to the federal government. All taxes on income are replaced with one national retail sales tax on new goods and services. There is no tax on used goods. Business-to-business transactions are not taxed. Instead of hundreds of millions of filers and hundreds of forms, only tens of millions of businesses file a one page report each month with one question - how much did you sell retail?

The FairTax rate is 23 percent. It is designed to be revenue-neutral. But only those spending a lot will pay the full rate, because of the "prebate."

The prebate is a rebate in advance on basic necessities, up to the poverty level. The prebate makes the FairTax progressive by untaxing poverty-level spending.

The current tax code discourages saving and encourages debt. The FairTax encourages saving by only taxing consumption. Manufacturing would return to the United States because capital will be treated better here. The U.S. will become the world's largest tax haven.

Learn more at www.fairtax.org and come help make April15 just another spring day.

James Milroy

This article is published here.

 

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