The fair tax book:
Saying goodbye to income tax and the irs
Death and taxes. They say these are the two certain things in life. And for many Americans, who have to face the IRS via monthly deductions on their paychecks, as well as the much dreaded income tax filing season, the later is indeed the reality.
The Fair Tax might just be the answer to every working persons dream. And with the “Fair Tax Book”, people will clearly understand what the hoopla is all about. Authors Republican Congressman John Linder of Georgia and conservative radio host Neal Boortz brilliantly lay out their case for tax reform in a very easy to read format, that’s even quite enjoyable (for a tax book). Anyone who would think that this book will send them to sleep is in for a real surprise.
The book argues that individuals would be better off following a switch from the country’s federal income-tax and withholding system, to a national sales tax of 23% on new goods and services.
The Fair Tax would replace the current federal income tax system, which taxes what a person earns, with a tax on what he spends. This national sales tax, to be levied on all retail goods, is much easier to understand than the current system of plus and minuses. In effect, this transforms the much-hated bureaucracy of the IRS into a more transparent and accountable tax collection system.
The ultimate benefit: the Fair Tax would allow employees to pocket one hundred percent of their paychecks.
And if this proposed consumption tax pans out, a person is taxed fairly (hence, the tax reform’s title) on what he chooses to spend his hard earned money on (since he is being taxed on what he spends). The more a person buys, the more taxes he pays. And inversely, the less a person buys, the less he pays pay in taxes. This makes America’s tax code truly voluntary. No more tax breaks as a political tool.
Another upside, while consumers would pay a federal sales tax on purchased items, the prices of goods and commodities at the store would stay the same. The reason: everyone involved in the process of production would no longer be paying taxes, so companies could charge less for their goods as well as labor.
The Fair Tax will only be applied to final retail products, and not the inputs used to manufacture these products, prices will drop an average of 22% across the economy ensuring prices will remain the same. Moreover, investors will be encouraged to invest without having to worry about tax consequences.
In addition, the Fair Tax protect lower-income Americans. Under the Fair Tax, every American will receive a monthly rebate check from the federal government that covers the cost of the basic necessities of life (such as food, gasoline, clothing, and the like).
The Fair Tax Book certainly does a great job in addressing the many issues of the proposed Federal Fair Tax Reform. Anyone grappling with questions on this propsed reform, or even those who already know about it but still want to be enlightened further, ought to grab a copy. It is succinct, highly informative and user-friendly. It presents a lot of ideas that every American should think about.
And if anyone is still deciding on whether they should spend their money on this, ought to just bite the bullet and buy it…before the 23% levy…but then again, prices will remain the same. END