I support the fair tax.
Note: I am not a right wing republican, so you can't attack me for being that.
Here is what the fair tax does.
Eliminate the federal income tax and replaces it with a federal sales tax.
That way, the IRS only has to collect info from all the businesses in America instead of every citizen. (probably 3 million vs. 200 million). This way we can shrink the IRS by about 90%, and eliminate headaches for filling out taxes for most citizens. This replaces the chaotic system we have now with lots of loopholes, deductions, and different tax rates for different kinds of income (work, long and short term capital gains, rent, etc).
The way it is written now is that every purchase would be subject to the federal sales tax, and then the federal government would send a rebate to every family the amount of sales tax that a person subject to the poverty line would pay. So if the poverty line is $12,000 per person per year with the federal sales tax at 25%, the government would send a check to every person for $3,000 a year.
The way I would do it, is that the basic standards such as milk, bread, water, rent will not be subject to the sales tax (so that poor people do not pay a disproportionate share of their income to taxes).
This will encourage people to automatically save. This will help them for retirement and in emergencies such as job loses.
Plus I believe that lots of businesses will start up and come to the US, because we would be one of only a few countries in the world without an income tax.
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