What is FAIRTAX?

Fairtax is the theory and the proposed plan of the American Congress, which in its current incarnation would remove all taxes on the Internal Revenue Service (IRS). All Fairtax taxes, including social security, disabilities or Medicare tax, would be removed, which leaves the Americans a greater part of their earnings. In addition, FAIRTAX would deprive tax of capital profits, inheritance, business taxes and home taxes, at least at the federal level.

Instead of collecting taxes from these commonly taxed sources, a national turnover of 23% for most goods and services would be introduced. Every month, people would receive something tax relief from their expenditure, except for the level of poverty to reduce the tax burden on people with less money. In essence, they would get a tax discount that would allow them to maintain more money - FAIRTAX advocates call it "prebate" .ike social security or Medicare and tax plan supporters insist that FAIRTAX would reduce prices because companies might not pay tax taxesMU legal persons. The production costs would therefore be lower, which would theoretically result in lower consumer costs.

Expenditure would indicate the amount of tax you would pay within FAIRTAX. People who spend a lot of money would apparently pay more taxes than people who spend very little. This would be considered fair, because it is usually assumed that people with greater income will spend more money. This is not always the case, but it is so often. The government would also save money because it would not have to support the huge government structure of the IRS.

FAIRTAX would mean that most people would pay about 30% of the purchase, because the tax on the turnover of the state and cities is not remedied as planned. FAIRTAX would solve a significant problem in the US - failure to meet income tax forms or pay taxes. Illegal immigrants who work 'under the table' would not be exempt from the payment of the share NAnd taxes, because the tax would be based on purchases rather than income.

The basic supporters of the FAIRTAX movement are the Neal Boortz radio personality and the congressmen John Linder. Several impartial groups, including Americans for fair taxation (AFFT), also supported Fairtax. Many of them are now familiar with the theories proposed by Linder and Boortz through the book The Fairtax Book , which has been a number one book for some time on the best -selling lists of New York Times .

FAIRTAX Plan opponents claim that the monthly reporting needed to obtain tax discounts would be challenging. They predict that FAIRTAX would lead to an underground network of retailers and buyers who would buy and sell things without paying FAIRTAX. Many claim that the turnover state tax is difficult and that paying another 23% would be extremely difficult. Some feel that those who have the lowest income and education would have the greatest challenge to understand the new tax lawy and avoided unjust taxation.