Essay on The Fair Tax

Essay on The Fair Tax

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Taxes are unavoidable because government is needed and government operates on tax revenues. The FairTax is a tax-inclusive progressive national retail sales tax that replaces every other federal tax in America. The new national sales tax would be 23%. Although there have been some questions as to whether the sales tax rate is 23% or 30% and they stem from the meaning of tax-inclusive and tax exclusive. The sales tax in Florida is an example of an exclusive tax because it works of a preset base. If a person buys something for 1$ and pays a .30$ tax on it the sales tax is 30 percent because it is .30$ on the dollar. With the inclusive tax the item would cost 1.30 because the tax is included with the cost. The tax rate of 23% is calculated by dividing the tax paid by the total cost of the good or 1.30$/.30$ to get 23% of the cost as tax. The FairTax rate is inclusive so it reflects the rate of 23%.
The FairTax is a consumption tax, that will replace the income tax and eliminate the need for the Internal Revenue Service or (IRS) for short. The FairTax would eliminate self-employment taxes, death taxes, capital-gains taxes, corporate taxes and a lot of others and replace complicated regulations with a simple easy to collect sales tax. The tax would cause GDP to grow because without an income tax people will have more money to spend and the increased spending would fuel economic growth. The FairTax bill also has a provision that will issue a monthly “prebate” to nullify the tax on basic necessities like food. There will no longer be individual tax returns only businesses will pay taxes to the government with the tax money consumers pay. The compliance costs for the FairTax will be lower because of fewer collection points making less...


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... alternative minimum taxes. This tax will let the people become more active in government because under this tax they don’t have to pay for it. The FairTax helps create jobs because it gives people more money to spend increasing consumption and creating jobs which are desperately needed now. The repeal of these federal taxes will attract foreign investors to America to spend and help to grow the economy. Although many Americans are getting tax refunds around this time they are only getting the money they should have already had. The simple way to fund the government is much better than the complicated and confusing process of filing taxes. April 15th can just be another normal day for all of us, instead of one of the year’s most stressful days. As the FairTax gains support the United States is getting closer to the day when it says goodbye to April the 15th forever.

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