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

Posted at Sodahead

 The key to putting Americans back to work is investment. Removing
capital gains, corporate income tax, individual income tax, and taxes on
savings and education would free up massive capital for investment. It
is estimated somewhere between 10 and 15 trillion dollars would come
back to the U.S. from the offshore accounts which were set up in the
first place to avoid taxes. Now that’s stimulus you can believe in,
and the beauty is that it would be private money. The role of the
government in that case would be to “get out of the way”!

 Under the FairTax, individuals would determine with each purchase when, and how much tax they would pay. Because of the “prebate” no one
would be taxed on living necessities. Instead of 1040s and worse, your
tax gets collected (and spelled out transparently) with each register
receipt. Done deal! The IRS would shrivel to a ghost of its former
self. It’s been said that the FairTax would be the greatest return of
freedom to the American people since the country began.

deal irs shrivel ghost fairtax return freedom american people country

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Comment by chiefcook on August 19, 2010 at 4:56pm: Hank, You state
"I am still very skeptical about the claims about all that capital rushing home. Nowhere is there any mention about amnesty in HR25."

What form of amnesty are you looking for? If there is no longer any income tax to be paid on investments, capital gains, savings or interest, what would amnesty apply to?

Comment by Dave Boone on August 18, 2010 at 10:17pm: Hank, here's what I have on your first objection.

The challenge of U.S. dollars being moved to offshore bank accounts in an effort to avoid paying taxes on capital gains and interest has grown to about $11 trillion (up from 1.3 trillion just a couple of years ago) and is growing by $800 billion per year, resulting in billions of dollars in lost tax revenue every year. Former Federal Reserve Chairman Alan Greenspan said that once the FairTax is passed it would take only months for that money to be repatriated back into U.S. banks where it could then be used to grow the economy

From an address given by Representative John Lindner at a Georgia FairTax Rally in 2009

An informal study in 1996 concluded that out of the international corporations interviewed, 75% said their future plans would include building their next manufacturing facility in the U.S. if a proposal such as the FairTax were enacted. A full 20% of those corporations further suggested that their world headquarters would be moved to the U.S. as well.
“Offshore tax havens hold trillions of dollars in assets supplied by high-net-worth individuals around the world,” Levin said. “Our investigation blows the lid off tax haven abuses that use sham trusts, shell corporations, and fake economic transactions to hide the fact that U.S. citizens are controlling offshore assets, circumventing U.S. legal requirements, and dodging taxes. These outrageous tax haven abuses are eating away at the fabric of our tax system, and it is long, long past time to shut them down. Tax havens have, in effect, declared war on honest U.S. taxpayers, and we’ve got to fight back utilizing the full legislative, executive, and administrative powers of the United States government.”

Release dated 8-1-2006 by Senator Carl Levin
I don't know where Lindner got his number. Guess we'll have to ask him.
I notice the offshore wealth of 1.6 trillion according to Tax Justice Network compares pretty closely to Lindner's starting point from "a couple of years ago". Nobody knows the exact number although the feds did make an attempt to get a handle on it last year with some kind of an amnesty deal. Even if it's a miserable 5-10 trillion, why not put it to work here?