“What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin.”. – Mark Twain
The word is out. The IRS is no longer an honest, transparent, impartial government agency. Instead it is manned by a government sanctioned hit-men with power not enjoyed by any other agency. Truth is, it never was.
The IRS is the only agency where the assumption is guilt precedes the proof of innocence. It’s the only agency that can level fines and penalties without due process. And it has the power of life or death in determining whether or not an organization qualifies for tax-exempt status.
It’s no wonder that it has become a punitive arm of the Obama administration, punishing any group or organization that Obama’s minions deem to be a threat.
The IRS is too corrupt and too cumbersome to reign in. Even our Commander in Chief claims that he only learns about IRS abuses when those abuses are revealed on the evening news. If the President, on whose desk the buck stops, isn’t aware of the IRS’s dark inner workings, how are we, the little guys, able to cope, especially when the worst thing we can receive is notice of an IRS audit?
What to do? Demand that the legislature abolishes the IRS.
But Frank, how will the government collect all the money we need to run all our government sanctioned programs without a collection agency?
The answer is simple. Replace the entire tax structure with the FairTax.
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach that abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes. Instead it provides for a progressive national retail sales tax of approximately 23%.
There is no need for a large, intrusive IRS with the Fair Tax. That’s because revenue collection will be administered primarily by existing state sales tax authorities. It taxes us only on what we choose to spend on new goods or services, not on what we earn. It is fair, efficient, and transparent.
In addition, economics experts have determined that the Fair Tax would eliminate tax and regulatory costs that are hidden in retail prices which represent 22 to 25 per cent of the cost of retail goods and services. Best of all … everyone pays sales taxes so every U.S. citizen will have skin in the game.
But what about the poor?
The FairTax proposal provides a “prebate” to ensure that no American pays federal taxes on spending up to the poverty level. The “fix” would come in the form of a monthly check that offsets the amount of tax a person at the poverty level would normally pay when purchasing life’s necessities. The size of the check increases to compensate for the size of a family.
Senior Citizens also benefit from the FairTax because it repeals the taxation of Social Security benefits and adjusts Social Security indexing to protect seniors. It ends all record keeping and income tax filings of any kind for seniors, totally insulating them from the high costs and abusive tactics of tax preparers. Since there is no tax on used goods, low-income seniors have more choices. One of the greatest advantages to the FairTax is that it eliminates gift and estate taxes. It also allows seniors to sell their homes and pay no capital gains taxes.
There is also no tax on education with the FairTax. Instead it rewards education and upward mobility in the simplest and most powerful way by eliminating tuition from all federal taxation. Because the FairTax untaxes the poor, it makes college and educational opportunities more available to everyone. Students can also keep their whole paycheck while working during the summer and part-time jobs during school rather than losing a chunk for federal income tax, FICA and Medicare.
Everyone benefits except the IRS. There will be no more hours spent preparing tax returns. Keeping tax records and storing them for seven years will be unnecessary. No more hours spent laboring over a return and calculating a myriad of deductions and charges. That time can be spent doing … well, almost anything. And, since taxes are paid at the cash register when a purchase is made, Americans can control how much they pay in taxes and how often by adjusting their spending habits.
Another advantage. Americans will know, up front, how much of their paycheck is eaten up by federal taxes and fees. Some think of the income tax as a kind of savings plan that pays dividends in the form of a tax refund at the end of the year. Few of us realize that although the government takes a portion of every paycheck each month in advance of April 15, the government pays no interest on that “loan.”
Under the FairTax, everyone’s take home pay will be for all their earnings, less state and local taxes. That could mean as much as a 35% increase on every paycheck. As people begin to realize how much of their purchases are taxed every time the cash register rings, they will take a greater interest in how their government spends their money.
Now is the time. Amid the IRS scandals and its abuse of power, it’s the perfect opportunity to scrap the entire tax system and make a change in the way we collect government revenue.
It’s time to dump the IRS and establish a FairTax.