FairTax would replace federal tax system with simple alternative

Story dated 08 January 2005

The FairTax is the best tax proposal I have ever seen. It is absolutely fair in that everyone pays the same amount in tax relative to what they buy. And people are only taxed on what they buy under this tax -- to the tune of 23%. This 23% is not as much as you would think since only finished retail products are taxed. The lack of hidden taxes at every stage of production would greatly reduce the raw price of goods that you buy; experts project that, even with the 23%, the actual retail price of most goods would be less than you pay under our current tax scheme. Among the more apparent benefits of this tax is that the IRS and the unnecessarily complicated tax code are eliminated. Another benefit is that this tax scheme would turn the United States into the largest tax shelter in the world. The last election saw candidates complaining about companies fleeing to other countries to avoid the U.S. tax code. If the tax code were gone, and these companies didn't need to pay taxes on anything but finished products that they purchased, more companies would likely come into the United States than have left in the past twenty years. If you think this is a good idea, you ought to write your Senators or Representative and ask them to support the Senate FairTax Bill -- S. 1493 [now S. 25], and House FairTax Bill -- H.R. 25, respectively.

posted by The Sovereign Editor | 2:54 PM

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