Everyone; just imagine getting your whole paycheck [no federal income or FICA deductions] every pay period; and, you decide how much federal tax you pay and when? FairTax does this for all of us. It’s much simpler and fairer than the 77,000 page federal income tax code it replaces. FairTax eliminates the IRS. Today, let’s take a first look:
The FairTax proposal in Congress now, HR 25, is a serious thoughtful plan to replace: 1) federal income, 2) payroll, 3) personal, 4) gift, 5) estate, 6) capital gains, 7) alternative minimum, 8) Social Security/Medicare, 9) self-employment, and 10) corporate taxes. Yes, REPLACES them all.
Advantage number 1: Americans take home their whole paychecks.
Not only will more of us have jobs, but we will also take home 100 percent of our paychecks (less state income tax). No federal income or payroll taxes are withheld from paychecks, pensions, or Social Security checks. Next month: How the prebate completely un-taxes the poor’s [and everyone else’s] spending up to the poverty level.
Sneak a peek: Two page FairTax overview, link here:
Ward Atcher lives in Decatur, Alabama.