Libertarian Tax Plan. FairTax. IRS IS GONE!

The FairTax plan wasn't written by Libertarians but the Libertarian Party is the only party wanting to implement it. Over 150 congressmen and women (non-libertarins) have voted for it already.




The FairTax is a proposal to https://en.wikipedia.org/wiki/Tax_reform the federal tax code of the United States. It would replace all https://en.wikipedia.org/wiki/Income_tax_in_the_United_State (including the https://en.wikipedia.org/wiki/Alternative_minimum_tax, https://en.wikipedia.org/wiki/Corporate_tax_in_the_United_St, and https://en.wikipedia.org/wiki/Capital_gains_tax_in_the_Unite), https://en.wikipedia.org/wiki/Payroll_tax#United_States (including https://en.wikipedia.org/wiki/Federal_Insurance_Contribution), https://en.wikipedia.org/wiki/Gift_tax, and https://en.wikipedia.org/wiki/Estate_tax_in_the_United_State with a single broad national https://en.wikipedia.org/wiki/Consumption_taxon retail sales. The Fair Tax Act would apply a tax, once, at the point of purchase on all new https://en.wikipedia.org/wiki/Good_(economics) and https://en.wikipedia.org/wiki/Service_(economics) for personal consumption. The proposal also calls for a monthly payment to all https://en.wikipedia.org/wiki/Family https://en.wikipedia.org/wiki/Household of lawful U.S. residents as an advance rebate, or "prebate", of tax on purchases up to the poverty level.https://en.wikipedia.org/wiki/FairTax#cite_note-billc3-1https://en.wikipedia.org/wiki/FairTax#cite_note-Kotlikoff-2 First introduced into the https://en.wikipedia.org/wiki/United_States_Congress in 1999, a number of congressional committees have heard testimony on the https://en.wikipedia.org/wiki/Bill_(proposed_law); however, it has not moved from committee and has yet to have any effect on the tax system. In recent years, a tax reform movement has formed behind the FairTax proposal.https://en.wikipedia.org/wiki/FairTax#cite_note-movement-3 Attention increased after https://en.wikipedia.org/wiki/Talk_radiopersonality https://en.wikipedia.org/wiki/Neal_Boortz and https://en.wikipedia.org/wiki/Georgia_(U.S._state) Congressman https://en.wikipedia.org/wiki/John_Linder published https://en.wikipedia.org/wiki/The_FairTax_Book in 2005 and additional visibility was gained in the https://en.wikipedia.org/wiki/United_States_presidential_ele.

As defined in the proposed legislation, the tax rate is 23% for the first year. This percentage is based on the total amount paid including the tax ($23 out of every $100 spent in total). This would be equivalent to a 30% traditional https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_Stat ($23 on top of every $77 spent—$100 total).https://en.wikipedia.org/wiki/FairTax#cite_note-money-4 The rate would automatically adjust annually based on federal receipts in the previous fiscal year.https://en.wikipedia.org/wiki/FairTax#cite_note-billc1-5 With the rebate taken into consideration, the FairTax would be https://en.wikipedia.org/wiki/Progressive_tax on https://en.wikipedia.org/wiki/Consumption_(economics),https://en.wikipedia.org/wiki/FairTax#cite_note-Kotlikoff-2 but would also be https://en.wikipedia.org/wiki/Regressive_tax on https://en.wikipedia.org/wiki/Income at higher income levels (as consumption falls as a percentage of income).https://en.wikipedia.org/wiki/FairTax#cite_note-wgale-6https://en.wikipedia.org/wiki/FairTax#cite_note-BHItaxburden-7 Opponents argue this would accordingly decrease the https://en.wikipedia.org/wiki/Tax_incidence on https://en.wikipedia.org/wiki/American_upper_class and increase it on the https://en.wikipedia.org/wiki/American_middle_class.https:// Supporters contend that the plan would effectively tax https://en.wikipedia.org/wiki/Wealth, increase https://en.wikipedia.org/wiki/Purchasing_powerhttps://en.wik and decrease tax burdens by broadening the tax base.

The plan's supporters state that a consumption tax would increase https://en.wikipedia.org/wiki/Saving_(money) and https://en.wikipedia.org/wiki/Investment, ease https://en.wikipedia.org/wiki/Compliance_cost and increase https://en.wikipedia.org/wiki/Economic_growth, increase incentives for https://en.wikipedia.org/wiki/International_business to locate in the US and increase US competitiveness in https://en.wikipedia.org/wiki/International_trade.https://en The plan is intended to increase cost transparency for funding the federal government. Supporters believe it would increase https://en.wikipedia.org/wiki/Civil_liberties_of_the_United_, benefit the https://en.wikipedia.org/wiki/Natural_environment and effectively tax https://en.wikipedia.org/wiki/Crime and https://en.wikipedia.org/wiki/Illegal_immigration_to_the_Uni Opponents contend that a consumption tax of this size would be extremely difficult to collect, and would lead to pervasive https://en.wikipedia.org/wiki/Tax_evasion.https://en.wikiped They also argue that the proposed sales tax rate would raise less revenue than the current tax system, leading to an increased https://en.wikipedia.org/wiki/Budget_deficit.https://en.wiki Other concerns include the proposed repeal of the https://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_Uni, removal of https://en.wikipedia.org/wiki/Tax_deduction incentives, transition effects on after-tax savings, incentives on credit use and the loss of tax advantages to https://en.wikipedia.org/wiki/Municipal_bond.

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By: The World is a Vampire (2044.30)

Tags: libertarian, tax, plan, gary, johnson, coke. analogy

Location: Kubinka, Moscow Oblast, Russia

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