Replace All Federal Taxes on Income with the Fair Tax Act , HR 25
HR-6169 - The Pathway to Job Creation through a Simpler, Fairer Tax Code Act
I have read HR6169 in its entirety and it is my opinion, and the opinion of others, that we should get behind HR 6169 for the following reasons:
1. HR6169 is co-sponsored by Congressman Rob Woodall. If there is any person in congress that we FairTaxers feel we can trust, it is Congressman Woodall. He has not steered us wrong, and if he is behind it, that's good enough reason for me.
Other co-sponsors of HR-6169 include (those Bolded are also co-sponsors of HR-25):
But in case it isn't enough for you, here are more reasons to support it:
2. HR 6169 itself is NOT a tax reform bill, but a bill to set in motion the ease of tax reform in the upcoming 113th Congress (January 2013-December 2014).
3. HR6169 will help to "fast track" tax reform bills; including, but not limited to The Fair Tax Act (HR-25) and the flat tax (HR-1040). I believe this is to prevent such things as what has been happening to the FairTax Act for the past 16 years. This bill will ensure that all future tax reform bills at least get their chance on the House and (possibly) Senate Floors.
4. The purpose of HR-6169 is to provide for enactment of comprehensive tax reform in 2013 that:
(1) protects taxpayers by creating a fairer, simpler, flatter tax code for individuals and families by (A) lowering marginal tax rates and broadening the tax base; (B) eliminating special interest loopholes; (C) reducing complexity in the tax code, making tax compliance easier and less costly; (D) repealing the Alternative Minimum Tax; (E) maintaining modern levels of progressivity so as to not overburden any one group or further erode the tax base; (F) making it easier for Americans to save; and (G) reducing the tax burdens imposed on married couples and families;
(2) is comprehensive (addressing both individual and corporate rates), so as to have the maximum economic impact by benefiting employers and their employees regardless of how a business is structured;
(3) results in tax revenue consistent with historical norms;
(4) spurs greater investment, innovation and job creation, and therefore increases economic activity and the size of the economy on a dynamic basis as compared to the current tax code; and
(5) makes American workers and businesses more competitive by (A) creating a stable, predictable tax code under which families and employers are best able to plan for the future; (B) keeping taxes on small businesses low; (C) reducing America's corporate tax rate, which is currently the highest in the industrialized world; (D) maintaining a level of parity between individual and corporate rates to reduce economic distortions; (E) promoting innovation in the United States; (F) transitioning to a globally competitive territorial tax system; (G) minimizing the double taxation of investment and capital; and (H) reducing the impact of taxes on business decisionmaking to allow such decisions to be driven by their economic potential.
5. HR-6169 is very short and extremely easy to read. You too can read HR-6169 here in all of about 10-15 minutes: http://thomas.loc.gov/cgi-bin/query/z?c112:H.R.6169:
Comment
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Comment by Robert Williams on July 31, 2012 at 8:48pm
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Sorry. Maybe I'm not conveying the message properly. HR6169 is not defining the tax plans, it is defining what the tax plans should include if they want to be "fast tracked".
Look at it like the "10 items or less" line in your grocery store. You have to meet certain criteria if you want the benefits, right?'All HR6169 is saying is if a tax plan meets certain criteria, then Congress must send it to the floor for a vote. This prevents situations like what is happening with the FairTax now.
This is an excerpt directly from the bill:
(b) Certification- The chair of the Joint Committee on Taxation shall notify the House and Senate in writing whenever the chair of the Joint Committee determines that an introduced bill described in subsection (a)(1) contains at least each of the following proposals:(1) a consolidation of the current 6 individual income tax brackets into not more than two brackets of 10 and not more than 25 percent;(2) a reduction in the corporate tax rate to not greater than 25 percent;(3) a repeal of the Alternative Minimum Tax;(4) a broadening of the tax base to maintain revenue between 18 and 19 percent of the economy; and(5) a change from a `worldwide' to a `territorial' system of taxation.
The FairTax meets or exceeds all those criteria. It "consolidates the current 6 individual income tax brackets into not more than two brackets of not more than 25%" (FairTax has ONE at 23%). It reduces "the corporate tax rate to not greater than 25%" (FairTax is ZERO). FairTax repeals the AMT. FairTax broadens the tax base to maintain revenue between 18-19% of the economy. And the FairTax changes our antiquated "worldwide" system to a border adjusted "territorial" system.Other tax plans may also meet that criteria, but the FairTax certainly does. This tells me that HR6169 can help us get the FairTax passed in the 113th Congress.
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Comment by cary henderson on July 31, 2012 at 6:14pm
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If Steve King signs on I might change my mind. I know what he thinks of the income tax.
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Brackets are only necessary with an income tax, the FairTax eliminates the need for them. And there are too many who will argue that we need a corporate tax. This will include corporations because their tax attornys will tell them that they need taxes so they can gain advantages from the tax code. Go figure.
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BTW, it doesn't read "...two income tax brackets..." It just says "two tax brackets".
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I understand, Cary. From what I understand, the maximum 25% is a cap to prevent anyone from pushing through a tax plan with a higher rate. And the two tax brackets is to ensure that any tax plan being "fast tracked" reduces the current 6 brackets to no more than 2 brackets.
I hope that helps.
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I'm still a bit skeptical, the bill also reads 2 income tax brackets of 10% and 25% and with a maximum 25% corporate income tax.
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