| WHY A NEW TAX SYSTEM? |
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| There are eight significant reasons to reform the tax system. |
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First: The current system is too complex.The present tax code has evolved over many years creating thousands of conflicting definitions and exemptions.
It requires numerous complex forms that take an enormous amount of time and money to complete. It has also led to difficulty in enforcement and collection, and created hundreds of loopholes that are used to reduce or evade taxes.
Second: It is too easily exploited for political reasons.
Tax rates, incentives, and exemptions are altered continuously for political reasons. There is ongoing political pressure to alter tax laws to benefit or exclude special interest groups.
Third: It creates a poor economic impact.
The current tax code is often altered to provide economic stimulus for various business segments, with dubious results. It neglects the overall health of the economy. It often discourages economic growth by creating a negative incentive to work and to earn more.
An ideal system would tax spending to create a positive incentive to earn more, and save and invest more.
Fourth: It is a bureaucracy out of control.
The IRS requires a huge operating budget and over 115,000 employees to manage this huge bureaucracy. This is non-productive labor that does not contribute directly to the economy.
In fact, it is a measurable drain on the economy both in direct and indirect costs, estimated at over $600 billion annually. These educated and talented people could contribute greatly in productive jobs in the private sector.
Fifth: It requires a large number of professionals in the private sector, like tax accountants, lawyers, and even entire corporate departments, to advise, interpret and prepare tax returns.
This process wastes valuable resources on non-productive labor that could otherwise be used to build businesses and strengthen the economy.
Sixth: It forces business managers to make decisions based on tax implications rather than good business. For example, a company decides not to build a new assembly plant because of negative capital investment tax policies, and thereby deprives a community from new jobs and the company from growth.
Seventh: It is inefficient.
It just costs too much to collect taxes this way. If we are ever going to reduce the national debt without breaking the back of the taxpayer, this is the first place to reduce waste.
Eighth: It is grossly anti-Freedom.
The Founding Fathers of this great land worked long and hard to create a Nation in which Freedom reigned. Were they alive today they would vigorously oppose the Income Tax System now imposed on the hard-working citizens (and on all Americans) of this land. It goes against ALL the fundamental precepts upon which our Nation was founded.
We shall never be able to sing these famous words, "Free at last... Free at last!... Thank God Almighty, we're Free at last!" unless and until the Freedom-killing Income Tax System (and IRS) are replaced by the FairTax Act (HR 25/S 25)... the Bill now awaiting more Congressional and Senate support to move it onto the Floor for debate and passage!
The FairTax = FAIRNESS & FREEDOM for all Americans!
GoTo: FairTax FAQs!