Replace All Federal Taxes on Income with the Fair Tax Act , HR 25

My opinion on Heritage Foundation's new Flat Tax plan

Heritage announces its new tax plan -- The New Flat Tax--Easy as One, Two, Three

Note how Heritage feels its rate is low at 28% but ignores the Fair Tax rate even lower rate of 23%.

Heritage Excerpt:

A rate of 28 percent is comparable to or significantly below the typical rate facing an individual or family today. A working family today is subject to a 15.3 percent payroll tax rate, plus either a 15 percent or 25 percent individual income tax rate, for a combined rate of 30.3 percent or 35.3 percent.

The Fair Tax plan is also simpler -- make a purchase and pay the tax

Heritage Excerpt:

For individuals, the New Flat Tax is as simple as one, two, three—one rate, two credits, three deductions. The New Flat Tax applies a single tax rate, about 28 percent, to wages and salaries and related benefits after subtracting all net saving. Taxable income is reduced by the net amount contributed to savings, and savings will be taxable only when spent.

Also it appears the Heritage plan does not protect your privacy, you still need to report your income to the government. Under the Fair Tax your income, spending, and savings are none of the government's business.

Fair Tax on business -- zero tax rate

Heritage Excerpt:

Today’s business tax code is replaced with a tax on the sales of domestic goods and services with deductions for labor costs and business costs, including expensing of capital purchases. After a brief transition period all business activity, including corporate, will be taxed at the same, low rate that applies to individuals. Really? 28% a low rate for business -- try zero.

Remember businesses do not pay taxes -- a business only collects taxes (plus compliance costs) from the consumer and passes your money on to the government.

http://www.heritage.org/research/reports/2011/12/the-new-flat-tax-e...

It really should not surprise anyone why the Flat Tax advocates do not want to compare their tax plan to the Fair Tax in a public forum -- because Fair Tax wins!

Thanks,

Marilyn Rickert

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Comment by Adrian Messer, Jr. on December 16, 2011 at 12:36pm: Thanks for telling the truth! FYI, I have tried to get Heritage to acknowledge FairTax for years! Isn't it amazing how organizations ignore information that supports their agenda. Just like many, so called- informed Politicians, they continue to support programs that add to the problems in society that give them something to rave about changing.

Comment by Marilyn Rickert on December 15, 2011 at 11:48pm: Thanks! We need to educate people about the Fair Tax and the other tax plans too.

Comment by Frank Gilbert on December 15, 2011 at 8:00pm: Great Marilyn. I posted it on my Facebook page.

Comment by Paul Wheaton on December 15, 2011 at 4:30pm: Shared on my page. Thank you.