1) A bill implementing tax reform will be introduced in the House of Representatives by April 30, 2013. (http://www.govtrack.us/congress/bills/112/hr6169 )
Which type of tax reform do you prefer? (choose one)
___ An income tax with two payment levels, 10% and 25%
___ Replace the income tax with a consumption tax, such as the FairTax
___ A tax system that combines an income tax and a consumption tax
2) Call or e-mail your members of Congress and tell them which type of tax reform you prefer. (Find contact information here: http://www.congress.org/congressorg/directory/congdir.tt )
3) Send this e-mail to everyone in your contact list. Tax reform is not a Republican issue or a Democrat issue, but a government control issue. The government needs to hear from We the People – in both parties -- on the issue of tax reform. We the People still run this country! Tell your elected officials what you think about tax reform so they will know how to vote on this issue next year.
I agree totally! Lets get to work!
Very good, we really do need to get this out. What a great follow up to our Opportunity Drawing Cards! With the Opportunity Drawing Card there is a reason to read because the is something in it for every recipient. What's in it for me is always the question. Unlike a PUSH CARD which must be pushed upon someone, opportunity drawing cards on the other hand will be pulled from your hands, and of course they include the Fair Tax Message.
First we have to bring people to Fair Tax Nation and Fair Tax, then they may choose to respond. In our race against the clock we are engaged in a huge numbers game. Without the numbers we cannot possibly win! We are in the process of creating that Tsunami of public support that Rob Woodall and all of us agree is so necessary. Thank you for all that you do.
To make this great idea even better should we offer a fourth option:
______ A flat income tax with one payment level of (about) 17%
And could the current FT option be worded to include progressivity?
______ Replace income tax with sales tax made progressive by prebate to untax (all?) necessities (as per FairTax)
The prebate is an ingeniously simple mechanism to address the concern that many have with the regressivity of a consumption tax. However "progressive" taxation also has negative connotations for many people (re-distribution of wealth, etc.). It is best to just say "un-taxing necessities" and use the other terms only when the question comes up.
One bracket of 17% is not an option in H.R. 6169; so I didn't make it an option in my 3 Things e-mail. I only included things that meet the provisions in H.R. 6169. I also kept it as simple as possible, with no details about the prebate...Just following the KISS rule.
I am in favor of a national consumption tax like the FairTax as a complete replacement of the income tax, but I have several concerns with the specifics of the FairTax. One is the payroll tax. Tackling two controversial issues like tax reform and entitlement reform in one proposal makes it exponentially more difficult politically. The other is the rate. A 30% tax at the point of sale is also a total non-starter politically. Both of these concerns can be addressed very simply: keep the payroll tax separate and reduce the FairTax rate to 9%. That would be about right since federal discretionary spending has been historically about 10% of GDP (and could/should be even lower), plus the fact that a single-digit rate is politically much more doable (that's why 9-9-9 was such a hit, although I disagreed with it in terms of not abolishing the income tax). As for the payroll tax, that's a whole separate discussion that we need to have about entitlements and "mandatory" federal spending. Let's not burden/jeopardize the straightforward elimination of the income tax with that political landmine.
I agree with comments about wording and message - I am not sure in current form it is direct and clear enough.
Option 1 - this is just re-arranging the deck chairs on the Titanic of the current tax system - tinkering with % numbers again - and should fool no one. It leaves the current broken system in place with all its egregious side effects and negative impacts - it just sounds simpler - but it is not.
Option 3 - This is politicians dream - tax payers nightmare - as seen in Europe - with VAT and income tax. Citizens have no idea what is occurring except you have to pay, pay again and then pay again. Politicians can game the system and create a monster bureaucracy in each State and Federally to run the whole mess.
Option 2 - so if 1 and 3 are non-starters - option 2 needs to clearly state that a consumption tax that is offset to ensure a zero impact on low income families while providing a balanced fair system for everyone else - that allows you to determine your own level of taxation based on frugal or extravagance that you set - is the way to go - and that is the Fairtax approach. You can arm wrestle on the actual % of Fairtax to levee - but it is the system that is key - and what that transformation means - empowering citizens - whereas today citizens are shackled wage slaves living in fear of the tax system.
We need to show how todays world is totally manipulated and beholden to the IRS - saving for college, paying for college, saving for retirement, paying for medical insurance, dying, having a baby, getting married, getting sick, being unemployed, buying a car, open a bank account, the list goes on and on. Time to stop all this nonsense and the $410B we pay the IRS annually to administer it all - BADLY!
Option 1 is one of the provisions in H.R. 6169, and it is also outlined in Ryan's Budget plan and his Roadmap. So, it's not a non-starter. It is something Congress is considering.
Option 3 is discussed in detail in Ryan's Roadmap. He proposes to replace the Corporate Income Tax with a Business Consumption Tax -- which sounds a lot like a VAT.
Option 2 - If nothing else, it should get people to learn about the FairTax since it is the only tax plan that I mentioned by name and the only one listed that replaces the income tax.
Lisa, sadly Congress consider much that ordinary citizens can see is flawed and not serving their best interests. That said it is up to voters to point out that they consider these options as non-starters - aka political suicide. Yes - we are in the education business - showing citizens that there are much better options than what Congress is currently considering. Also the consequences and outcomes that all to clearly are written in Europe who have already gone down these paths that Congress are looking at.
I've been working on a survey here in Utah (see tax reform survey results) and so far the 9% version of the FairTax that I described above has nearly twice the support of the other alternatives, which were based on the proposals of the Republican presidential candidates during the primary and included the 23% FairTax. So I agree it is good to include alternatives that have actually been proposed by candidates or elected officials, but I don't think we need to limit ourselves to those choices. If anyone would like to take the survey, the link is http://www.surveymonkey.com/incometaxreform. Feel free to forward it to other concerned citizens as well.