|(They, the politicians and pundits)
|BUSH: "I'm not exactly sure how big the
National Sales Tax is going to have to be, but it's the kind
of interesting idea that we ought to explore seriously."
|KERRY: "This tax will hurt small business,
it will hurt jobs, and it will hit the pocketbooks of those
who need tax relief the most." |
|"People ask me if I'm really calling for the elimination
of the I.R.S. and I say, I think that's a great thing to do
for future generations of Americans." |
Speaker of the
House, Dennis Hastert, (R-IL)
|"Every serious analysis that has ever been done, other
than those paid for by sales tax advocates, has shown the plan
to be utterly unworkable...With all due respect to Speaker
Hastert, trying to eliminate the I.R.S. by adopting a National
Sales Tax is a very dumb idea." |
Conservative Economist and author of the book, Reaganomics:
Supply Side Economics in Action
|"On the business side, a consumption-based tax would scrap
the complex depreciation system for immediate capital
expenses. That reform would make U.S. businesses much
more competitive in the world economy and create an investment
boom that would drive Americans' wages higher." |
Edwards, Director of Fiscal Policy, CATO Institute
|"The tax shift is one of the greatest games of
government...It's true that I can choose not to consume that
item. Similarly, under the income tax, I can choose not
to earn income." Lew Rockwell, President, Ludwig von Mises
Institute, a Libertarian economic think tank |
|"The one thing no one should expect, despite the rhetoric,
is that their taxes are going to go down because government
needs money now more than ever." |
Congressman Ron Paul
|"If we look at the personal savings numbers, the reach for
excess in the 1990s is being unwound. The tax code is a
luxury the economy can no longer afford." |
Lindsey, Bush Chief Economic Advisor
|"Imagine a 40 to 50% sales tax! That would cheer
everybody up!" |
Robert McIntyre, Director of the
Citizens for Tax Justice, a liberal think tank
|"Any tax reform must result in a tax code that is simple,
fair, voluntary, transparent, border neutral, strengthens
Social Security and has manageable transition costs."
Congressman John Linder (R-GA) who introduced this bill
in the House
|(We, the people) |
|"We should still give tax refunds for the people who are
not as fortunate as others...We need to find a way to tax the
illegals and the people who deal on the black market."
B. N. B.
Mary Esther, Fla.
|"I say 'tithe' the nation...If the Lord can live off of
ten percent, perhaps the government should also." |
|"Even though this bill will all but end my 10-year old
income tax preparation business, I love it, I love it, I love
|"This would be the perfect way to boost our economy and
let us have our money while the goverment still gets theirs.
Everybody would pay taxes, not just working America."
|"I don't know if I am for or against it, but the bottom
line is we all want to pay less in taxes, but if the
government still needs the same amount of money, how is that
going to happen? If I pay less, then you will have to
pay more. It's a zero-sum game." |
|"Dissolve the IRS, keep your entire paycheck, with no
federal withholding, lower effective tax rates, create jobs
and become a tax haven for business all over the world,
eliminate Social Security withholding, eliminate corporate
taxes and the cost of complying with those taxes that are
passed on to me, repeal the 16th Ammendment to the
Constitution, regain the hours I spend working on my taxes
every spring, no taxes on interest, or capital gains,
additional tax revenue from tourists and illegal immigrants:
What could be wrong with a plan like that!" |
|"It's time for the illegals in this country to start
chipping in their share instead of reaping the benefits of our
government at the taxpayer's expense." |
|"We do need tax reform. Yes, this reform may hurt
many of those who currently work for the I.R.S.; but perhaps
with the elimination of their jobs, they could be put to
better use in other areas of the country." |
G. S. E.
|"I've been advocating this idea (voting option 1) for
H. G. K.
|"Any one who opposes the Fair Tax...does not understand
the impact that will be made for everyone in the U.S."
|"This is the ONLY fair alternative for all Americans."
S. A. M.
|"The present tax code is too complicated, and a change is
necessary and inevitable. One has to think of the savings a
Fair Tax bill would do: eliminating the I.R.S.
completely which the American taxpayer pays for.
According to statistics, American taxpayers pay more for the
cost of the I.R.S. than the C.I.A. and F.B.I. combined."
R. E. S.
|"We need reform, but I don't think a sales tax is the
right way to go." |
D. L. S.
|"It would eliminate all the unfairness posed by special
interest provisions, and it would 'value' savings not
consumption. Not in favor of the rebates and credits.
Keep it simple." |
Salt Lake City, Utah
The number of pages in the U. S. tax code
nearly tripled in the last 30 years
|According to CCH, Inc. |
||HR 25, |
|Which statement best describes your opinion of this
bill to abolish the I.R.S. in favor of a National Sales Tax?
Proponents say this bill simplifies the tax process.
Better yet, it's ultimately fair, with everyone being charged
the same tax rate. The fact that you're only taxed on what
you spend will encourage savings and build America's wealth.
Opponents say that prices will skyrocket and low-income
families will be hurt the worst. The net effect would be a
lower tax rate for the wealthy who spend a smaller portion of their
earnings and reap more profit from investments.
|Vote in the box above to tell Congress what you say!
|RESULTS OF VOTING |
||79.7 % |
||5.8 % |
||2.9 % |
||1.4 % |
||10.2 % ||
|HR 25 / S 2095: |
FAIR TAX ACT
The Fair Tax Act (HR25/S1493) is designed to "promote freedom,
fairness and economic opportunity by repealing the income tax and
other taxes, abolishing the I.R.S., and enacting a national sales
tax to be administered primarily by the states." In this
bill, introduced by Senator Saxby Chambliss (R-GA) and Congressman
John Linder (R-GA), the 16th Amendment to the Constitution allowing
income taxation would be repealed and the I.R.S. dismantled.
As a result, 100% of a person's wages would be paid to that person —
no taxes withheld.
Gone are all taxes on:
- Personal income
- Corporate income
- Goods and services to be resold
Gone also is the I.R.S. itself. "No other appropriations
shall be authorized." After two years, all records would be
destroyed except those needed to administer Social Security and
those needed in ongoing lawsuits.
Missing as well are deductions. No credit for home ownership
interest, or business expenses, or charity.
Instead of taxing income, the U.S. government will raise
operating revenues by taxing consumption. Anything and
everything that is purchased will be taxed at a rate of 23% for the
first year. After that, the rate can be adjusted as
"necessary to raise the amount of revenue that would have been
raised" at a tax rate of about 15% PLUS the current 12.4% FICA and
2.9% Medicare taxes. (Various experts have predicted the real
rate could be anywhere from 11% to 60%.) In other words,
these sales taxes have to fund Social Security and Medicare
obligations at the current level in addition to paying the
To encourage savings, the gains from investments are tax-exempt.
Financial and insurance institutes that offer investment
services will only charge sales tax on the fees for services they
charge. This can effectively lower the tax rates for those
who invest. For example, if you spend 100% of your income,
you are taxed on 100% of your income. However if you save 30%
of your income, you're only taxed on the 70% you spend. So
overall, the percentage paid in taxes by the saver is lower than the
rate paid by those who spend everything they make.
To offset this regressive tax effect on lower-income families,
every family will be given an annual credit equal to poverty level
income. Families register annually; then every month the
government mails or electronically deposits a rebate check.
Corporations also receive monthly rebates and can earn credits for
things like administrative efficiency, export sales, bad debts and
insurance proceeds. As a result, business rebates will vary
month to month and from business to business.
The National Sales Tax would be collected at the point of sale —
at the grocery store or car lot or hair dresser's salon.
Businesses that sell goods and services simply add the tax onto
their bills. Large sellers (those who will pay over $100,000
in tax and sell more than $435,000 a year) must make tax deposits
weekly. It's up to the states to administer the collection
system since 45 out of 50 already have collection systems for state
sales taxes. In addition, the bill earmarks 00.25% of the
taxes collected to reimburse the states for their administrative
costs. A new Sales Tax Bureau will be set up on the federal
level and with oversight given to the Secretary of the Treasury.
A separate department will be set up for excise taxes and
taxes on alcohol and tobacco will continue to be collected by the
Bureau of Alcohol, Tobacco and Firearms.
So what do you think? Would changing the way Americans pay
taxes be good or bad for the country? Voice your opinion and
vote your conscience!