In case you haven’t heard, there is a bill currently in both houses of Congress that would abolish the income tax, payroll taxes, death tax, and gift tax along with doing away with the IRS!

Imagine bringing home your ENTIRE paycheck!!!

The FairTax (HR.25 in the House and S.25 in the Senate) would replace all current income taxes (including the standard income tax along with payroll, gift, and death taxes) with a national sales tax at a rate of 23% on all new goods and services. Don’t panic! Economists’ current estimate is that somewhere around 22% is already embedded into the price of goods and services due to the current tax system. Since, of course, businesses don’t pay their own taxes, but instead pass them along to the consumer, we are already paying a 22% tax on goods and services…we just don’t notice it. By doing away with the current tax system, this 22% will fall away, leaving us with the actual cost of the good (for an example of this, read up on what happened when the tax on airline tickets expired. It only took one airline dropping its prices in order to become competitive to cause the price for all airline tickets to fall…ahhh, the beauty of a free market.) So, minus the 22% embedded tax that we are currently paying, a 23% sales tax would only add 1% to the prices of goods and services. Marvelous!

Don’t forget…you would be bringing home your ENTIRE paycheck! I don’t know about you, but that means another $400 per month for me!!!

Now, before someone tries to argue that this tax is regressive…
Proponents of the fairtax don’t believe that anyone (ANYONE) should have to pay taxes on those goods and services that are necessary for living (food, clothing, medicine, etc). So, the FairTax provides a prebate, paid to heads of households at the beginning of each month, in order to cover the taxes on what a family, made up of x number of people, needs in order to survive.

Not only will you be bringing home your ENTIRE paycheck, but you won’t have to pay taxes on groceries, clothing, or medicine! Brilliant!

The FairTax is a tax only on NEW goods and services. Need a car, but don’t want to pay the taxes? Easy, buy a used car. You only pay taxes on new cars. Want a house, but don’t want to pay taxes? Easy, buy a used home. You only pay taxes on new construction.

And you’re bringing home your ENTIRE paycheck!!!

What’s in it for the government? How could we possibly get this passed? The FairTax would mean absolutely no decrease in revenue for the federal government. They have nothing to lose, but we have everything to gain, like bringing home whole paychecks!

Can you tell I’m just a little excited about this proposal? I want you to be excited, too! Did I mention that you would get to bring home your entire paycheck?

For more information go to http://www.fairtax.org, pick up a copy of Neil Boortz’s “The FairTax Book”, or read the bill for yourself at http://www.house.gov (HR.25) or http://www.senate.gove (S.25), and then WRITE YOUR CONGRESSMEN! The only way this bill has a chance is if we let our representatives know that this is what we want. Remember, they won’t lose a penny of revenue, but we’ll each be taking home all the money that we earn!

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