The Essence of the Fair Tax Plan, Part 5 of 5.

This is not an attempt to cover everything in the Fair Tax Plan legislation HR25.  It is MY evaluation and in My own choice of words of those items which I feel are of maximum importance for your consideration.

The reader should remember that under the FTP each wage earner will keep ALL of his income from every source.

1.  Everyone who buys anything, including all Governments, will pay the tax.

2.  Every family will receive a PREBATE, every month, at the BEGINNING OF THE MONTH to cover the tax on essentials which are to be purchased during the UPCOMING month. 

NOTE.  One of the results will be that the poorer members of our community pay no taxes and at the same time will benefit from the new lower prices( See Number 7 below).

3.  The Constitution will be amended (the 16th amendment) so that never again will Congress be able to create a revenue plan based on income.

4.  The IRS will be abolished as will the 10,000+ pages of the Tax Code.

5.  No one will have to ever again have to prepare an annual tax return.

6.  There will never again be an IRS tax audit to worry about.

7.  Because all taxes (income and payroll) for businesses will be abolished as well, it is expected that prices will fall about 20%.

8.  Respected Economists have computed that  the revenue produced under the Fair Tax Plan, at 23%, will produce as much revenue as ALL of our existing income and payroll taxes.  In essence the two systems are Total Revenue neutral.

Over and above all of these benefits, it is estimated that the FTP will encourage companies to bring manufacturing jobs back to the USA from overseas.  This will results in more people being employed.  Thus more spending. Thus again, more tax revenue from increased purchasing power.

It is also estimated that US exports should increase substantially because of the lower prices resulting from all taxes being removed from business.  The same benefit to our economy mentioned in the paragraph above will apply.

WRAP UP.  No plan is perfect.  The above will have to get through Congress unscathed.  Certainly it will be difficult.  In order to protect the 23% tax rate, WE MUST insist that Congress control spending.

It will not be Utopia under the Fair Tax Plan, but it is the only way that WE, the citizens, have a chance to regain control over the finances of the US Government.

For those of you who have read this far, I say Thank You.  But you must act NOW by contacting your Senators and Representatives and keeping the pressure on them.

Roger Mc Cauley