COMMENTARY | The Fair Tax Act is not a new concept but it is one that has gathered steam over the last two weeks. Since April 15, talk of a national sales tax has taken center stage and those with everything to lose have been attempting to stem the tide of a realistic and attainable goal of eliminating the IRS and income tax as we know it.
The concept is simple. Tax everyone equally across the board. The use of a national sales tax will be based on products we use every day. It will be a consumption tax. The more a consumer spends the more tax they will pay. A consumption tax such as the Fair Tax would take taxes on 23 percent of the purchase price.
Workers would receive their money up front when getting paid because there would no longer be a federal tax taken out of their check. All government programs would also be paid for using the Fair Tax. This will be help drive the consumer market and it will also lead to Americans actually saving money instead of spending and borrowing.
The Fair Tax will also deal with the issue of undocumented workers. Those workers will now be paying their taxes just like everyone else in the United States. As with any sweeping change within the government, many Americans are hesitant to back the Fair Tax for fear of the unknown.
Radio talk show host and well respected finance expert Dave Ramsey is in support of the Fair Tax as well. Ramsey gave the best explanation in simple form when he answered a question from a listener on the matter in his Town Hall column.
Ramsey is just one of many respected experts in the field of finance that have extolled the virtues of the Fair Tax. With the Fair Tax politics will be cleaned up and unnecessary spending would be a thing of the past. It is foolish to think the system would be perfect but if we do not take this step now the old system may collapse in the near future.
The Fair Tax is a simple and fair way to end all loopholes that are currently being taken advantage of by major corporations in the United States. Some major corporations employ hundreds of tax lawyers to take advantage of the antiquated and unfair United States tax code.
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