Fair Tax Act would end IRS
To the editor:
Now that we have all finished our annual tax ritual, consider what it would be like to skip it forever.
Also skip the 15 percent Social Security tax and the Medicare tax.
The government and all its social programs would still be fully funded by those above the poverty level. Those souls living below the poverty level would pay no tax at all.
This new method of supporting our government is appropriately called the Fair Tax Act (House Resolution 25), which is a bipartisan bill sponsored by U.S. Rep. John Linder of Georgia and U.S. Rep. Collin Peterson of Minnesota.
The Fair Tax Act would replace the entire federal income tax system, including personal, payroll, corporate, self-employment, capital gains, gift and inheritance taxes.
This tax is a consumption tax paid at the cash register -- no forms, no IRS.
Instead of paying 43 percent of your paycheck in taxes, you would pay 23 percent when you purchase a new item or service for your own personal consumption, if you are above the federal poverty level.
The Fair Tax Act would allow Americans to keep 100 percent of their paychecks; would dramatically reduce the cost of goods and services by 20 percent to 30 percent; would allow families to save more for home ownership, education and retirement; would raise the same amount of money for the federal government; and would make American products more competitive overseas.
It would be a beautiful thing to behold.