LTE - Fair Tax
Imagine what a boost the American economy would experience if taxpayers were handed a virtual $400-billion-per-year tax cut! This amount of extra money in our pockets would work to grow the economy. Further imagine that even with this virtual tax cut, the government would continue to be funded at its current level. The treasury would merely have to collect federal taxes through a simpler, more transparent and fairer system than our current tax code. The Fair Tax bills before Congress would replace the Internal Revenue Service with just such a system.
The report of President Bush’s Advisory Panel on Federal Tax Reform, published in late 2005, states that the money spent by Americans filling out their tax forms would fund “the Department of Homeland Security, the Department of State, NASA, the Department of Housing and Urban Development, the Environmental Protection Agency, the Department of Transportation, the United States Congress, our federal courts, and all of the federal government’s foreign aid.”
This same advisory panel noted that widespread noncompliance costs each honest taxpayer an extra $2,000 in taxes yearly. It further notes that due to the arbitrariness of the code increasing your income by 50 percent can increase your tax burden by 140 percent.
It shows that marginal income tax rates can now rise to more than 30 percent for a family earning just $30,000 per year. That’s does not include the 15 percent payroll tax. A 45 percent marginal rate on a $30,000 yearly income is happening today! This comes straight from the advisory panel experts. Who in his right mind can prefer the current system to the 23 percent Fair Tax?
Use the Fair Tax calculator and find out how much the Fair Tax can save you.