FairTax eliminates need for IRS
by DAVE BOONE
Jul 05, 2014 | 1051 views | 11 11 comments | 6 6 recommendations | email to a friend | print

According to a recent Fox News poll, an overwhelming majority (76 percent) of Americans think the Internal Revenue Service intentionally destroyed two years worth of emails.

This latest scandal would seem to be the final straw in a long line of IRS abuses going back many administrations, both Democratic and Republican. Why do we tolerate this situation, when there is a simple alternative?

The FairTax is a national sales tax that satisfies the principles of tax policy far better on every count than the current income tax:

It’s simpler, noninvasive, efficient, stable, visible, neutral, encourages economic growth, is broad-based, treats everyone equally and is constitutional

In addition, the FairTax removes the need for an IRS. The tax would be collected by the states, with no concern for income.

President John F. Kennedy said, “The largest single barrier to full employment of our manpower ... and a higher rate of economic growth is ... federal income taxes.”

If you are a person who prefers solutions to merely complaining, start asking around about the FairTax.

Chances are you have a friend, family member or neighbor who knows about it. For more information, go to www.fairtax.org.

Comments
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StephenC.
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July 07, 2014
This article is yet another example of deceptive FT marketing.

There certainly WILL be a need for an "IRS" - under the FT it is called the STAA and it may audit consumers as well as sellers.

Even more importantly, the FT will facilitate Congress' enactment of a NEW Income Tax, bringing back today's IRS. (The 16th Amendment will not be repealed anythinme soon and Congress will repeal the FT's laughable "Sunset Clause".

Chuck Burns
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July 07, 2014
Deceptive? How about down right lies. Not one thing you wrote id true. There is no need for the IRS under the Fair Tax and WTF is the staa?

HR25 is the Fair Tax bill and it gives law makers 7 years to repeal the 16th amendment.

Read the book, it is shoet and to the point. And read HE25 it is the Fair Tax bill.
StephenC.
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July 08, 2014
Reply to Chuck Burns,

FYI, as a retired tax pro, I have studied the FT EXTENSIVELY (including "the book" which is nothing but sales hype), apply all of my training and experience. It is YOU who neeeds to learn about what the FT is REALLY all about.

The STAA is the Sales Tax Administration Authority, which is the FEDERAL agency res[ponsible for administering this FEDERAL TAX (Treasury will appoint some States to act AS AGENT OF, AND UNDER THE OVERALL DIRECTION OF, THE FEDERAL GOVT). You need to READ the statute.

You will also learn that CONSUMERS are liable to pay the FT which they can avoid by receiving a receipt for such payment. IMHO, the STAA MUST audit CONSUMERS in order to limit massive evasion.

Also, such auditing is required to establish tha a consumer qualifies for the exemption for USED GOODS (which most will NOT be able to do).

You cannot be that naive. Congress will surely repeal that silly 7 ear "Sunset Clause".

Amerigo M Cimino
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July 05, 2014
What are the faults of the Fair Tax? I can see NONE! Every person who buys anything will be a participant! EVERY service will also be taxed! All at a standard rate of 23%. We the consumers, are already paying 22% in embedded taxes; Those taxes will disappear! also think of the mountain of paperwork involved with the Income Tax! There are NO theatratrics with the Fair Tax, it is a SIMPLE sales tax! The State of Florida is funded with a Fair Tax! No Favorites; NO nepotism; No Race or Color! No immunity! Best of all; NO Income Tax! April 15th, will become a National Holiday! Also; many government "Workers"; will lose their "jobs"; and become producers instead of dependents. How good is that? The Fair Tax is not complicated; it is a very simple, straight forward sales tax; Period! Government Employees do NOT like the fair Tax! NO WONDER! How about not needing any receipts? You buy; pay the tax, nod it's over! You would only need a receipt, if there is a warranty, and government is NOT involved! Attn.: Mark Curran!

rohl withit
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July 06, 2014
I love these arguments about Government having to pay taxes that they are paying now. FairTax H.R. 25 is a replacement for the taxes the Government (and every one else who currently pay Income tax or pay roll tax) pays now. These people always seem to forget that every one who receives a pay check is currently paying , in advance, before they get their money! Oh , and that includes Government employees. Fair tax changes that to, when you spend your money, and only on items that have never been tax previously. Currently you pay on EVERY thing.
Dutchman3
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July 06, 2014
Amerigo, you see none because you aren't looking--just repeating Fairtax marketing baloney! For instance, the real rate is 60% when taking into account that federal government taxation of State and Local governments is inappropriate, and that the rate calculations used by AFFT do not account for illegal evasion and legal avoidance.

Also consider that that 22% in embedded taxes will not go away unless we all take a huge hit on our take home pay. There is no free lunch!
StephenC.
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July 07, 2014
Amerigo,

Its a shame that you have no understanding of how the FT really works.

Poor people do NOT participate (they pay ZERO tax AND get a big tax welfare check).

As Dutchman (and Harvard professor Jorgenson, who was hored by AFFT said) most of the supposed price reduction will NOT occur because people will get their old GROSS pay not theirt old NET pay.

A 5% FL sales tax on 1/2 the things you buy may work, but a 35-45% tax on EVERYTHING you buy (PLUS a bunch of other HIDDEN TAXES) will destroy our economy.

You may well need to keep all of those receipts for consumer audits by the STAA.
Mark Curran
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July 05, 2014
We need a new tax code but Fairtax is not even a tax code. It's political theater.

I LOVED Fairtax when I first heard of it, then I asked some questions, read the fine print, and asked to see some of that "research"

For years now I offered-- and still do - 50,000 dollars if anyone (even you) can s how 1 page of that 22 million dollars of "research" about this "very very simple" personal retail sales tax to replace all other fed taxes.

They claim 22 million dollars of research, but they don't have 22 cents worth. No, they do not. What they have is stuff from their own public relations firm, and that is NOT, NOT NOT a simple retail sales tax.

What is in their public relations firm documents (and it's NOT research) are massive goofy taxes that have nothing whatsoever to do with personal retail sales tax.

Yes, they have a retail sales tax. But that's just part of it. In the fine print are far larger taxes you pay, like huge (over 1 trillion) dollars of taxes on wage, pension and capital investment "expenditures". Your city county and state have to pay taxes on wage and pension and operational expenditures. That's the biggest source of revenue -- these OTHER taxes they have in the fine print to make their math add up.

Without these massive other taxes -- and I've only mentioned a few -- the tax rate would be 89% not 23%. Try to grasp that. A retail sales tax-- only la retail sales tax --would need to be 89%.

Fairtax has no research ---- not about a simple personal retail sales tax. I mean they have NONE. Not a post it note, nothing.

Im not sure who is paying for the propagation of misinformation -- for the private jets, huge buses. I wish I knew. I don't know who paid their public relations firm to put out the great sounding bs, but then hide the massive other taxes in the fine print.

But Fairtax is not supposed to pass, they know very well that they can not tax all city county and states for over a trillion dollars. Plus there are many more absurdities in the fine print. They know all that, because they put it there.

We need a new tax code --but it won't be easy for two reasons 1) everyone wants others to pay, not them 2) people are so easily fooled by slick double talk, and Fairtax is an example
Hank Van Gieson
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July 05, 2014
David, your assumption that the States will act as the federal tax collector is badly flawed. No one has ever asked the States if they would do so, and all 50 State Governors, through the National Governors Association, are opposed to any sort of national consumption tax.

Check it out!
Mark DC
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July 05, 2014
Hank, you are missing the telephone pole in your eye, and talking about the piece of dust in it.

COLLECTING the tax? Hilarious. Do you know - please tell me -- about the massive taxes on all pension wages and capital investments "expended" by the states.

Do you know it or not? Do you know that if California "expends" 10 billion dollars on capital investments, it is liable for 2.3 Billion tax in ADVANCE. That's right, IN ADVANCE.

So you complain about if they were asked to COLLECT it? Hilarious. They are not even told about the taxes they would have to pay!!

Yes, Hank, states would collect the personal retail sales tax, but Hank, they would have to PAY the wage, pension and capital expenditure taxes.

Do you know of those taxes?

These other taxes, by the way, make their math add up on paper, which is why they have them., The retail sales tax part is the small part of Fairtax.

Dutchman3
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July 07, 2014
Mark,

When someone asks a question, I believe in answering it without launching off in other unrelated areas. I think I understand exactly what State and Local governments may have to pay under the Fairtax. I just don't happen to believe that the Courts will ever allow the federal government to lay a sales tax directly on State/Local government consumption. Last time I checked, we are still a constitutional Republic consisting of two sovereign government powers, Federal and State. You need to understand that sovereign powers can not tax each other without the consent of both. And, the States are not going to hold still for the federal taxation envisioned under the Fairtax.

By the way, your claim that retail sales are only a small part of the Fairtax scheme does not seem to be accurate. Recent data shows that retail sales amounted to around $9 trillion annually consisting of $5T in services, $2T in durable goods and $2T in non durables. Against a sales tax base of $11T, it looks to me that the vast majority is indeed retail sales taxes, not government consumption. What say you?