I heard on the radio today that the IRS was spending around 3 Billion dollars to bring tax cheaters into compliance with the income tax. Can you imagine what our country could do with that 3 Billion dollars if they didn't have to chase tax dodgers? I think it's time for a change, don't you?
I am copying a letter written by Jim Bennett, a FairTax volunteer. It says a lot in few words:
To the editor of the Wall Street Journal:
Dear Editor, Several comments sent in by readers and appearing in the December 31, 2007 issue call for a response. Retirees who pay sales tax during their golden years for the most part contributed tax-free into IRA's and now under the Fair Tax will be able to withdraw from their IRA's tax-free.
Their Social Security benefits,on which they were double-taxed going in (yes, income and payroll) will be tax free coming out. The Fair Tax will stabilize the tax base for Social Security, whose future is in peril today because of the dwindling payroll base relative to burgeoning retirees.
Seniors will be able to sell their homes free of capital gains tax and pass their estates onto their children tax free. Even if it is true that crime figures and illegal aliens would pay little more under the Fair Tax, would it not be beneficial to shift the tax burden towards these types and away from business?
The fact is that crime figures would have the same purchasing power butnow would pay tax on their purchases. Crime figures and illegal aliens, together with foreign tourists, purchasers of imports and those who go into the corpus of savings would be more disadvantaged than lower and middle-income people as a group.
Wealthy people do benefit from the Fair Tax, as does everyone else, but lower-income people benefit disproportionately. A sales tax such as the Fair Tax is far more efficient to collect than an income tax. Collection points drop from 155 million to 20 million.
Furthermore, it takes two to cheat on a sales tax, and just one to cheat on an income tax. I welcome the attention the Fair Tax is garnering now from the Wall Street Journal.~Jim Bennett
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Happy New Year, Bobbie and family! Thanks for your tenacity in keeping this resource going.
During this prelude holiday to the Iowa Caucuses coming up Thursday, Romney has viciously attacked the pre-eminent FairTax candidate, Mike Huckabee.
Something that every voter should know about Mitt Romney (and his lack of motivation for permanent tax reform): While at Bain Capital, Mr. Romney used offshore corporations (and continues to) in order to avoid U.S. taxation, and he fee-milked acquired businesses before firing workers and taking them into bankruptcy, to amass his great $250,000,000 wealth. (I have heard nothing about this until I discovered it quite by accident this evening.)
So, when you compare how Mr. Huckabee's visionary FairTax advocacy compares to Romney's interest in the current tax system, it's pretty easy to see who will lead us out of tax slavery - the $265 billion annual tax code compliance costs representing 5 billion wasted hours, annually.
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