DebtFreeGuru.com's - Tip of the Week - Monday, September 2, 2003

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You Can Make a Difference…Your Support is Needed to Dramatically Improve the US Economic Landscape and the American Dream!

By John Moore

 

A few weeks ago, as I was returning from doing workshops in Tennessee, I was surfing the talk radio stations for something of interest or intellectually stimulating.  I happened upon an interview of Rep. John Linder of Georgia, forgive me as I am uncertain who the host of the show was but I believe it was a nationally syndicated show.

 

Rep. Linder was talking about H.R. 25 The FairTax Act, which he is the primary sponsor of.  As many of you know that have attended my workshops I frequently talk about introducing a “National Sales Tax” and this is exactly what H.R. 25 is and of course I got really excited!

 

Rep. Linder had much to say about H.R. 25 and needless to say I couldn’t possibly recall and pass it on to all of you.  As such I have included his commentary from his website however there were some important points he made that I wish to comment on:

  • That the rate for the FairTax would be set at 23% of goods and services.  There are studies that indicate that the cost of compliance with Federal Income Tax is as much as 22% of a products price.  Which would indicate that once implemented that price’s would begin to fall possibly offsetting the entire sales tax.

  • Because states rely on your Federal Income Tax filing to determine your state income tax, states would be forced to adopt a similar revenue plan as the Federal government by repealing income taxes and raising the sales tax to replace the revenues.

  • Every American would receive a rebate of sales taxes up to the poverty line, which would take the burden off those Americans that are less fortunate and make it a fair and level playing field for everyone.

  • Social Security and Medicare TAXES, now referred to as Payroll Taxes, would be eliminated and the programs would be funded out of general revenues.

  • A survey of 500 CEO’s of foreign companies were asked, “If the United States abolished corporate income tax would you build a plant in the United States?”  And 75% indicated that they would build a plant in the United States bring jobs back to America.

  • International corporations that currently avoid taxes by leaving international earnings offshore would bring those earnings back to America to invest in their companies thus creating more jobs.

 

The most important point I want to make and that Rep. Linder made repeatedly is that there is substantial bipartisan support for the bill, but that the only way that it will become law is that if there is a grass roots movement by the America people to make it law.

 

He stressed that it was important that you not just email your elected representatives but that you take the time to actually write a letter that you send by fax or mail.

 

Rep. Linder pointed out that while our representative take email into account, they give significantly greater consideration to letters that the receive by fax or mail because of the greater effort required to send a letter over sending an email.  Plus many organizations now use automated email campaigns, which have diluted the effectiveness of email with our legislators.

 

And to that end, I am asking each and every one of you to write your Senators, Congressmen and Governor’s in support of H.R. 25 The FairTax Act.  Additionally, would you please forward this email to EVERYONE YOU KNOW!  And…ask them to forward it to everyone they know!

 

At the end of this page are links to pages that will provide you with all the contact information you need for your elected officials.  Please write to them all in support of this historic economic legislation.

 

You CAN make a difference but you have to take action, to paraphrase Winston Churchill “All it takes for the forces of evil to triumph is for a few good people to do nothing!”  So please take that action right now and "Do Something!"

 

 

The following is directly from Rep. John Linder’s website:

 

The FairTax

 

I am the primary sponsor of the FairTax.  The FairTax is one of the most exciting proposals to ever reach the American people. It offers long-needed tax relief – in the form of lower prices, nearly nonexistent compliance costs, and the ability to choose how much to spend in taxes – to all Americans, while eliminating the income tax and allowing Americans to keep 100 percent of their paycheck. The FairTax will dramatically reduce prices, protect and ensure funding of Social Security and Medicare, empower the low-income earners, and put choice and control back into the hands of every American. All the crucial elements are in place: a public that is eager and ready for a fairer tax system, and a Congress willing to seriously consider genuine tax reform. To be competitive in the next century and to renew the American dream, we must change the way we fund our national government.

 

I am more enthusiastic than ever about seeing the FairTax become reality and more and more of my colleagues have expressed interest in the FairTax because they are hearing about it from their constituents.  This bill is gaining momentum at the grassroots level, and I urge you to review recent news and read the editorials I have written about the FairTax, read the complete text of H.R. 25, and spread the word about the benefits of the FairTax.  There are many questions about how the FairTax will eliminate costs, strengthen the economy and make April 15th just another spring day.  If you have questions about the FairTax or want to learn more about how the FairTax will change the world for our children and grandchildren, please review my FairTax Frequently Asked Questions page.

 

In this country, we spend too much time and money accommodating the growing complexity and oppressiveness of the federal tax structure.  The time for fundamental reform is now, and I hope you will review the text of the FairTax (H.R. 25) and also compare the benefits of the FairTax with the current system and other proposals.  I think you will agree that the possibility of doing away with the IRS through my FairTax legislation and putting the nation on a simple, fair, and voluntary tax system is building excitement among folks across the country every day.  I have included a FairTax Overview for your review and I have summarized this revolutionary legislation below.

 

The FairTax Act:

  • Repeals all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes. 

  • Imposes a revenue-neutral national sales tax on all new goods and services at the point of final purchase for consumption.  Business-to-business transactions and used products (which have already been taxed) are not subject to the sales tax. 

  • Rebates the sales tax on all spending up to the poverty level.

Results of the FairTax:

  • Dramatically reduce the costs of goods and services by 20 to 30 percent.

  • Allows you to keep 100 percent of your paycheck, pension, and Social Security payments.

  • Gross Domestic Product will increase by almost 10.5 percent in the first year after enactment.   

  • Compliance costs would decrease by 90 percent. 

  • Real investment would initially increase by 76 percent relative to the investment that would be made under present law.  While this increase would gradually decline, it remains 15 percent higher than under the existing tax structure. 

  • Exports would increase by 26 percent initially and would remain more than 13 percent above the level under the current tax system. 

  • Real wages will increase.

  • Increases incentives to work by as much as 20 percent in many households, leading to higher economic growth and efficiency.

  • Interest rates will fall 25 to 35 percent.

 

Contact Links for:

 

The Whitehouse

 

United States Senate

 

United States Congress

 

States and Governors

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