Talk:Fair Tax Act of 2007
Page could use some support/criticism (a criticism and commendations section), maybe in the form of floor speeches. Reintegration of the information below might be good, though it needs some work as it is very biased and it needs a source. There is also next to no introduction here- it needs one.--John Benton 10:33, 11 July 2007 (EDT)
Relocated
The following was relocated from the main article page Fair Tax Act of 2007 because it lack references. Artificial Intelligence 12:16, 13 May 2007 (EDT)
The Fair Tax is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The FairTax:
- Abolishes the IRS
- Closes all loopholes and brings fairness to taxation
- Ensures Social Security and Medicare funding
- Brings transparency and accountability to tax policy
- Allows American products to compete fairly
- Reimburses the tax on purchases of basic necessities
- Enables retirees to keep their entire pension
- Enables workers to keep their entire paycheck
The FairTax plan dramatically improves the economic environment for small businesses. It reduces compliance costs and tax burdens and improves bottom line profits.
Under the FairTax, the economy grows, more people have jobs, and incomes increase more rapidly with the FairTax. Among other benefits, retailers are more profitable under the FairTax and their compliance costs are lower.
Tax rate
The rate defined in the legislation is 23% (not 29%). Linder has stated this is an inclusive tax, to be included in the price of the product (like a VAT). So the tax is not added on at retail (like common state sales taxes) but included in the price and shown as a percentage of the total price. So while it is proper to show the reader how this translates to a common 30% rate, I don't think it is proper to state the rate is 29%, when the legislation specifically states 23%. It is also easier for comparison to the taxes it is replacing to present it as 23%, since this is how income taxes are calculated. Morphh 09:00, 2 December 2007 (EST)
