Let's review....
August 2001
During the debate over tax relief in 2001, we sought to move it toward reforming our tax system, but the debate centered on tax relief (important, too) and obscured the fact that our tax system is broken. More tinkering around the edges (as has been done year after year only to make it worse each time) won't fix it.
What began in 1913 as a single two-page form backed up by 14 pages of law, has become a nightmare of complexity that punishes work, saving, investment, risk-taking, and entrepreneurship. GoTo....
1913! Income Tax ( 1913! Income Tax = http://www.geocities.com/cmcofer/tax1913.html )
The tax code is now so complex that even the IRS can't understand it and it's getting worse. In 1997, reporters from Money magazine received inaccurate or incomplete information 22% of the time when calling the IRS's toll-free hotline. Despite efforts to correct the problem, wrong answers given to Treasury Department investigators during 2001 filing season increased to 47%. Taxpayer Assistance Centers (TAC's) didn't do much better.
| For one more good reason to close-down the IRS, click H E R E! ( You PAY, they PLAY! = http://www.geocities.com/cmcofer/irs-play.html ) |
Investigators visited TAC's in 11 different states and received incorrect answers 49% of the time. If trained IRS employees can't understand the tax code, how can we expect average citizens to understand it? It is no wonder that the estimated private sector compliance costs of the income tax exceeds an astounding $250,000,000,000 ($250 Billion!). Even Albert Einstein said the Income Tax Code is "the hardest thing in the world to understand."
The Solution:
There is only one real solution to the quagmire of our federal tax
system: FUNDAMENTAL TAX REFORM! We need to get rid
of the current code entirely and build a new system of taxation
that is better for taxpayers and our economy.
The solution to our tax problems is the FairTax, created from years of work with consumer focus groups, forums with small business owners, and application research from America's top economic minds - including professors from Harvard, M.I.T., Stanford and Boston University.
Although we relied on economists for the numbers, we relied on the American people for the FairTax concept. By holding many, many "focus group" meetings with ordinary citizens from all walks of life, we found that Americans wanted a system that was fair, easy to understand and easy to implement, and that there should be no exceptions and no special treatment.
We put all of these ideas into the FairTax to create a fairer, simpler code that is revenue neutral and makes no policy decisions. We simply abolish the federal income tax, the payroll tax, the self-employment tax, the capital gains tax, and the estate and gift tax; and we replace these with a neutral sales tax, currently calculated at 23%. No exceptions. No exemptions. Just one tax paid on every final retail sale.
Though less discussed than the income tax, the payroll tax is more burdensome for most Americans. Amounting to 15.3% of every paycheck, this money comes out before the worker ever sees it. With the FairTax, you would keep your entire paycheck. You can still rely on Social Security, however. It will be fully funded through the sales tax.
NOTE: To ensure fairness to low-income families, a sales tax Rebate will be mailed to each family monthly (in advance), thereby allowing all purchases up to the poverty level to be made completely tax-free. In this way, all the necessities of life are bought without any tax-burden. And we mean "without any tax burden!" The Rebate, i.e. Family Consumption Allowance (FCA), is based on family size, not on income.
FCA! (Rebate) ( FCA! = http://www.geocities.com/cmcofer/fca4.html )
Today, taxes are hidden in the price of everything you buy. Corporate income taxes, payroll taxes, tax compliance costs, and more are all hidden in the price of every loaf of bread and every gallon of milk that American families bring home.
Our team of economists has calculated these hidden taxes to be 20%-30% (average of 22%) of the cost of goods. Eliminating these hidden taxes could lower the price of goods at home and lower the costs of our exports as well.
Passing the FairTax will be no small task. Supporters are working with both sides of the aisle, on both sides of the Hill, and throughout the country to make this bill a reality. With now over 420,000 "grassroots volunteers" (growing daily), word is 'spreading fast' about the FairTax. It's being recognized as the b-e-s-t (by far) plan with which to replace the incomprehensible, complicated, unfair Income Tax System that we're saddled with today.
More good news! The Coalition for Fundamental Tax Reform, (CFTR) strongly favors fundamental tax reform. CFTR membership is made up of some 35 groups, organizations, associations and businesses who have over five(5) million total employees. The overwhelming majority of CFTR members have publicly endorsed the FairTax and the remainder have pledged their support for "fundamental tax reform" without specifying a particular plan.
Coalition Members! CFTR ( CFTR = http://www.geocities.com/cmcofer/cftr.html )
The President of the American Farm Bureau Federation gives the FairTax a resounding endorsement! ( AFBF! = http://www.geocities.com/cmcofer/fb.html )
Look at this growing list of Congressional SUPPORTERS of the FairTax concept, i.e. REPLACE the federal income tax, payroll taxes, corporate and self-employment taxes, estate, gift and capital gains taxes WITH a "consumption" tax AND abolish the IRS.
( SUPPORTERS! = http://www.geocities.com/cmcofer/asupp.html )
Here's a one-page FLYER! that highlights the features of the FairTax. A nice print-out for placing on Bulletin Boards, etc. ( FLYER! = http://www.geocities.com/cmcofer/fly-p.html )
When the day comes that the FairTax is enacted into law, all Americans will have more control over their lives, more opportunities, and more individual freedom.
What is the FairTax?
The FairTax is one of the most exciting proposals to ever reach the American people. It offers long-needed tax relief � in the form of lower prices, nearly nonexistent compliance costs, and the ability to choose how much to spend in taxes � to all Americans, while eliminating the income tax and allowing Americans to keep 100 percent of their paycheck. The FairTax will protect and ensure funding of Social Security and Medicare, empower the low-income earners, and put choice and control back into the hands of every American.
All the crucial elements are in place: a public that is eager and ready for a fairer tax system, and a Congress that could be willing (with a nudge from the electorate) to seriously consider genuine tax reform. To be competitive in the new century and to renew the American dream, we must change the way we fund our national government.
The FairTax Act:
- Repeals all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes.
- Applies a revenue-neutral national sales tax on all new goods and services at the point of final purchase for consumption. Business-to-business transactions and Used products (which have already been taxed) are not subject to the sales tax.
- Offers a universal rebate in an amount equal to the sales tax on essential goods and services so that no American pays taxes on the purchase of necessities.
- Eliminates the IRS. No more filing of Tax Returns by Individuals.
FairTax Benefits:
- Dramatically reduce the price of goods and services by 20 to 30 percent.
- Allow you to keep 100 percent of your paycheck, pension, and Social
Security payments.
- Your PayCheck! ( Your PayCheck! = http://www.geocities.com/cmcofer/paychk.html )
- Enable families to save more for home ownership, education and retirement. [Tuition, for example, is not subject to the FairTax.]
- Gross Domestic Product will increase by almost 10.5 percent in the first year after enactment.
- Compliance costs would decrease by 90 percent.
- Real investment would initially increase by 76 percent relative to the investment that would be made under present law. While this increase would gradually decline, it remains 15 percent higher than under the existing tax structure.
- Exports would increase by 26 percent initially and would remain more than 13 percent above the level under the current tax system.
- U.S. made goods will not only become more competitive in world markets, but will be able to compete better with foreign made goods imported for sale in the U.S. market!
- Enacting the FairTax will not only help reduce our nation's Trade Deficit, but it will also have a very favorable impact on job creation in the USA.
- Real wages will increase.
- The working poor would experience an increase in real lifetime consumption of between 8 and 14 percent.
- Increases incentives to work by as much as 20 percent in many households, leading to higher economic growth and efficiency.
- Interest rates will fall 25 to 35 percent.
- Makes tax evasion virtually impossible, reducing the cost to those who already pay their fair share.
- You're MONEY AHEAD! with FairTax. ( MONEY AHEAD! = http://www.geocities.com/cmcofer/ft-it.html )
Remember, Congress created the Income Tax... and Congress can "un-create" it! The 16th Amendment (1913) to the Constitution did NOT mandate an Income Tax... it simply allowed it, if Congress so willed it. Upon enactment, the FairTax will totally replace the Income Tax, and the follow-on repeal of the 16th Amendment will insure that the Income Tax cannot be reimposed.
Do your part to help MAKE IT HAPPEN! Let your voice be heard in the new Term starting in 2005. Congress will be listening intently. Speak to them... loud and clear! Lemme' hear ya'!
FairTax!
FAIRTAX!
FAIRTAX!
Tell Congress that you support H.R. 25, The Fair Tax Act, and you want them to enact it... NOW! Write, phone or fax them today! Sign the Petition...
PETITION! ( PETITION! = http://www.taxreformpetition.net )
| Here's some late-breaking News! ...the FairTax has now also been introduced into the Senate. Click on S.25 to see the Senate version; it's same as the House bill: H.R.25 |
IMPORTANT! Join Americans For Fair Taxation! (AFFT) This "grassroots" volunteer organization provides exceptional leadership, excellent promotional materials and positive ideas that can make your voice heard LOUD & CLEAR! ( AFFT = http://www.fairtax.org/ )
Finally, I urge you to form a group in your own local area. As "grassroots volunteers" supporting the FairTax, meet regularly to keep up-to-date on progress of the Bill, recruit new members, and SPREAD THE WORD about the FairTax for meaningful, r-e-a-l tax reform.
Imagine, if you will, a livewire FairTax group in all 3,066 Counties in the good ol' USA, all saying to their CongressFolks... Pass the FairTax, NOW! ...and the Senators and Representatives all responding with a loud... WILL DO! Yep, I'd call that true representative "little d" democracy! 
Onward & Upward!
Cliff Cofer
726 8th Street
West Des Moines, IA 50265-3636
Ph: 515/224-6573 Email: Cliff Cofer | [email protected]
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* * * * "The Tax System's Broken. Let's Fix It!" * * * *
FAIRTAX FACTS! ( FAIRTAX FACTS! = http://www.fairtaxnow.com/ )
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