Tuesday, July 11, 2006
Fair Tax Brings Business Back Home
In the face of fierce competition from emerging markets, how do you protect the US economy? How do you go beyond stemming the tide, and actually reversing the flow of jobs out of the US? A good amount of our problems can not only be improved, but can actually be solved by revamping, drastically, our current tax system.
The current tax system is incomprehensible. It is beyond reform. It simply has to go. The Fair Tax Act, a nonpartisan bill, removes the burden of the income tax and other federal income-based taxes. The Fair Tax Act replaces the current tax system with a national consumption tax that: Allows Americans to keep 100 percent of their paychecks, pensions, and Social Security payments. Provides a prepaid, monthly rebate for every registered household. Allows families to save more for home ownership, education, and retirement. Raises the same amount of money for the federal government. Makes American products more competitive overseas.
Think about it: no tax out of your paycheck (raise your income by as much as 50%), no corporate tax (so not every decision has to include a discussion on tax consequences), no IRS (money that goes right back into the economy), no burden of filing taxes (personal or corporate), and the shadow economy pays taxes like everyone else (yes, drug dealers to tax cheats, everyone pays). And all of this with the government taking in exactly what it takes in today, if not more.
Although the plan is simple, I won't try to articulate it here as it is somewhat off topic. But I encourage you to look at the basics at the following site: http://www.fairtaxvolunteer.org/smart/sketch.html
And yes, it really is that simple.