H.R. 25: Fair Tax Act of 2011

Introduction:

To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.

Sponsor: Rep. Rob Woodall [R-GA7]

Status:
This bill is in the first step in the legislative process. Explanation: Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee (H.R. 25: Fair Tax Act of 2011)

Boortz N., Linder J., and Woodall R. (2008). Wrote several books(the first in 2005) outline and explaining the Bill H.R.25, but yet six years later we are still struggling with a tax system which creates equality for every individual regardless of race, creed, color, religion or sexual preference. In 2011 the 112th Congress: 2011-2012 received an assignment “To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the states.

Accordingly

The battle cry “No taxation without representation!” was a great political slogan coined to counter the Sugar Act of 1764. In order to help recoup the debt it incurred during the French and Indian War (or the Seven Years’ War), the British Parliament passed the act, which taxed all manner of foodstuffs imported into the colonies. The Americans, in the midst of economic depression following the war, were not particularly enamored of a new tax. Some have written that the Americans were simply whining tax evaders. The slogan was good for rallying the troops with an easy issue for
everyone to discern: that since they were not represented in Parliament, the tax should not be levied. However, the ultimate goal of most of the agitators was not representation in Parliament, but independence.

Even though most American believe, as I did we should have representation we do not,
however when H.R. 25 is passed we will be represented by what we purchase. Which in fact means every individual regardless of their immigration status or race, creed, color, religion or sexual preference, will also be represented. Non-profit organization as well as the rich and poor will pay federal taxes one time, at the time of purchase, thus allowing manufacturers to return to producing items made in America.

Boortz N., Linder J., and Woodall R. (2008p. p.xxv) writes that the elimination of the IRS would mean we would not have, federal income taxes, payroll taxes, self-employment taxes, capital gains taxes, gift or estate taxes, alternative minimum taxes, corporate taxes, payroll withholding taxes, no taxes on Social Security benefits or pension benefits, no personal tax forms, no personal or business income tax record keeping and personnel income tax filing whatsoever.

Just think about it anyone on vacation, illegal immigrates, people paying and receiving
cash, non-profit organization will all be paying federal tax to reduce the U.S.A Dept, support education, health care and social security.   Money will be re-invested in to our
businesses and manufactures will want to open new factories.

The Fair Tax Act (H.R. 25/S. 13) would apply a tax once at the point of purchase on all new goods and services for personal consumption. The proposal also calls for a monthly payment to all family households of lawful U.S. residents as an advance rebate, or “prebate”, of tax on purchases up to the poverty level.[2 (FairTax) The
sales tax rate, as defined in the legislation for the first year, is 23% of the total payment including the tax ($23 of every $100 spent in total—calculated similar to income taxes). This would be equivalent to a 30% traditional U.S.A. sales tax ($23 on top of every $77 spent—$100 total, or $30 on top of every $100 spent—$130 total).[5] After the first year of implementation, this rate is automatically adjusted annually using a predefined formula reflecting actual federal receipts in the previous fiscal year.

The effective tax rate for any household would be variable due to the fixed monthly tax rebates that are used to “untax” purchases up to the poverty level.[3] The tax would be levied on all U.S. retail sales for personal consumption on new goods and services. Critics argue that the sales tax ratedefined in the legislation would not be revenue  neutral (that is, it would collect less for the government than the current tax system), and thus would increase the budget deficit, unless government spending were
equally reduced.[5]

The sales tax rate, as defined in the legislation for the first year, is 23% of the total payment including the tax ($23 of every $100 spent in total—calculated similar to income taxes). This would be equivalent to a 30% traditional U.S. sales tax ($23 on top of every $77 spent—$100 total, or $30 on top of every $100 spent—$130 total).[5] After the first year of implementation, this rate is automatically adjusted annually using a predefined formula reflecting actual federal receipts in the previous fiscal year.

Boortz N., Linder J., and Woodall R. (2008). Fair Tax: The Truth. Harper NY NY

H.R. 25: Fair Tax Act of 2011,found on Sept 26, 2011on

http://www.govtrack.us/congress/bill.xpd?bill=h112-25

FairTax found on September 27, 2011 on  http://en.wikipedia.org/wiki/FairTax

 

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