Phil Tuttobene here, You may have seen me recently posting around this and any other site that supports the Fair Tax. I'm amazed at how much mis-information is out there.
The fair tax abolishes the 16th amendment. It replaces all our present federal taxes with a 23% inclusive consumption tax. Its the fairest, most progressive tax system to date and is far superior to the broken tax system we now have.
I’ve done a lot of research on the Fair Tax (FT) I’m an independent so I want to assure everyone I do not have any hidden agenda to start posting here other than my passion to educate EVERY American and support ANY candidate that publicly supports the fair tax.
The elimination of the IRS, Income, Payroll, Interest, Inheritance, Death, capital gains, FICA, Medicare & Gift taxes by paying 23% federal sales new product consumption tax is only a small part of the FT, let me elaborate:
Illegal’s not only will now pay into the tax system, the fair tax will encourage them to either leave OR become citizens. Why? Because as illegal’s, they will not get the pre-bate check and essentially pay MORE taxes than a citizen. Since employers no longer match payroll deductions for these illegals, the incentives to hire them also go away. Illegal immigration now solved.
Illegal drug dealers, pimps, prostitutes, Career politicians that take under the table bribes (yes, they do that and I put them in the same category as the others). They will be paying taxes too through consumption.
Fairing up world trade:
Since Americas exports are no longer taxed we can now compete in the global market with our goods in other countries.
Since imports ARE taxed, manufacturers now have an incentive to bring their manufacturing BACK to America. Finally a solution to NAFTA!
That’s probably why Ross Perot loves the FT. The sucking sound in reverse!
Solving the American debt:
Since there is no longer an incentive for the rich to tax shelter their incomes in off shore accts, $12-$15 TRILLION (YES TRILLION) dollars will come back to America. Wow! Imagine what $15 Trillion would do for the economy! Can you say NO BAILOUT WOULD HAVE EVER BEEN NEEDED? I thought that you could.
A more efficient government:
Removing Tax Lobbyists, back room deals, corruption and power from the government.
Since tax loop holes are purposely put in the tax code to justify the lobbyists existence, they no longer will be needed making the Government a cleaner, more efficient entity.
$300 - 500 Billion a year saving in tax compliance:
We all love buying turbo tax and or paying accountants to do our taxes don't we? And we love saving those records for 7 years in case of an audit don't we? And we love the April 15th deadline to get the taxes done and the hours it takes to gather all our deductible receipts don't we? NO MORE. I say we make April 15th a national holiday and let people bask in our the success of eliminating the IRS!
Cost of goods eventually fall:
Yes, even with a 23% federal sales tax eventually they will fall. Why? Well with the elimination of payroll matching, Corporate, Capital Gains and all the other taxes corporations - AH CORRECTION , WE pay in the products we buy, called embedded costs, companies will start making more profit. And yes at first companies will keep that profit to start hiring people (new jobs, we hate that thought) and getting out of debt (even worse) but eventually in every market there will be a smart business owner that says, Hmmm, I’m making more profit! I can take more market share away from my competitor if I drop my prices. And then the free market starts working, everyone starts dropping their prices to be competitive and we the consumer start buying USA made goods that actually can compete with China! And they will work and they will have no Cadmium or lead.
No more taxes on used goods:
You can actually have a garage sale without the thought of an IRS audit! Of course you never had a garage sale that you didn’t report the taxes on right? Now you don’t need to worry about it because it's LEGAL.
Great for the low income people:
Why? Well besides the pre-bate that pays all legal citizens a monthly pre-bate to pre-pay for the taxes on food, medication and shelter, what do low income people (we all were young and broke once) usually buy? USED cars, USED homes, USED baby clothes etc. Wow, no more taxes on any of these items!
Great for the Middle income people :
No more taxes on savings, nor more taxes on education, no more taxes on income from stocks and investments!
Great for the Rich:
Now they can start legally claiming their income, stop sheltering it off shore in Euros and keep the money working for us in America. The banks say they were cash poor, we had to bail them out because of it.... No MORE!
Great for Retired people:
Even though you are retired you still get the Pre-bate check every month. This supplements your income and if you decided to sell your home because you are now an empty-nester and want to down size you do not have to pay capital gains tax on the difference between the value of your larger home versus a smaller home regardless of how much profit you make. If you decide to give a home to your children they don't have to pay a gift tax on it. They wont have to sell your family farm because they cant afford to pay the taxes to accept the gift!
That large nest egg no longer is taxed, no more taxes on interest on savings.
Great for Business owners and consultants :
No more self employment tax, no more 1099s.
Businesses can make decisions on whats best for the company:
The Fair Tax was originally thought up by a Texas businessman who after spending an entire meeting discussing ideas to make his company grow, realized most of the ideas were not based on that at all, they were based on how best to eliminate taxes for the company. In his opinion, this was not an efficient way to run a company. It has been estimated we have spent 6 billion hours complying with the tax code:
The Dollar becomes strong again:
American travelers can go to Europe and exchange their American money for more than a Euro and more than the British Pound! We can take vacations overseas without it costing twice as much! Only we wouldn’t wear sandals with knee socks or wear spandex shorts with fat hanging over so far you barely see the Speedo.
More income for both Americans and the Government:
Now come on Phil, how can that be possible !?
For American citizens:
How may people file a "short form" in April? Simply because they didn't keep receipts or don't want to go through the hassle of finding every deduction. The government loves that, money in their pockets. Retailers figured this trick out by giving coupons back to consumers that you mail in to redeem. How many people actually do this. I'm lucky, my wife does, but if it were me or most men, heck no, I don't have time for mailing in coupons! Just like the Government, they count on that. Also for most Americans, your income is being taken all year through the year, Who gets the interest on that money? I'll give you a hint. NOT YOU!
For the Government:
How many people do not file properly because they simply didn't understand the tax code or simply lied and didn't get caught? Ask Timothy Geithner !!
Defense gets stronger:
We have the money to keep our country safe.
Get off China's dependence:
Pay back the debt to China within a few years!
Repel the 16th amendment:
This is an integral part of the Fair Tax act:
Meaning the Fed. government could never again impose an income tax on the American people.
Have you ever asked someone how much they paid in federal taxes? You may get an answer like, I didn't, I got a refund this year. Most people really do not know what they paid. Well problem solved, you would know exactly how much you paid every time you purchase a new product because it would be clearly printed on the receipt. Now that its clear and in your mind every day, do you think Americans will keep letting the government waste that money? NO. Exactly why the government hopes to keep you dumb when it comes to supporting the fair tax.
Great for your 401K plan:
Under the fair tax, that 401K plan you have been saving with your entire life that taxes have been deferred on will no longer be deferred, the tax will be eliminated! Wow! another huge hike in your retirement! 100% of your 401K goes to you!
Now, do you still think the Fair Tax is only a 23% tax on consumption?
Now you know the rest of the story. Go out in the world and spread the word people.
And then go to my 102 course, "answering the critics", also on this web site.
Phil - PASSIONATE Fair Tax supporter