IS THERE SUCH A THING AS "FAIR TAX"

The "Fair Tax" is the only way to tax everyone in a fair manner. The Fair Tax is replacement, not reform. It will replace the current tax system and eleminate the need for the IRS and tax forms that get more complicated every year. I have been following this for a few years now and am convinced it can be passed. Do women have the right to vote? Did we pass Prohibition? Did we repeal it? It took grassroot efforts and that is what it will take to pass the Fair Tax.
I am attaching to this post a Fair Tax FAQ. I encourage you to read it closely and if you have any questions please feel free to contact me. Better yet, go to www.fairtax.org for complete information and add your name to the list of those who stand behind change for the better. I can't encourage you enough to get behind this and pass the word along to your friends. Direct them to this blog, sight so they can read what you are reading-- www.insightjoe.blogspot.com.

Fair Tax Frequently Asked Questions

[1] What is taxed? The Fair Tax is a single-rate, federal retail sales tax collected only once, at the point of purchase of new good and services for personal consumption. Used items are not taxed. Business-to-business purchases for the production of goods and services are not taxed. A rebate makes the effective rate progressive.
[2] Exactly what taxes are abolished? The Fair Tax is replacement, not reform. It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.
[3] How does the rebate work? All valid Social Security cardholders that are U.S. residents receive monthly rebate equivalent to the Fair Tax paid on essential goods and services, also known as poverty level expenditures. The rebate is paid in advance, in equal installments each month. See below for example of the rebate:
Family Mthly. Rebate MthlyRebate
Size (Single) (Married)
1 $NA $183
2 $246 $367
3 $308 $429
4 $371 $492
5 $433 $554
6 $496 $617
7 $558 $679
8 $621 $742

[4] Is the 23% Fair Tax revenue-neutral rate higher or lower when compared to income and Social Security taxes people pay today? Most people are paying that much or more today - part of it is hidden from view. The income tax bracket most people fall into is 15%, and wager earners pay 7.65% in payroll taxes. That’s 23% right there without taking into account the 7.65% employer matching! On top of that, you have to add in all of the hidden taxes embedded in the price of everything you buy, from goods (averaging 22%) to services (averaging 25%).
Effective tax rates vs. stated tax rates.
Because the 23% Fair Tax rate of $0.23 on every dollar spent is not imposed on necessities, an individual spending $28,808 pays an effective tax rate of only 15.6%, not 23%. This same individual will pay 17.3% of his or her income to federal taxes under current law.
[5] Does the Fair Tax rate need to be much higher to be revenue neutral? The proper tax rate has been carefully worked out; 23% does the job of: [a] raising the same amount of federal taxes as are raised by the current system, [b] paying the universal rebate, and [c] paying the collection fee to retailers and state governments. Detailed calculations are available from FairTax.org.
[6] How is the Social Security system affected? Like all federal spending programs, Social Security operates exactly as it does today, except that its funds come from a broad, progressive sales tax rather than a narrow, regressive payroll tax. Employers continue to report wages for each employee though, to the Social Security Administration for determination of benefits.
[7] How does the Fair Tax affect Social Security reform? The Fair Tax plan does not change Social Security benefits or the structure of the Social Security system. All it does is replace the current revenue source (narrow, regressive payroll taxes) with a new revenue source (broad, progressive sales taxes paid by all consumers).
[8] Is consumption a reliable source of revenue? Yes, in fact, consumption is a more stable source of revenue than income. A recent study has shown that the Fair Tax base is less variable than the income tax base. Again, see FairTax.org for more information on this matter.

[9] How is the tax collected? Retail businesses collect the tax from the consumer, just as state sales tax systems already do in 45 states; the Fair Tax is simply an additional line on the current sales tax reporting form. Retailers simply collect the tax and send it to the state taxing authority. All businesses serving as collection agents receive a fee for collection, and the states also receive a collection fee.
[10] Why is the Fair Tax better than our current system? Our present tax system is one of the reasons that people are finding it so difficult to get ahead these days. The income tax is holding us back and making it more difficult than it needs to be to improve our families’ standard of living. It makes it needlessly difficult for our businesses to compete in international markets. It wastes vast resources on complying with needless paperwork.
[11] Is the Fair Tax fair? Yes, and in fact, much fairer than the income tax. Rich people spend more money than other individuals. They buy expensive cars, big houses and yachts. They buy filet mignon instead of hamburger, fine wine instead of beer, designer dresses, and expensive jewelry. The Fair Tax taxes them on these purchases. If, however, they use their money to build job-creating factories, finance research and development to create new products, or fund charitable activities (all of which help improve the standard of living of others), then those activities are not taxes.
[12] How does the Fair Tax protect low-income and lower-middle-income families and individuals? Under the Fair Tax plan, poor people pay no net Fair Tax at all up to the poverty level. Every household receives a rebate that is equal to the Fair tax paid on essential goods and services. The Fair Tax dramatically improves economic growth and wage rates for all, but especially for lower income families and individuals. In addition to receiving the monthly Fair Tax rebate, these taxpayers are freed from regressive payroll taxes, the federal income tax, and the compliance burden associated with each. They pay no more hidden taxes on good or services, and used good are tax-free.
[13] What about senior citizens, retired people, and anyone on a fixed income? Seniors, like everyone else, receive a monthly rebate, in advance of their purchases, for taxes paid on the cost of necessities. If seniors choose to work, they are freed from regressive payroll taxes, the federal income tax on wages, and the compliance burdens associates with each. See FairTax.org for more details of this.
[14] Should the government tax medicine and health care? Because federal income and payroll taxes are embedded in the price of everything you buy, you are already paying federal taxes on prescriptions and other health care services that you buy today - they are just hidden.
[15] How does the Fair Tax affect income tax preparers, accountants, and many government employees? There will, of course, still be some people who are involved in sales tax return preparation and sales tax administration under the Fair Tax, but many fewer than those involved under the income tax today. These are well educated and well equipped with transferable skills, and will have to find more productive work. The projects 10.5% growth in the economy during the first year of Fair Tax will provide plenty of new jobs.
[16] What will happen to charitable giving? Charitable contributions depend on one factor more than any other: The health of the economy (not tax benefits). For all the money that pours into churches every Sunday and into a broad range of charities every day, only the 30% who itemize get any tax benefit. The other 70% have given and are giving with no tax benefit whatsoever. The majority of people do not base their giving on tax benefits but rather the desire to give.
[17] Can the Fair Tax really be passed into law? Do women have the right to vote in this country? Did we pass Prohibition? Did we repeal it? These types of grassroots efforts effected significant changes in our nation and world. Is the current income tax system any less a yoke around the necks of otherwise free people? We think not! Passing the original 16th Amendment and the income tax wasn’t easy and repealing the income tax and the 16th Amendment won’t be easy either. It will only happen when the American people rally behind the effort, throw off the yoke, and demand rectification for 90 years of wrongs done by the income tax.
For more “Frequently Asked Questions” and further information detailing the Fair Tax Plan, go to www.FairTax.org.