Category: Writers Block
introduction: Remember being at home and that very day your parents was dreading the day when they had to go file taxes and how they were not happy about all the amount of stupid paperwork or how they didn't understand it. That is one of the current problems in our country among many interesting problems, and the one ILl discuss here. I have heard about these taxes and they horrify me, and makes me unhappy. Their are of course Americans like that man who begged obama to raise taxes so he could pay more, and there's an easy solution to that, because our tax code is only a minimum. You can write that big check to the government and donate that way, because there is no maximum to how much tax you could pay. If you want to pay all of it to the money you earn to the federal government please feel free to go ahead. However, there are people like me, who is frustrated at the government for taxing a lot of people heavily and taxing what we earn as we get payed as if are pay was quite abundant or that we have that kind of money, I want to work hard and I don't want a cent of my money going to any organization without my consent.
credibility statement: I have been a great fan of the fairtax for a long time now, and have bhen studying it for about two years. I started of the book the fairtax book, then moved on to research it even more.
Thesis: I will be emphasizing to you today how the fairtax is far better than the income tax, and why our income tax system today badly needs replacing.
body preview: today, I will be discussing the history of the fairtax and how it is unlike the income tax, how it is not confusing like the income tax is, and what damage the fairtax won't make unlike the income tax.
I. The history of both tax systems.
1. The fairtax started in the 1990s in response to this current tax code not working for people.
2. according to Neal Boortz and John Linder in the book FairTax: The Truth, "It was a group of three men in Texas in 1995 whose thoughts first led them to the idea of the FairTax."
3. interest is picking up and there are more fans every day.
4. however the income tax bares a longer history and it always had widespread disapproval.
5. The fairtax book summarizes, "In 1861, Congress passed a bill assessing a 3 percent income tax on everyone earning between $600 and $10,000 a year. Six hundred dollars a year in 1861 would equal about $10,000 now. If you earned more than $10,000 (about $166,700 today), the rate went to 5 percent and a nice little inheritance tax was added to the mix,
The 1894 "act to reduce taxation" presented Americans with a 2 percent tax on everyone making more than $4,000 a year (the equivalent of $50,000 today).
an income tax was declared unconstitutional
ratified on February 12, 1913."
Ii. The confusion of the income tax and how the fairtax is much more simpler.
a. today we pay a bunch of taxes, however with the fairtax according to neal Boortz and John Linder in the fairtax book "The FairTax will repeal: The individual income tax The alternative minimum tax (AMT) Corporate and business income taxes Capital gains taxes Social Security taxes Medicare taxes (along with all other federal payroll taxes) The self-employment tax Estate taxes Gift taxes
2. It will be very much simplified according to the fairtax book "133-page tax reform bill" will replace according to the fairtax book "sixty thousand pages of IRS rules and regulation"
3. This code is so complex in a study quoted in the fairtax book "Of the forty-nine returns they received, no two were alike, and not one of them was correct."
4. Unfortunately government workers who work in that secter can't even understand their own code as the fairtax book again states "if you call the IRS help line to get help in preparing your return, the answer you get will be wrong more than half of the time."
5. In the fairtax you're not even tax on necessary items technically or old items according to the fairtax book "All of those lovely taxes will be replaced with a single-rate personal consumption tax--a simple sales tax--on new goods and services."
5. You get a prebate for the month so to replaces taxes for necessary things so no one has to go into poverty.
6. From fairtaxorg "If, as a business owner or farmer, you buy something for strictly business purposes (not for personal consumption), you pay no consumption tax."
Iii. Why the income tax is economic disastrous and how the fairtax is much safer.
1. according to fairtaxorg "20 percent or more of all retail prices" and you got some of us paying income taxes along with all sorts of other taxes on top. If you clear all that away and replace it with a 23 percent imbedded sales tax the sales tax is nearly the same, it won't make it more expensive, and you have to pay less because it doesn't tax what you earn.
2. according to the fairtax book "In 2003, the last year for which figures are available, the top 52 percent of all income earners paid virtually 100 percent of all personal income taxes collected by the Internal Revenue Service."
conclusion: Today, I have introduced you to the fairtax as contrast and compared to our income tax system, what the histories of them are, how confusing our current code is and how simple a code could be and how they would impact our nation. I hope you have learnt something and may read up on the fairtax and become a fan. Please feel free to go look at the actual documents and books about it, there's nothing to hide here, but there's a bit more as I couldn't possibly cover everything here, though I have cover much more about the fairtax then I could in this time frame on the income tax, which is so long it would take much much longer to explain if it doesn't end up going in circles and saying nothing first. It's not about conservatives or liberals, it's about a better way to deal with taxes. I hope, you take something away and my call to action is if you think we need a better way to do taxes don't hesitate to corner your representative and tell him how badly it is needed and how it is okay to vote for it. I hope, that I have made you step back and look at the tax codes a little bit. I hope you can look at our tax code in a different light and support something more fair, simple, and integrative.
Well written, just a bit of clean-up and it's ready for congriss! lol.
I agree with the idea of simpler taxes. The reason income taxes are so complex are all the loop holes and rebates and deducations, that shouldn't be there.
But we need muc more concrete ideas and figures on the pricse tax rates and how it would all work out.
Sales tax is 0 to 6 percent in most states .. you suggesting a flat value added tax of 20%? That would raise prices on consumer goods significantly, that would hurt low and middle income people the most, not really fair. I'd agree with 10% flat tax which is included in the price, I don't like the price system as it is, that goods are advertized without taxes and fees and all sorts of other additional payments, luring people into buying things whose price they under estimate.
Do away with deductions and child rebates and all that, in Europe the government will pay a fixed small amount of money per child to parents that is tax free, but this is completely separate from the tax system, and therefore does not complicate the returns.
Tax in stape, may be 10% on 50K 15 on 50 to 100 etc.
Employ value added tax, some sort of a business tax code does sound good, but it is very hard to monitor and easy to cheat on.
If I wanted a bunch of goodies, car, house, computers etc, I could just create a business that does nothing and have that buy those things to avoid paying taxes on it. It would cost money to monitor this, so instead just add value added tax on everyone in the production chain so there will be less of an incentive to cheat on this.
I never said how I felt about it;just stating how it was well written. This is the writer's block after all.
Lol, true, after all this is a work of fiction.
Written by a pup, who has yet to either own a business or file taxes, or all the rest of it.
We were all young and idealistic ... once.
Indeed we do need a revamp of the system, but too high a consumption tax is going to hurt the suppliers, as happened with other so-called luxury taxes in the past. The yacht tax only hurt yacht builders, because the rich simply stopped buying yachts.
Everyone agrees we need to rethink the situation. But rethink would involve what most people ddon't like: an assessment of all the data. While we do need to rethink how we're doing taxes, we could probably skip re-feeling about it.
i'd like to see some sort of consumption tax, if only that you tax everybody who drives on the roads, calls the police, etc., and that includes people who currently self-incorporate to maintain tax-free status.
There is also an entire industry (private, not government), of tax preparers, tax lawyers, etc. who will no doubt not appreciate their livelihoods being uprooted. This means government will have interfered with business by changing the tax laws. Should be like free day at the zoo, watching how the conservatives are going to piddle with that one.