Elections are close by and the rhetoric from all sides is heating up. Tax the rich! 47 percent of Americans do not pay income taxes!
What is the common underlying factor in these and similar statements? The income tax system is broken and our nation, especially Americans ages 18-29, is suffering. In fact, 1.7 million of these young people have been jobless for the past year. This is the highest unemployment rate for that age group since World War II. This is a generation in danger of becoming the “lost generation.”
There is a solution, called the fair tax. The fair tax is a comprehensive plan to replace federal income and payroll taxes with a consumption tax on new goods and services.
Under the fair tax, no tax credits or exemptions are provided. However, fair tax provides a monthly, universal “prebate” or rebate that makes sure each household with income under the federal poverty level can meet their needs without receiving an undue burden in the form of a consumption tax, thereby making the fair tax progressive.
Those who intentionally pay no income tax will no longer have that choice. They, too, will pay at the point of sale for items purchased. The obligatory annual report to the IRS in the form of the income tax return will be gone. It will no longer be needed.
Under the fair tax, hidden taxes such as payroll taxes which employers must take into consideration when pricing an item will no longer apply. Workers will keep 100 percent of the wages they earn after paying state and local taxes.
What does this mean for America? It will result in a powerful economic growth which will lead to job creation. The fair tax provides hope for bringing hundreds of thousands of lost jobs back to America.
Donald L. Jackson,