Tuesday, October 19, 2004

Fair shake for the Fair Tax

"As a nonpartisan group forwarding a well-researched full replacement for income and Social Security taxation, we are appalled to discover the Democratic Congressional Committee's series of mailings misrepresenting our legislation, targeted for congressional races where the Republican challenger appears to be winning," said FairTax.org Executive Director Tom Wright.  "They have twisted the truth about our bill and launched a national, partisan attack on our progressive national retail sales tax - the FairTax.  This follows millions of dollars in misleading TV ads in several states, and most recently thousands of our members and the American public were subjected to potentially hundreds of thousands of dollars in 'push polls' against a national sales tax."

A series of mailings are scheduled to begin this week, funded by the DCCC on the bipartisan FairTax Bill, HR25/S 1493.  These mailings are chock full of misrepresentations, falsehoods, and lies about the national sales tax. 

Therefore, it is now time to provide some facts and the truth on the FairTax.

The FairTax ends federal paycheck deductions of all kinds; the workingman or woman gets a full paycheck.  The plan is a total replacement for all income and Social Security taxes:  Personal, gift, estate, capital gains, alternative minimum, earned income tax credit, Social Security, Medicare, self-employment, and corporate taxes.  The FairTax virtually eliminates the IRS.

The FairTax plan is revenue neutral; it neither raises nor lowers taxes.  The rate is set to raise the same revenue the replaced taxes raise today.  For most taxpayers, that is a zero sum game, neither raising nor lowering their taxes.  As an organization, we wish to remove ourselves from battles over tax hikes or cuts, special interests, winners and losers.  While the FairTax will make federal taxes very, very obvious (and easy for taxpayers to control themselves), there is no intention to give large groups any break over what they are paying now, nor to burden another group. 

The FairTax is a progressive tax. 

Only the biggest spenders pay the maximum rate; those at or below the poverty level pay an honest and transparent nothing.

No one living at or under the poverty level as determined the by the Department of Health & Human Services will pay any federal tax (hidden or obvious) on any of their spending.  Today our working poor are burdened with the most regressive tax of all, Social Security, which they pay with every paycheck their entire working lives.  The FairTax ends that.

The FairTax does not raise costs, since it does not raise taxes.

According to Dale Jorgenson, Harvard economics professor, people on fixed income (and every other consumer in America) pay an average of 22 percent in hidden corporate taxes and compliance costs with every good they buy.  Hidden taxes on services average 25 percent.  The FairTax ends this.  Competition is going to force the prices on goods and services to come down once the providers of these goods and services find that they can purchase them at lower prices.  The FairTax does not tax used goods.  And finally, a rebate zeros the tax up to the poverty level.  

For more on the national sales tax please visit us at www.fairtax.org or call



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