Say Goodbye to the Income Tax and the IRS
Sandra Simmons There is a way to get rid of the IRS and not ever have to file another personal income tax return; or company tax return for that matter! Every dime you earn would be in your paycheck; no taxes withheld. It is within your power to make it happen! Congress is reviewing a bill right now that would abolish the IRS and eliminate corporate taxes, personal income taxes, estate taxes, the death tax, etc. It's known as the FairTax Act and I am serious when I tell you it is not only fair, it would definitely solve the United States' economic problems overnight. First I do want to say that The FairTax is resisted by a vocal minority precisely because it will do what it claims in eliminating the IRS, the more than $300 billion in tax return filing costs, and the corruption of the current system. Here's a snapshot of what it is all about. What is the FairTax? The FairTax is a retail consumption tax that is charged when you buy something new. It is a transparent tax: it means that the tax will be printed on your sales receipt in plain English so you can see it. Right now you are paying those taxes when you buy something, but the taxes are hidden in the cost of the item all along the manufacturing line from the raw materials to the packaged end product. Those are called embedded taxes because they are not seen on your receipt. Under the FairTax Act, you would pay the exact same price for a gallon of milk, but the gallon would have a lower shelf price and the tax would be printed on your receipt when it is added at the cash register. Is the FairTax really fair? Absolutely. The FairTax is very fair. In fact, it is really much more fair than the current income tax. You get to control how much tax you pay by deciding what items you are going to buy. Wealthy people buy more expensive items that other individuals. The FairTax will tax them on those purchases. Illegal aliens and tourists, who pay no taxes now, would be paying their fair share every time they buy something. Someone who gets cash income and never reports it on their income tax return would now pay the consumption tax on that income when they spend it at the cash register. Yes, the government would still get as much tax revenue as they currently get, but the cost of running the government would be a lot less. The FairTax would have a very positive effect onAmerica's economy. With the penalty for working harder and producing more removed, American companies will experience a new era of expansion and economic growth. Hidden taxes disappear, U.S. citizens are able to save more, and companies invest more. The FairTax, as proposed, would bring American companies back home because it would not be an advantage to have U.S. companies in foreign countries paying low wages to workers for jobs that Americans should be doing here at home for fair wages. Workers would bring home exactlywhat they earn. It will put more money in the pockets of every American by eliminating the income tax. There would be no deductions from what you earn to pay federal taxes, Social Security or Medicare. If you earned $100 you would get paid $100. Companies would no longer be saddled with paying additional taxes on their employees wages for Social Security/Medicare. The FairTax has a positive effect on Social Security/Medicare. Under the FairTax Act there would be plenty of money available for both these programs. Like the rest of the federal spending programs, Social Security would operate just like it does today, except that its funding would come from a consumption tax, instead of a payroll tax. Employers would continue to send in reports of the wages they pay to each employee to the Social Security Administration only for the calculation of benefits. The move to a reformed Social Security system would be eased while ensuring there is enough money to continue paying promised benefits. The FairTax shields low-income and lower-middle-income families and individuals. Under the FairTax Plan, people near poverty level pay zero net FairTax up to the poverty level! Every citizen or household receives a prebate check each month equal to the FairTax paid on essential goods and services [medicine and groceries], and all wage earners are no longer subjected to the most oppressive tax of all, the payroll tax. The FairTax protects senior citizens. Seniors do very well under the FairTax. Low-income seniors get better benefits under the FairTax than underthe current income tax system. Some people incorrectly believe that those who live only on Social Security pay no taxes. Those people might not be aware of it, but they are paying hidden corporate income taxes and employer payroll taxes whenever they buy anything. Under the FairTax, seniors pay $0.23 out of every dollar they choose to spend on new items. Plus, seniors, like everyone else, will receive the monthly prebate check, in advance of purchases, for taxes paid on the cost of necessities. Yes, The FairTax CAN become law! The FairTax has undertaken to build grassroots alliances and a grassroots movement to support the effort. However, this will only happen when the American people rally behind the effort, throw off the chains of income tax bondage, and demand that Congress correct 90 years of wrongs done by the income tax. What you can do RIGHT NOW to ensure this bill gets passed. First, sign the FairTax on-line petition at the FairTax.org website to let Congress and the President know that you demand this bill gets passed into law. While you are on the website, view the congressional scorecard to find out if your state congressional representatives support this bill. If they don't, write them a letter and tell them that you want them to vote for passing this bill and that you will be monitoring this scorecard to see how they stand come election time. Second, read The FairTax Book: Saying Goodbye to the Income Tax and the IRS by Neal Boortz and Congressman John Linder. Read it so you understand what this bill actually says. The book is easy to understand. Then give it to a friend to read and ask them to pass it on, too. About the Author
Sandra Simmons, President of Money Management Solutions, has years of experience helping business owners and families manage their income to achieve their financial golas. To learn more about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.MoneyMgmtSolutions.com Sandra Simmons may be contacted at http://www.moneymgmtsolutions.com/blog/. Click here to view more articles by Sandra Simmons. Reprinted with Permission from IdeaMarketers.com
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