फेयर टैक्स Act

I found this site, very interesting, very good reading!

http://givemeliberty.org/


Solution: Fair Tax
J I saw two men discussing the possible dissolve of the Internal Revenue Service (IRS) and Income Tax. They were talking about a "fair tax" on consumption, which is simply a sales tax. So, for everything you buy, the sales tax would be higher, MUCH higher, something like an additional 20-25%.

Here in Canada we have a national sales tax of 5%, and an additional provincial tax of 5%. That's an 10% tax on everything we buy. However, the highest income tax rate for Canada is 29% on everything over $120,887. Funny, that seems a lot lower when you're not writing a check to the Government for 5-figures. Regardless, it means that the Government takes 39% of every dollar I make.

Moreover, the talking heads on CNN indicated that the consumption in the US is approx 9 trillion dollars per year (If I remember correctly) while income tax is significantly lower than that ($4 Trillion?)

The benfit to a switching to the "Fair Tax" is simplicity. There is no more IRS. There is no more chasing people to pay their taxes. Everyone pays their tax when they buy an item. Simple.

But does anyone really want to pay 30% tax on a toaster? Not really. But, those who save money and don't spend like crazy would accumulate a fortune without income taxes.

It might be a great idea to instead of switching 100%, increase the sales tax and decrease the income tax accordingly, and see how it goes. If it works well, then scrap the income tax. Afterall, income tax is illegal, right?

Originally posted Nov 30, 2007
Revised May 29, 2008
with content adapted from givemeliberty.org