By Ron VandenBoom
Imagine receiving a paycheck with no Federal Income Tax or Social Security deductions. Imagine getting an instant pay raise of 20, 30, or even 40 percent. Imagine not having to file federal income tax forms every April 15. Imagine the cost of everything you buy dropping in price 20 to 30 percent.
Sound unbelievable. Well rest assured such possibilities exist.
The Fair Tax Act of 1999, H.R. 2525, was introduced in Congress on July 14, by Rep. Collin Peterson (D. MN.) and Rep. John Linder (R. GA.). It would eliminate all Federal Income Taxes and Capital Gains Taxes. It would repeal all Social Security, Medicare, and Medicaid taxes and end all gift and estate taxes.
The income currently generated by these taxes would be replaced by a national sales tax of 23 percent on all goods and services and impose a rebate system that would return to the consumer a monthly check for all essential purchases like food and medicine. Persons falling below the poverty level are excluded from the system and would pay no taxes at all.
Does it sound too good to be true or does this proposition scare you?
Whichever be the case, you owe it to yourself to surf over to http://www.fairtax.org and check out the web site created to explain all of the details on how the new sales tax would work and how you would be affected.
The site is simple and even the amateur surfer will have no difficulty finding answers to questions. In fact, clicking on FAQ (frequently asked questions) will most likely cover most concerns in one quick stop.
According to the web site, the elimination of taxes on business, the elimination of taxes on their products, and the money they save by no longer being forced to fiddle with IRS red tape, would lower the cost of what they produce by more than the 23 percent tax.
In other words, if you currently pay $1 for a floppy disk, the price would drop to 70 cents. Even if you pay 23 percent sales tax the cost of the disk would still be 7 cents less than what you paid before.
The site also contains an extensive amount of research information on the effects of the Fair Tax on every segment of the population. It has been compiled by economists and experts in many fields and is very specific. Its a good place to look if youre concerned how the tax will affect things like agriculture, charities, or healthcare.
The site also gives you a chance to join the supporters of the legislation by contributing $25 or receive the free newsletter.
National Small Business United (NSBU) also has produced a web site supporting the Fair Tax legislation. Surf over to nsbu.org/fairtax and get its spin on the new plan as well.
Both web sites offer a far more complete explanation of the new tax than I have room to do here, so please take some time to check them out.
Support for the new tax is growing and it is likely to be one of the most hotly debated topics Congress will consider in the near future. It is something that affects every American.
