Federal Income Tax Vs. The Fair Tax PlanThere is a plan being passed around the United States Congress called the Fair Tax plan. It is a plan that would help the United States government a great deal. The federal government taxes on our earnings. The IRS takes approximately fifteen to thirty-nine percent out of every registered person's paycheck (fairtax.org). This kind of taxing started in 1913. Before this our country taxed its people on tobacco, tea, and coffee. The United States prospered for over one hundred years using this method. Now, we have an outstanding national debt and our Medicare and Social Security programs are losing money. Plus, there are almost twenty million illegal immigrants working in the United States not paying taxes whatsoever (illegal immigrant counters.com). This problem has to be fixed and the Fair Tax plan is the solution.
The Fair Tax plan is a tax replacement plan that simplifies the tax code a great deal.
The plan will completely disband and defund the Internal Revenue Service. It will eliminate all individual income tax, corporate tax, unemployment tax, gift and estate taxes. Instead, the Fair Tax plan imposes a twenty-three percent sales tax on all goods and services. Plus, all Americans citizens with registered, legal social security numbers will receive a monthly prebate to ensure that they do not pay taxes on necessities.
Implementing this new tax plan would be a significant change but well worth it. Every year millions of Americans pay tax consultants to go through twelve months of receipts, check stubs, and other documentation to file their income taxes. Some go through the grueling work of trying to file on their own. Then, everyone rushes to the post office on April fifteenth trying to beat the twelve o'clock deadline. It is one of the most...