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Say Goodbye to the Income Tax and the IRS

by Sandra Simmons

Here is a surefire way to eliminate the IRS and never be required to file another personal income tax return; or company tax return for that matter! Every dollar you earn you would get paid; no taxes withheld. You absolutely have the power to make this a reality!

There is a tax bill before Congress right now that would get rid of the IRS and eliminate corporate taxes, personal income taxes, estate taxes, the death tax, etc. It's called the FairTax Act and I am here to tell you it is not only fair, it would without a doubt solve our country's economic woes in short order. First I do want to say that The FairTax is violently resisted by an extremely vocal few exactly because it will do what it promises in getting rid of the IRS, the greater than $300 billion in tax return filing costs, and the blatant corruption of the current tax system. Here's a snapshot of what it is all about.

What is the FairTax?

The FairTax is a consumption tax that is charged when you purchase something new. It is a transparent tax: that means the tax will be on your receipt in plain view so you can see it.

Currently you are paying those taxes when you purchase something, but they are hidden in the cost of the item all along the manufacturing line from the raw materials to the packaged end product. These are called embedded taxes because they are not seen on your receipt. Under the FairTax Act, you would be paying the same price for a loaf of bread, but the loaf would have a lower shelf price and the tax would be added at the cash register and printed on your receipt.

Is the FairTax really fair?

Absolutely. The FairTax is very fair. In fact, it is really much more fair than the current income tax. You can control how much tax you pay simply by deciding which things you are going to purchase. The rich buy more expensive items that other individuals. The FairTax taxes them on these purchases.

Illegal aliens and tourists, who currently pay no taxes, would pay their fair share of taxes every time they buy something. Anyone who gets cash income and never reports it on their income tax return would now pay the consumption tax on that income when they spend it at the cash register. Yes, the government would continue to get as much tax revenue as they currently get, but it would cost us a lot less to run the government.

The FairTax would have a very positive effect onAmerica's economy.

With the penalty for working harder and producing more removed, American companies will experience a new wave of expansion and economic growth. Hidden taxes disappear, U.S. citizens can save more, and companies invest more. As proposed, the FairTax would bring U.S. companies back home as it would no longer be an advantage to have American companies in foreign countries hiring workers for low wages to do jobs that Americans should be doing here at home for fair wages.

Workers would bring home all that they earn.

It would put more money in the pockets of every American by eliminating the income tax. There would be no withholdings from what you earn to pay federal taxes, Social Security or Medicare. If you earned $100 you would get paid $100. Businesses would no longer be weighed down with paying additional taxes on their employees wages for Social Security/Medicare.

The FairTax has a positive effect on Social Security/Medicare.

Under the FairTax Act there would be plenty of money available for both these programs. Like all federal spending programs, Social Security would run exactly as it does today, with the exception that its funding would come from a consumption tax, instead of a payroll tax.

Companies that employ workers would continue to report the wages they pay to individual employees to the Social Security Administration only for the determination of benefits. The transition to a reformed Social Security system would be eased while ensuring there is sufficient funding to continue promised benefits.

The FairTax shields low-income and lower-middle-income families and individuals.

Under the FairTax Plan, people near poverty level pay zero net FairTax up to the poverty level! Every household receives a monthly prebate check that is equal to the FairTax paid on crucial goods and services [medicine and groceries], and every wage earner is no longer subject to the most oppressive tax of all, the payroll tax.

The FairTax takes careof senior citizens.

The fFairTax does a good job of protecting senior citizens. Low-income seniors are much better off under the FairTax than underthe current income tax system. There are some who mistakenly believe that people who live only on Social Security pay no taxes. Those people might not be aware of it, but they are paying the hidden corporate income taxes and employer payroll taxes whenever they buy anything. Under the FairTax, seniors pay $0.23 out of every dollar they choose to spend on new products. Plus, seniors, like everyone else, receive the monthly prebate check, in advance of making the purchases, for taxes paid on the cost of necessities.

Yes, The FairTax CAN really be passed into law! The FairTax has taken it upon itself to build a grassroots movement and grassroots alliances to support the effort. But, this will only happen when the American people rally behind the effort, throw off the yoke of income tax slavery, and demand that their congressional representatives correct 90 years of wrongs done by the income tax.

What you can do RIGHT NOW to ensure this bill gets passed.

First, go to the website FairTax.org and sign the petition to let Congress and the President know that you demand this bill gets passed into law. When visiting the FairTax website, view the congressional scorecard to find out if your state congressional representatives support this bill. If they are not a supporter or co-sponsor, write them a letter and demand they vote for this bill and that you will be monitoring this scorecard to see how they voted come election time.

Second, buy and read The FairTax Book: Saying Goodbye to the Income Tax and the IRS by Neal Boortz and Congressman John Linder. Read it so you understand what this bill actually says. The book is not difficult to understand. Then give it to a friend to read and ask them to pass it on, too.

Sandra Simmons, President of Money Management Solutions, has years of experience helping business owners and families manage their income to achieve their financial golas. To learn more about the Money Management Software she created, watch the FREE 5-minute demo video on her website at www.MoneyMgmtSolutions.com

Published April 15th, 2008

Filed in Business, Finance

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