by Kip Dodson
I earned my Bachelor of Science degree in Industrial Engineering many years ago from the University of Cincinnati and worked for over 20 years at this helping global organizations. My brain will always think like an engineer. When you think of “engineer,” words that come to mind may be linear…precise… …structured…and logical.
When a good friend came to me a couple years ago and told me about the grassroots organization, Americans for Fair Taxation and explained it’s history and growth, I thought, “What a fantastic idea! How can I help?” The fact is, when many of us think about the United States tax code, the words that come to mind are, broken…complex…. confusing…. burdensome…and unfair.
Do you know that the United States Federal Tax Code is 74,608 pages long? To give you a visual perspective, that’s as tall as a three-story building! President Obama’s Patient Protection and Affordable Care Act added 4,000 pages alone.
Is it logical to make taxation so complicated that most Americans don’t understand it? Does America need a $400 billion dollar annual industry focused solely on filing taxes, or worse — avoiding taxes — for people and businesses within our country?
Worse yet, the federal debt stands at over $18 trillion dollars, that’s $57,000 dollars per American! It’s also estimated that $10-15 trillion dollars in investments has bypassed, or left the United States due to our current tax code. The United States has the highest corporate income tax rate in the industrialized world. It’s too expensive for businesses to operate here, so they go abroad to other countries where it costs less. However, fewer businesses operating in the United States means fewer JOBS, higher unemployment, a higher cost of living and more debt. Unfortunately, this is the current state of affairs in our country.
The answer to bringing more jobs back to the United States is the non-partisan FAIRtax plan. It’s the most widely researched tax reform bill in our history, with more than five economic studies published on its positive effects. Donald Trump and Mike Huckabee most recently endorsed it in their Republican presidential nomination campaigns.
One of the best things about the FAIRtax is that it’s simple. The FAIRtax is just 134 pages of clear, transparent taxation – with no hidden IRS taxes. Under the FAIRtax, Americans keep all of their income. You will never fear a government audit again.
The FAIRtax is also well, fair. In lieu of an income tax, a federal retail sales tax of 30 percent will be put into effect on all goods (new only) and services. It will raise the same revenue as our current system without all the IRS baggage. All INCOME-BASED taxes; personal, corporate, business, payroll, capital gains and estate taxes will be gone and replaced by the 30 percent retail sales tax, which will clearly be shown at the bottom of your receipt for each purchase you make. Simple and straightforward, the FAIRtax is entirely based on what you consume.
Now, you may say we can’t afford a 30 percent national retail sales tax on top of the state and local taxes we pay today. Think again, and read more about the FAIRtax. The poor alone already pay roughly 39 percent in hidden taxes. For the middle class it’s even higher, at approximately 50 percent. Simply Google “hidden taxes” and see for yourself how much extra poor and middle class Americans pay unknowingly for everyday goods. Once you look, it will become quite obvious that we, indeed, have a tax problem.
By adopting the FAIRtax plan, tax favors that are currently provided to the rich, those favors given to special interest lobbying groups and to those who are politically connected will be a thing of the past – because they are not fair. Who wouldn’t be in favor of that?
It’s estimated that within one year of passage, the FAIRtax plan will return more than one trillion dollars in global investment to the United States – that’s neither DEBT to China nor more printed American dollars. Furthermore, releasing the tax burden on American companies will make U.S. products more competitive, create jobs and raise wages. By passing the FAIRtax plan, America will be the place to invest!
Why do so many Americans back the FAIRtax?
- Simple – No more perplexing IRS tax code or income tax returns
- Fair – No more exemptions or loopholes for favorites; everyone is treated the same
- Transparent – Your sales receipts list the tax you are paying; no more hidden taxes in purchase prices
- Individual Control – You are taxed only when you consume – not on your income and productivity
- Keep What You Earn – No more federal withholding; keep what you earn. No more taxes on used items and no estate taxes upon death
Our current system will collapse without a sweeping change. It is the income-based taxes within the United States that is the source of our downward spiral. And best yet, their elimination will be the saving grace of a country we all love, the U.S.A.
To learn more about the FAIRtax and its “prebate” plan, which will help assist the poor, visit www.fairtax.org/more. Get the FAQs and get involved!