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In support of the Fair Tax Act
To the Editor:
Poverty should never be the goal of a government tax structure yet our income tax is designed to keep working people poor. Hidden corporate taxes raise the wholesale cost of goods and services while the 7.65 percent payroll tax ensures less take-home pay for buying goods and services.
Although the wealthiest avoids paying federal income taxes thanks to deductions, their investment capital needed for job creation is forced overseas to avoid capital gains taxes. Not only does the working poor get poorer and the wealthy shifts capital overseas, our industries can’t compete in global markets. Capital gains taxes are 11.5 percent higher than the average tax rate for the 34 nations in the Organization for Economic Cooperation and Development (OECD). And with our corporate tax being the highest in the world, there is little incentive for foreign investment to come to the U.S.
A consumption tax, The Fair Tax Act of 2013, filed in the House on Jan. 3 with a record number of first day co-sponsors (53), ends personal income taxes, business income taxes, payroll taxes, capital gains taxes, estate and gift taxes and alternative minimum tax. It generates equal tax revenues while creating jobs. I encourage you to learn more at fairtax.org.
Beverly Martin
Fulton
3 Comments
A record number of co-sponsors (53) out of 435 in Congress. You called that a record number? Before, they had 70 co-sponsors. This whole Fair Tax scheme is nothing but a GOP Tax Scam.
Henry – Why do you bother? In the first place, Beverly did not say 53 was a record for cosponsers ever, she said it was a record for cosponsors at the January introduction of the bill in the current (113th) session. You second error is to call names and politicize something which is completely non-partisan. It’s no fault of the Republicans if they understand economics while Democrats do not.
I suggest reading the fine print in Fairtax, like President Bush Tax Advisory Panel did, when they rejected Fairtax as, well they were polite about it, but showed that Fairtax fine print hid 2 trillion dollars in “other” taxes.
Fairtax is anything but a simple retail personal sales tax, like we were told. In the fine print, for example, are massive wage and pension expenditures taxes every city and county would have to pay. That’s right “Certain” wages — paid by “certain” employers are defined as taxable. Then in another section, taxable employers are defined. Then in another document, President Bush Tax Panel found Fairtax “assumes” all city county and states will pay this (and much more, Im being brief) and will “take necessary steps to raise their tax rates” to pay these huge other taxes.
In other words, Fairtax has massive other taxes, inserted into the fine print, in about 300 words. President Bush Tax Advisory Panel eats fine print tricks for breakfast, so they spotted the hustle. It’s in the definitions and tax revenue projects, aka tax base.
Learn what they hide- and ask yourself, why hide it?