The Fair Tax Would Be Good For LibertySubmitted by GeneLouis on Sat, 10/06/2012 - 21:49
There have been so many postings with inaccurate information on Fair Tax (H.R. 25) that I had to write this article to illuminate the reason why Fair Tax is the best tax proposal available and why it provides us with a good opportunity to promote liberty.
I have been interested in various proposals to eliminate the income tax since 1980. At that time, I began to question the reasons why the IRS had to be so abusive with their useless record keeping requirements, their abusive audits, their unjust penalties, and other business killing actions. Fair Tax was launched fifteen years later, in 1995, and it offered the best political chance that I had seen to eliminate the IRS, eliminate the income tax, and eliminate the 16th Amendment.
Here are some of the major points that would be of specific interest to liberty seekers:
1. No Tax is Fair.
There is no such thing as a tax that is fair. Taxing is the same as stealing, which is a violation of the ten commandments and a violation of natural law. However, if you want to eliminate taxation completely, it is not going to happen with this current government monstrosity. According to some historians, a major reason why the Constitution replaced the Articles of Confederation was to allow the Federal Government to collect taxes. H.R. 25 assumes that you want the least invasive, politically possible method to feed a government that will steal from you regardless of your desire for a voluntary society. Fair Tax has the added advantage that it will provide an incentive for the public to become more liberty minded and will encourage new public cries for a society that is freedom oriented.
2. Fair Tax is Currently Sponsored by About 70 Congressmen and 8 Senators.
Ron Paul said that he would not co-sponsor it, but he would vote for it if he had the chance. There is more support for Fair Tax in Washington than any other tax proposal. However, if the President chooses something other than the Fair Tax, his party would probably fall in line with his tax system and it would probably be vastly more abusive and unfair than the H.R. 25.
3. Fair Tax Would Eliminate the IRS, the Income Tax, and the Sixteenth Amendment.
When you read the legislation (see the Thomas Link Below), you will see that it's purpose is clear and the idea is simple. Each state would collect a revenue neutral sales tax. It would eliminate income tax games, lobbying, and IRS abuse. Individuals would not have to continue to waste their time and money to preserve old, useless records. And there would be no more IRS threats and possible jail sentences for individuals. Businesses would still have to collect a sales tax, but it would be easier and less abusive than the income tax.
4. H.R. 25 is a Tax Bill - Not A Budget.
We already know that Congress does not pass balanced, limited, or useful budgets. That is a separate issue. Fair Tax is a method to fund the budget AFTER Congress spends the money. They will always get their money unless they miraculously come up with a budget that does not require funding. Fair Tax just determines how they will collect (steal) that money.
5. Economic Research For Fair Tax was Privately Funded By Consumers Like You and Me.
Over twenty million dollars in consumer money was donated to conduct the research that is currently being used to promote the Fair Tax. It is well funded, well thought out, expertly documented, approved by over eight economists, and the best consumer oriented tax method available.
6. Fair Tax Would Collect Money From the Underground Economy AND the 47% Who do Not Owe IRS Taxes.
Perhaps no one knows the size of the underground economy from drug dealers, illegal aliens, income tax cheaters, and other “under the table” producers. Some researchers have predicted that these hidden transactions add up to 50% of the size of the known economy. In addition, the known 47% who do not pay income taxes would have to pay the sales tax every time they make a purchase. Fair Tax consumption taxes collected by each state would have to be paid by these people to survive, even if they pursued a few underground transactions with the sales tax. This would be tax money that the IRS does not receive. The extra collections would reduce the amount of money that everyone else pays.
7. Congress Can Raise The Fair Tax Rate Any Time They Wish.
And they can raise the income tax rate or any taxes any time they wish. The beauty about the Fair Tax is that it is transparent. Every receipt would itemize the exact amount of Fair Tax being paid each time a consumer makes a purchase. Taxes would no longer be hidden and the consumer would be constantly reminded that the government is stealing from them. This might bring new liberty lovers into the political realm due to the rage it would create.
8. The Poor Would Not Have To Pay Taxes On Food and Necessities.
The major objection to the Fair Tax is that the poor would be given a heavier burden than they have under the income tax. This is not true. The Fair Tax includes a provision that would provide a grant for basic necessities. This provision of the Fair Tax is the least popular by idealists but it is the only way to prevent poor people from suffering from a regressive tax. And it is the only way to make the Fair Tax (or any tax) politically possible.
9. The Fair Tax IS Constitutional – The Income Tax is NOT Constitutional.
Fair Tax is an indirect excise tax. Section 8, Clause 1 permits a uniform tax such as the Fair tax. The complaints about the Constitution should be directed to the spending and budget, not to the Fair Tax.
Once again, no tax is Fair. But we will have a tax whether we like it or not. So, why not fight for a tax that will promote liberty, obey the constitution, and eliminate IRS tyranny?
Follow the Links Below To Learn More About The Fair Tax:
Discussion on the Constitutionality of Fair Tax by Karen Walby, Ph.D. :
Article By Leo Linback, Founder of Fair Tax:
The Only Tax Replacement Plan Backed By Eighty Economists:
Official Fair Tax Site:
Library Of Congress – Thomas- Official Fair Tax Bill”