What is the FairTax and which Presidential candidates are supporting it?Submitted by legalizeliberty on Tue, 08/07/2012 - 15:53
The current federal income tax system is clearly broken -- unfair, overly complex, and almost impossible for most Americans to understand. The FairTax is a reasonable, bipartisan alternative that is both fair and easy to understand. A system that allows you to keep your whole paycheck and only pay taxes on what you spend.
The FairTax is a national sales tax that treats every person equally and allows American businesses to thrive, while generating the same tax revenue as the current three-million-word-plus word tax code. Under the FairTax, every person living in the United States pays a 23% national sales tax on purchases of new goods and services. This rate is equal to the lowest current income tax bracket (15%) combined with employee payroll taxes (7.65%), both of which will be eliminated. Each American earning a living would no longer have the payroll tax taken out of their paycheck.
Gary Johnson has said in numerous forums and in his twitter chat that he supports the FairTax. He supports it over a flat tax although he'd sign either bill if placed on the president's desk.
The general highlights of FairTax are:
•Enables workers to keep their entire paychecks
•Enables retirees to keep their entire pensions
•Refunds in advance the tax on purchases of basic necessities
•Allows American products to compete fairly
•Brings transparency and accountability to tax policy
•Ensures Social Security and Medicare funding
•Closes all loopholes and brings fairness to taxation
•Abolishes the IRS
•Abolishing payroll tax
•Abolishing highest in world corporate tax