The year 2013 will be the 100th anniversary of the 16th amendment, which allowed Congress to levy income tax and discourage working. Since that time, the income tax code has ballooned to an unfathomable 75,000+ pages and counting. It is truly taxation without comprehension. What better way to celebrate, than by completely eliminating it?
HR 25 (the FairTax bill) is a bill in Congress with 71 sponsors in the House and nine in the Senate. It completely replaces income tax — both personal and corporate, with what the country had before — a consumption tax.
With 45 states currently collecting state sales tax, including a national retail sales tax in the same process would have minimal setup and operating expense. Everyone who buys new items (even illegal aliens, drug dealers, and pimps) would be directly supporting the federal government.
Imagine what would happen if we reduced the corporate income tax to zero? Companies would flood to the United States to set up shop creating millions and millions of new jobs. (The estimate is 16 million non-farm jobs in the first year alone).
For those of you thinking we need to tax the corporations, think again. Corporations don’t pay tax, they pass the cost of the tax and tax compliance on to you and me in the form of higher prices for their products, lower wages for their employees or lower dividends for their investors. Or they manipulate the code through lobbyists and campaign contributions so they really don’t pay tax. Take GE for example…
To make things fair for those living at the poverty level and spending all their money on the basic necessities of life, the bill has a provision called the pre-bate that reimburses every man, woman and child living in the United States legally for the amount of tax they would pay on the basic necessities to the poverty level. This completely un-taxes the poor and progressively adds tax to those living a more lavish lifestyle.
It’s time we go back to the principles laid out by our founding fathers and eliminate the Income Tax as well as the IRS. Years from now we’d wonder why it took 100 years to correct such a horrible mistake.
JOHN R. DEPUE