Tax Reform: FairTax or No Tax?
by activist Bonnie Hofer
Many of us long for the day when a simpler, more fair tax code will be put in place of the current incomprehensible behemoth which is currently in place. Sadly enough, the FairTax plan, with the complicated details of prebates and rebates may not be the answer, but may instead continue to allow the federal government to overspend and create just another form of complicated bureaucracy. The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with a progressive national retail sales tax. Different estimates have been thrown around as to what percent Americans would have to pay in order to replace the lost government revenue. Many of the proponents of the FairTax proposal claim that the magic number for the sales tax could be as low as 23%, while groups like FactCheck.Org claim that the tax would approach 34%.
According to Presidential Candidate Ron Paul, who is often referred to as the maverick Republican Congressman from Texas, there is an easier answer. He states simply we can achieve much needed tax reform by simply abolishing the income tax and replacing it with "nothing". When Americans first hear Ron Paul say this, they are skeptical the United States could just eliminate the income tax, but as Congressman Paul states, "Individual income taxes account for only approximately one-third of federal revenue". Cutting the budget by one-third would still leave the government with approximately $1.8 trillion dollars, or roughly the equivalent of the 2000 federal budget. In Congressman Paul's opinion, Congress does not need the current $2.7 trillion dollars collected from taxpayers each year and it is pointless to discuss tax reform, without addressing spending reform.
Having never voted for and unbalance budget or a tax increase, Paul has been honored as the "Taxpayer's Friend" for the tenth consecutive year. In order to eliminate the income tax, Paul acknowledges that Americans must first change what we perceive the role of government in our lives. Government cannot take care of us from cradle to grave and run a foreign policy empire if we want cut government spending.
Ron Paul For Congress
Monday, November 19, 2007
Posted by M Theory at Monday, November 19, 2007