Editor, Times-Union:
Along with so many other Americans, I went through the painstaking ritual of filing tax returns. While doing so, it struck me as odd, that I am checking the work of the federal government taking taxes out of my earnings, and if their rules allow, I can get some of that money back. If not, I would owe. Then I read a report about 3,000-plus Americans who have given up their citizenship last year to avoid our country’s high taxes, a trend that has been increasing over the last decade. Then I read a letter about how Americans don’t have faith in the “Made in America” label and how it is missing from our stores. All of these issues have one thing in common: an overcomplicated, overbearing, wealth-draining tax code. There is something in Congress right now that can alleviate all of these problems.
The Fair Tax Act of 2013 (H.R. 25/S. 122) will repeal all federal income taxes and replace them with a national retail consumption tax. This means no federal income taxes or payroll taxes will be withheld from the worker’s paychecks. At the same time, citizens living abroad will want to return to the United States to live in the world’s largest tax haven! Lastly, it will create manufacturing jobs because it will eliminate corporate income taxes (which also save consumers money in that no income taxes will be passed on to consumers). The Fair Tax is included in the price of new goods and services that you purchase. In other words, the price tag at the store (about what we pay now) will include the 23 percent consumption tax. Some people might think that is too high, but the income taxes removed from the prices of products and services is 22 percent on average. Plus, federal taxes withheld from workers’ paychecks are roughly 22-23 percent. On top of that, citizens are going to be given a monthly prebate that will pay for the taxes paid on the necessities of life. For example, a single person, with one child, would receive a monthly prebate of $297/month. A couple with two children would receive $595/month. And Americans in this country who are not citizens – do not receive this prebate, so they would have to pay taxes on everything they purchase.
There are people who have said we should try a flat tax. When they passed the 16th Amendment, the federal government proposed a flat tax on income. It stayed flat for 23 years then became a graduated tax system with deductions and exemptions. Now how did that work out for Americans?
The Fair Tax is not a Republican idea. The Fair Tax is not a Democratic idea. The Fair Tax is an American Idea. We can turn America into the largest economic engine in modern history that will benefit individuals and businesses alike. Many congressmen and senators are co-sponsors of the Fair Tax Act (H.R. 25/S. 122). Go to www.fairtax.org and when you understand how simple and how much you will benefit from this legislation, call your congressmen and senators and either thank them or ask them to support the Fair Tax!
Gary Eppenbaugh
Warsaw, via e-mail