What if the FairTax was our current tax system and H.R. 25 was a bill that would replace the FairTax with a complicated system incorporating an income tax, a payroll tax, a corporate tax, a capital gains tax, a gift tax and an estate tax? How many people do you believe would band together to promote this new bill.
Under this new bill:
(1) On April 15th of each year, you will be required to file a complicated income tax return. A watch dog organization known as the IRS will be formed to audit these returns. If you fail to file this return or if you make mistakes, you will be subject to stiff interest and penalties. To support your figures, you will be required to keep records of all your financial transactions.
(2) There will be many deductions that only certain people will be able to take advantage of and there will be loopholes which will protect mainly wealthy Americans. Taxpayers who aren't able to take advantage of these loopholes will be required to make up the difference in lost revenue.
(3) The new tax code will consist of thousands of pages of rules. Most people will need to hire an advisor who probably will not completely understand this new code.
(4)You will no longer receive 100% of your paycheck. The government will keep their share before you have a chance to spend it.
(5) You will now be penalized for productivity; if you need to take on a second job to fill your family needs, the government will keep a larger up-front percentage.
(6) You will no longer receive your monthly prebate check. If you are among those who earn poverty level or less, your will no longer be totally tax exempt. At least 7.65% of your earnings will be deducted from your pay check before you have a chance to spend it.
(7) Under the new bill there will be corporate taxes, capital gains taxes, and a 15.3% payroll tax. You will have 7.65% ducted from your paycheck and the company you work for must match this amount. For corporations to maintain there current profit margins, these taxes need to be added to the cost of goods and services. Compliance cost involved in maintaining records and hiring expert advisers will also be added to the cost of goods and services. Retail prices could increase as much as 22% as the result of these taxes and compliance costs
(8) No longer will the earnings from your savings and investments be free from tax.
(9) No longer will the money you spend on education be tax free. You will be using after tax dollars to pay for tuition.
(10) Since there will now be corporate taxes, capital gains taxes and payroll taxes, trillions of dollars will leave the American economy to work in foreign markets. There will be fewer jobs but you will be able to save money by purchasing Chinese products.
(11) The new tax bill would give more power back to government where it belongs. Congressmen will now be able to receive favors from lobbyists when they support tax reform that will benefit these lobbyists special interest.
(12) Taxes are too transparent under the FairTax. The new bill will allow the Federal Government to raise taxes by manipulate the code without you realizing it. This is good; you shouldn’t have the privilege of knowing how much of your total income is being spent by the government.
(13) And here is the best part of the new tax proposal; illegal aliens, drug dealers and tourists will no longer be paying taxes. You will be required to make up this lost revenue.
Are you ready to support this new bill?