Californians' For the Passage of the FairTax Bill (HR25/S155)
2013 marked the 100th anniversary of the passage of the 16th amendment and imposition of the income tax. Since that time our tax code has grown from 400 pages to over 75,000 pages and counting. For 100 years Americans have been discouraged from working. How many times have you said or heard "I don't want to work overtime because I'll just pay more taxes..." Our economy and the American people lose almost a trillion dollars a year in productivity and real money spent on taxes due to our overly complex tax code. The IRS is the most feared institution of our government.
It's time for change.
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 155) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.The FairTax:
- Enables workers to keep their entire paychecks
- Enables retirees to keep their entire pensions
- Reduces the cost of American products shipped overseas allowing them to compete fairly with products made elsewhere
- Ensures Social Security and Medicare funding
- Closes all tax loopholes and closes the door on our elected officials trading tax preferences for campaign dollars
- Brings transparency and accountability to tax policy
- Is Progressive, NOT Regressive because it refunds in advance the tax paid on purchases of basic necessities to the poverty level.
- Abolishes the IRS
- Result in tremendous economic growth in the United States promoting free enterprise and capitalism as companies come back to the US to produce products tax free on US soil
- Result in smaller government by abolishing the IRS' 100,000 employees and $11.7 Billion dollar budget. (We don't need to be subsidizing their jobs and with the economic boom created by the FairTax they can find another job in the private sector.) Not to mention eliminating the Hundreds of Billions of dollars American's spend on Tax Compliance
- Reduce government intrusion into our private lives. No more invasive federal tax forms to fill out. You pay your tax at the cash register
- Tax the shadow economies such as drug dealers and prostitution - or any persons doing a strictly cash business. These people currently pay NO Federal Income Tax because they don't report the income. They do however buy things - which is where the FairTax would capture their portion of their tax
TO BE CLEAR: The FairTax is not a Flat Tax, nor is it a VAT. Please don't get them confused. A Flat Tax is still an income tax and, it leaves in place payroll taxes and would do virtually none of the above. It also leaves the code open to manipulation by lobbyists and Congress. A VAT (Value Added Tax) like in Europe applies tax at each stage of the manufacturing in business to business transactions and is in effect a hidden tax. A VAT is bad. The FairTax only taxes transactions at the FINAL POINT OF SALE.
What can you do?
1. We need volunteers to help spread the word about the FairTax. If you would like to help, please sign-up, email us or contact one of the District Directors or the State Director listed in the table below.
3. Please donate money to our effort. A monthly donation of $25 is less than most people spend on coffee in a month. Even a donation of just $5 per month would help.
HR25 FairTax Review