Are you ready to graduate? Are you working part-time to get through school? Are you borrowing funds to get through school?
Now you can join the real world...let me introduce you to the IRS. 60,000 plus pages of codes and over 18,000 addendums all designed to get the greatest possible amount of your earnings for the federal government. Over a million words designed in such a manner that if you had your taxes figured by 25 IRS agents, chances are you would get 25 different totals for the amount due.
You will be part of a nation that will pay $280 million each year just to figure and file your tax obligations. Meanwhile, $400 to $500 billion is spent by businesses to comply with the complexities of the codes each year. The elimination of that one expense would have the same effect as a $4 trillion tax cut. As the US goes deeper and deeper into debt, it is time to look hard and fast for a solution to the battles of higher taxes on everything possible. Such a solution does exist. It is called the Fair Tax, a simple 133 page bill in the Congress that will replace the present broken system. It stops the taxing of production and capital and switches to taxing consumption. More than 130 countries today successfully tax consumption. And within the U.S., the 2nd and 4th largest state economies exist on a consumption tax; they are Texas and Florida respectively.
Under our current tax system, the top 1% of all income earners account for 19% of total earnings and pay over 33% of all taxes collected. The top 5% of income earners account for one third of all earnings and pay near 57% of the total taxes collected. The bottom 50% of earners collect about 13% of income and pay about 3% of the taxes collected.
Under the new Fair Tax, there would be no income taxes. You would receive 100 % of your pay check, which would amount to roughly 25% gain in the amount of your money that you will have access to. The new Fair Tax system will eliminate the following taxes: payroll, SSI, Medicare, income, ATM, corporate, business, capital gains, and estate. To supplement for the revenue of those taxes, a 23% consumer retail tax on new goods and services will be included in the retail price.
Goods and services are likely to cost less as the producers will not have to pay any taxes on those items in production. Those taxes which are called embedded because you don't see them range from 15% to 30% of the retail price you now pay. The average of most consumer goods is accepted at 22%. But remember, you will have your payroll check in hand with no federal deductions. That should give you a minimum of 22% increase in your take home pay to spend or save. Imagine every retail purchase by illegal aliens, shadow economies, illegal cash operators and foreign visitors will pay the tax. Money we now miss.
How about the poor? Without spending two more paragraphs on this issue, let it suffice to say that a system will be in play where every person, legally in the United States with a valid social security number, will receive a prebate or advanced rebate if you will, to cover the sales taxes on purchases made for the necessities of life up to the poverty level as computed by the government each year. Yes, everybody receives the prebate, that is why it is called the Fair Tax.
Finally, with the inception of the Fair Tax, the $12 trillion in offshore accounts to avoid taxes would begin drifting home and remain tax free. Manufacturing jobs sent overseas would return with no taxes on production. Secretary Snow and former Federal Reserve Chairman Alan Greenspan have stated, "If we were the only nation in the world with no tax component in its price system, jobs and capital would flow into the country".
The last time the tax system was overhauled was in 1986 and the 18,000 addendums have added to the confusion. Congress is considering adding billions to an already too costly system. Enough is enough. Get familiar with the Fair Tax. Go online to the site: fairtax.org. Contact one of the local leaders.
It is YOUR money, YOUR family and YOUR future.