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Another vote for FairTax

February 13, 2013
Fort Myers Beach Bulletin, Fort Myers Beach Observer

To the editor:

The FairTax HR25 is different from the flat tax. FairTaxHR25 is a single-rate national sales tax on final retail consumption with no exemption. Business inputs aren't taxed. Education tuition isn't taxed. Flat tax HR1040 is a hybrid subtraction method VAT, which taxes capital value added at the business stage and labor value added by a tax on wages, in addition to current payroll taxes.

FairTaxHR25 replaces all income and payroll taxes including capital gains taxes, self-employment taxes, estate and gift taxes and AMT. The flat tax replaces personal and corporate income taxes, capital gains taxes and the AMT, but not payroll taxes.

The FairTax taxes income once when spent with a revenue neutral rate of 23.82 percent. It has the broadest base and lowest rate possible of any tax plan that does not tax the poor or double tax income. (2007 est.) The flat tax's revenue neutral rate is 26.76 percent; however, payroll taxes increase marginal rates by 15.3 percent on labor. (2007 est.)

The FairTax prebate un-taxes spending up to the poverty level, literally un-taxing the poor. Taxation based on consumption allows taxpayers choice as to the level and timing of taxation. It rewards hard work, savings and wealth accumulation. Under the flat tax, a standard deduction results in a progressive effective income tax rate; however, payroll taxes maintain the regressive tax on labor.

The FairTax makes the U.S. the only advanced country in the world with a zero rate of taxation on income, creating the world's largest tax haven for direct investment. The flat tax is a territorial system; income generated overseas is not taxed by the U.S. This will further encourage the migration of industry and jobs overseas.

Visit www.fairtax.org to learn more. Then contact your congressman and ask them to cosponsor HR25.

Beverly A. Martin

Jupiter

 
 

 

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