Do you want to know why I support the FairTax? Check the various issues
below and see how the Income Tax, a Flat Tax, and the FairTax would affect each
FairTax – Proposes repeal.
Federal Income Tax – No change.
Flat Tax – No change.
FairTax – Individuals do not file. Businesses need only to
deal with sales tax returns.
Federal Income Tax – Very complex; 20,000 pages of regulations;
I.R.S. incorrect over half of the time.
Flat Tax – Withholding continues. Individuals and businesses
must still track income and file income tax forms.
FairTax – Record all business expenses and is subject to IRS
Federal Income Tax – Record all business expenses and is subject
to IRS audit? Yes.
Flat Tax – Record all business expenses and is subject to IRS
FairTax – 23% Linder/Peterson FairTax Act of 2001 (H.R. 25).
Employees receive 100% of pay. Social Security and Medicare funded from consumption
tax revenue, not your paycheck. (H.J.Res45) – Will repeal the 16th Amendment.
Federal Income Tax – Used by lobbyists and the wealthy for
tax-breaks and loopholes. Used by bureaucrats for social engineering.
Flat Tax – Rep. Armey?s H.R. 1040 has some problems, but is
far superior to current law.
Cost of Filing
FairTax – No personal forms are filed. Significant cost savings.
Federal Income Tax – $225 billion in annual compliance costs.
Flat Tax – Significant simplification costs are somewhat
FairTax – Un-taxes wages, savings, and investment. Increases
productivity. Produces significant economic growth.
Federal Income Tax – Taxes savings, labor, investment, and
productivity multiple times.
Flat Tax – Imposes a tax burden some of which is still hidden
in the price of goods and services.
FairTax – Taxpayers pay the same rate and control their liability.
Tax paid depends on lifestyle. All taxes are rebated on spending up to the poverty
Federal Income Tax – The current tax code violates the principle
of equality. Special rates for special circumstances violate the original Constitution
and are unfair.
Flat Tax – The flat tax is an improvement over the current
income tax, but it is still open to manipulation by special interests.
FairTax – Foreign companies are forced to compete on even terms
with U.S. companies for the first time in over 80 years.
Federal Income Tax – Current tax code places unfair tax burden
on U.S. exports and fails to neutralize tax advantages for imports.
Flat Tax – A flat tax taxes exported goods and does not tax
foreign imports to the U.S., creating unfair competition for U.S. manufacturers
FairTax – As the Founding Fathers intended, the FairTax does
not directly tax individuals.
Federal Income Tax – Current tax code requires massive files,
dossiers, audits, and collection activities.
Flat Tax – A flat tax still requires personal files, dossiers,
audits, and collection activities.
FairTax – 45 states now use a retail sales tax.
Federal Income Tax – The 1913 income tax has evolved into an
antiquated, unenforceable morass, with annual tax returns long enough to circle
Earth 28 times.
Flat Tax – A flat tax just won?t stay flat.
Starting out nearly flat in 1913, the income tax grew out of control with top rates
over 90% until the Kennedy administration.
FairTax – Reduces rates by an estimated 25-35 percent. Savings
and investment increase.
Federal Income Tax – Pushes rates up. Biased against savings
Flat Tax – Reduces rates 25-35 percent. Neutral toward savings
FairTax – Increases investment by U.S. citizens, attracts foreign
Federal Income Tax – Biased against savings and investment.
Flat Tax – Neutral toward savings and investment.
FairTax – Abolished.
Federal Income Tax – Retained.
Flat Tax – Retained with reduced role.
FairTax – Makes U.S. manufacturers more competitive against
overseas companies.Escalates creation of jobs by attracting foreign investment and
reducing tax bias against savings and investment.
Federal Income Tax – Hurts U.S. companies and decreases available
jobs. Payroll tax a direct tax on labor.
Flat Tax – Positive impact on jobs. Does not repeal payroll
tax on jobs.
Man-hours required for compliance
FairTax – Zero hours for individuals. Greatly reduced hours
Federal Income Tax – Over 5.4 billion hours per year.
Flat Tax – Reduced.
FairTax – Reduced tax rates and fewer filers will increase
Federal Income Tax – High tax rates, unfairness and high complexity
Flat Tax – Reduced tax rates and improved simplicity will improve
Personal and Corporate Income Taxes
FairTax – Both are abolished.
Federal Income Tax – Retained.
Flat Tax – Retained in a different form.
FairTax – Increases.
Federal Income Tax – Inhibits productivity.
Flat Tax – Increases.
FairTax – Increases savings.
Federal Income Tax – Decreases savings.
Flat Tax – Increases savings.
FairTax – The FairTax is highly visible and easy to understand.
No tax is withheld from paychecks.
Federal Income Tax – The current tax code is hidden, embedded
in prices, complex, and incomprehensible. Taxes are withheld from paychecks.
Flat Tax – The business component of the flat tax and payroll
taxes are hidden and would be embedded in prices. Taxes are withheld from paychecks.
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