The FairTax: A Bold Solution for a Better America
WASHINGTON, D.C. – Congressman Woodall (R-GA) spearheaded a Tax Day morning press conference calling on Americans to get the word out to their Representatives in Washington that they want bold tax reform solutions—not political gimmicks. Woodall, the primary sponsor of H.R. 25, The FairTax, along with many other FairTax co-sponsors from both the House and the Senate (S. 13), as well as the Presidents of the National Small Business Association and the National Taxpayers Union, made remarks in support of The FairTax as the solution to our nation’s broken tax code.
“H.R. 25, The FairTax, would repeal all federal corporate and personal income taxes, and replace them with a revenue-neutral personal consumption tax. Under the FairTax, hardworking Americans would take home 100 percent of their paychecks. On top of that, companies and consumers would no longer have to worry about the embedded taxes on labor and production. When that happens, these companies will take advantage of the world’s most productive workforce: the American workforce,” Woodall said.
The press conference happened during a week of heavy tax reform discussion on Capitol Hill. With America hearing so much about the President’s latest gimmick in the so-called “Buffett Rule,” Woodall and his colleagues gathered at the U.S. Capitol to focus on real and meaningful reform.
“Seventy percent of our income tax revenue comes from the top ten percent of earners. Nearly half the nation paid nothing in income tax, and in fact millions received a check instead. The President’s solution to this issue is to continue his politics of division by promoting this so-called ‘Buffett Rule’—a bill that will pay for less than 0.1 percent of the $47 trillion he proposes to spend in his 2013 budget proposal,” Woodall said.
He continued, “The purpose of our tax code should be to collect revenue to run the government—not use it as a tool to pick winners and losers, manipulate consumer behavior, and shape economic outcomes. Our solution takes this destructive tool out of the hands of the federal government and allows every American to become a voluntary taxpayer.”
Georgia Senators Saxby Chambliss and Johnny Isakson, as well Georgia Representatives Tom Price and Phil Gingrey attended the event.
“I’m honored to have the support of my Georgia colleagues and I thank them for taking time out of their busy schedules to advocate for bold solutions,” Woodall said.
“It’s time to stop arguing over the minutia and start making the bold decisions Americans sent us here to make. There is something to be said for making small steps toward progress. However, when it comes to overhauling America’s tax code, I think we need bold steps and we need them quickly. Pass the FairTax today and we’ll start seeing results tomorrow.”
Both the House and Senate versions of The FairTax have the most co-sponsors of any other fundamental tax reform bill currently in Congress. Last year it received a full hearing from the House Ways and Means Committee and has been included in the FY2012 House-passed Budget Report.
Nicholas
11:55 am on Wednesday, April 18, 2012
The "Fair Tax" may seem appealing at face value, but only because Congressman Woodall bases this on a demonstrable lie. The proposal is to replace FICA with a sales tax added to all taxable goods and services. It does not, however, replace state or local income taxes, nor does it replace medicare or social security taxes. (The proponents of the fair tax would argue that they would do away with social security and medicare, but ultimately you will be responsible for paying for health care and living expenses when you retire whether you pay it now in taxes or later from savings) Therefore, even with the "Fair Tax" you would not take home 100% of your paycheck. In fact, most Americans would take no more (or perhaps even less, when write offs such as mortgage interest and children are accounted for) than they do now. A common talking point is that 50% of Americans pay no taxes. This is obviously untrue - what they mean is 50% of Americans pay no FICA tax, which may be true. People who pay no FICA tax now because they get it back at the end of the year would, granted, take home more money each week, but then receive no check from the IRS when they file their taxes at the end of the year.
Instead a tax of 28% would be levied, in addition to your state and local sales taxes. This means your car payment goes up by 28%, your grocery bills go up by 28%, and any other item you purchase goes up by 28%. Would this make you more or less likely to eat out, buy a new car, etc.?
Daar Fisher
3:16 pm on Thursday, April 19, 2012
The FairTax bill is revenue-neutral, which means: We're payin' it now! This plan doesn't change the amount collected, only HOW it is collected. In the process of doing that, it (1) removes an incredible amount of (growing) complexity, makes our actual tax load VISIBLE (not hidden in prices, such as it is now, which is a hidden tax that WE end up paying, and places our exports at a disadvantage, because payroll tax obligations and compliance costs cannot be jettisoned prior to export, such as is done with imports coming from VAT countries), and every citizen is assured that "the more you spend (consume) at retail, above the poverty-level ceiling, the GREATER your EFFECTIVE tax rate will be." Now, if you're removing costs from businesses, making America a "tax free zone," that will increase profits, draw in competition, and squeeze price levels downward. The formerly-built-in taxes will be externalized. Thus, prices will in NO WAY rise in the manner you purport. For more on "FairTax fixes," see Facebook: http://www.facebook.com/groups/endclasswarfare/doc/244809798875615/
stephenarnold
6:03 pm on Thursday, April 19, 2012
Nicholas
It's apparent that you haven't looked at the research, or even a basic understanding of what the FairTax is about. Please take the time to look at www.fairtax.org and read up. I think after you see who has reviewed the research have to say and then you can post.
Steve
Duluth2
11:54 am on Thursday, April 19, 2012
FICA (Federal Insurance Contributions Act) funds social security and medicare. Your assertion that the proposal will replace FICA while not replacing medicare or social security taxes makes no sense.
The point of the "Fair Tax" is to make visible the taxes that are embedded in the price that you now pay for goods and services.
Daar Fisher
3:06 pm on Thursday, April 19, 2012
Everyone has an opinion. Taking three factors into account (1) our history with the income tax, and the tax code, and (2) the extensive research performed on the FairTax, and (3) the manner in which the tax system has been used to divide us, I'll stick with the FairTax. Those on Facebook can view a nice synopsis, here:
* Research Conclusions http://www.facebook.com/groups/endclasswarfare/doc/?id=244790505544211
K Wade
6:43 pm on Thursday, April 19, 2012
Stephen, Of course the fair tax web site is going to include information that puts the fair tax in the best light. I don't expect them to put out data against their own cause. Who are you to say who can post?