I guess since I have nothing really to blog about today, this is a perfect time to talk about something that I feel very strongly about.
The FairTax Plan.
The FairTax bill would abolish all federal income taxes, death taxes, capital gains taxes, and payroll taxes and replace them with a national retail sales tax.
There would be a tax of 23% on all new goods and services. People would not need to file a tax return.
How does this affect families?
Each family would get a rebate of the sales tax equal to spending up to the federal poverty level. The rebate would be paid in advance and updated according to the Department of Health and Human Services poverty guidelines. Based on the 2003 guidelines, a family of four would be able to spend $24,240 annually tax free. They would receive a monthly rebate of $465 each and every month ($5,575 annually). Therefore, no family would pay tax on essential goods and services, and middle income families would be effectively exempt from tax on a large portion of their annual spending.
Why is the FairTax 'fair'?
The current tax code violates the principle of equality. Special rates for special circumstances violate the original Constitution and are unfair. Under the FairTax, all taxpayers would pay the same rate and control their liability through their spending. Tax paid would depend on the individual's chosen life style. Basically, the more you spend, the more tax you pay.
I think this would allow an individual to have more control, but still do the necessary contributions.
Unfortunately, based on how things are going right now... doesn't look like the big wigs are going to let this happen... :(
For more info
The FairTax calculator :Find out how much you could be saving