Would FairTax tax Education?

Investments and savings will not be taxed under the FairTax system. Since education is clearly an investment in a person’s future, it will not be a taxable item under the FairTax.

If you didn’t have to pay taxes on your money when you earned it, and you didn’t have to pay taxes on money invested in education, how inclined would you be to finally finish that degree or how much more determined would you be to see that your child gets a quality education?

Would FairTax tax services?

One point of confusion on the FairTax is that it will tax services that are not currently taxed. The truth is that consumers are already paying taxes when they pay for services. The income and payroll taxes that businesses are required to pay are included in the fees they charge for their services. The difference under the FairTax will be that the consumer will know exactly how much of the fee they pay is going to pay taxes and how much is actually going to the company they are patronizing.

Transparency in our tax system is something we have never known, but I think we could get used to it. If you don’t like it we can always hand the power back over to the politicians.

Herman Cain – FairTax would supercharge US economy

Herman Cain, business man, political conservative, and possible Presidential candidate in 2012 talks about the ways the FairTax plan would supercharge the U.S. economy sooner rather than later.

  • The FairTax plan will replace the federal income and payroll based tax system with a simple, transparent and fair national retail sales tax.
  • You will bring home your entire paycheck, and then you decide when and how much you pay in taxes when you spend your money.
  • Taxes are assessed at the retail, or consumption, level so businesses will be able to compete globally.
  • The ability of politicians and lobbyists to manipulate the tax system to benefit themselves and their interests goes away under the FairTax plan.

The benefits of the FairTax plan are many, and the only way to make it happen is to get involved. Visit FairTax.org for more information or read the FairTax bill, H.R. 25, for yourself.

FairTax Repeals Federal Income Tax

The FairTax plan is intended to be revenue neutral, meaning that it is a tax system that replaces dollar for dollar the current federal income and payroll based taxes. The FairTax bill, however, goes one step further by calling for the repeal of the sixteenth amendment to the U.S. Constitution, which allows Congress to levy an income tax. Without the repeal of the sixteenth amendment we could eventually have both, a federal consumption tax and a federal income tax. So, the repeal of the sixteenth amendment is imperative and in fact is written into the FairTax bill, H.R. 25. If, for whatever reason, the sixteenth amendment has not been repealed within seven years of the FairTax being enacted, then the FairTax bill has a sunset clause that will eliminate the federal sales tax to ensure that we are not saddled with both forms of taxation.

How will the FairTax be collected?

Under the FairTax plan there will be no IRS. There will in fact be no need for the IRS because there will be no federal income taxes to collect or returns to file. Forty-five States today already collect sales taxes, so it will require no major adjustments for those States to also collect the FairTax. Have a listen as Denis Calabrese explains how the FairTax will be collected.

Fair Tax in 2012

By Bob Keefe
The Atlanta Journal-Constitution

WASHINGTON — Congressman-elect Rob Woodall campaigned on the Fair Tax idea that his former boss, retiring Rep. John Linder, has championed for years.

Woodall won the right to represent the conservative 7th Congressional District in northeast metro Atlanta, in fact, mainly because he out-Fair Tax-talked his Republican primary opponents.

Fair Tax supporters basically want to abolish the Internal Revenue Service, get rid of the federal income tax, corporate income taxes and other federal taxes and replace them with a national retail sales tax. Doing so, they say, will decrease the overall tax burden on consumers, reduce government spending and stimulate the economy.

So it wasn’t surprising that Woodall’s first meet-and-greet with the Washington press corps last week focused on his plans to reintroduce the Fair Tax bill that Linder has pushed for in Congress since 1999.

Between now and then, Woodall told me, he is busy rounding up a new posse of supporters on Capitol Hill.

“I only made one campaign promise,” he said. “If you elect me, you will see me put more co-sponsors on Fair Tax than ever before.”

Already, Woodall has 55 co-sponsors (10 former co-sponsors aren’t returning in January) and has talked to at least 10 new Congress members who support the idea, he said.

With one of the biggest influxes of newcomers to Congress in recent history, and Washington intent on overhauling federal spending and taxes, Woodall and his former boss say there has never been a better time for the Fair Tax idea.

“He [Woodall] is in a perfect position, with a lot younger legs than I have and a lot more fertile mind,” Linder said of his successor, protégé and former chief of staff.

Doing something as radical as abolishing the IRS and income taxes will take more than just dropping a bill in Congress, both Linder and Woodall acknowledge. That’s why both mentor and protégé also are working on making their Fair Tax idea an issue in the 2012 Presidential campaign, just like Republican primary contender Mike Huckabee did in 2008.

“Whenever you want to make huge changes or have big ideas, the President really has to lead the way,” Linder said.

Congressman Steve King on the FairTax

Congressman Steve King explains how adoption of H.R. 25, the Fair Tax, would strengthen the American economy.?

In this video Congressman Steve King (R-Iowa) describes a conversation with Alan Greenspan regarding the FairTax plan. He then goes on to give an excellent explanation of exactly how the FairTax would bring jobs back to the U.S. and help turn our economy around.

King made this statement shortly after attending a 12/09/10 press conference in which he joined Congressman John Linder, Congressman Tom Price, Congressman Phil Gingrey and Congressman-elect Rob Woodall to call for passage of HR 25 in the 112th Congress.

The time for tax reform is now

President Obama is right about one thing; it is time to reform our federal tax system. And, the only system that makes sense for America is the FairTax plan.

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

  • Enables workers to keep their entire paychecks
  • Enables retirees to keep their entire pensions
  • Refunds in advance the tax on purchases of basic necessities
  • Allows American products to compete fairly
  • Brings transparency and accountability to tax policy
  • Ensures Social Security and Medicare funding
  • Closes all loopholes and brings fairness to taxation
  • Abolishes the IRS

Americans for Fair Taxation, “www.fairtax.org,” offers a library of information about the features and benefits of the FairTax plan. Please explore it!