The Pros And Cons Of The Fairtax Act

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Many debates have been waged over the decades on what will be taxed, on who shall be taxed and how taxes are collected. Since the 16th Amendment was ratified in 1913, the debate has intensified, centering on how high to make the income tax rate. Most Americans were not concerned since the Amendment was sold to them as something that would only affect corporations and the rich. With ever increasing fervor these corporations created lobbyists to convince Congress to exempt them from some or all of the income tax. The big breakthrough in this was taxing the worker directly with payroll taxes during World War II. This method of collecting income tax was sold to Americans as temporary, but Congress has extended it indefinitely and the public has become used to it. The next few decades saw the debate revolve around creating tax breaks for individuals in an attempt to modify behavior or spending. This has resulted in over 67,000 pages of tax code and an entire industry devoted to tax compliance and evasion, with the unintended behavioral change of corporations and the rich parking their money outside of the United States in small island nations to avoid taxation. These offshore accounts are estimated to hold $10 trillion dollars, a number approximate to the national debt. The FairTax Act should be enacted because it eliminates all federal income taxes for individuals and corporations, eliminates all federal payroll withholding taxes, abolishes estate and capital gains taxes and repeals the 16th Amendment; thus eliminating the need for offshore accounts.
The FairTax Act will replace these costly, oppressively complex and economically inefficient taxes with a progressive national retail sales tax, which would be levied on the final sale ...

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..., while at the same time doing their best to heighten economic class warfare. The FairTax Act is not addressing anything other than tax collection and pointing out that the worker is already paying the brunt of the tax bill, the FairTax just lets the worker know exactly how he is taxed and by how much. More importantly the worker can choose how much tax to pay, giving them more power over government, a power balance that has been in favor of government since the 16th Amendment was adopted. The very advocates against this plan want government to maintain this overwhelming power over the citizens; it allows the politician to hand out favors and punishment in the form of tax cuts and increases. These same advocates preach equality while dividing the classes; it is this division of voting blocks that politicians can play to that will be eliminated with the FairTax Act.

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