Donald K. Allen for President

Income Tax vs. Fair Tax

The Fair Tax is basically a national sales tax (NST). Now, don’t groan. Think about this. First, your Federal Income Tax stops. That means you have 25 to 35% more in your take-home every payday. Digest that. I can live with it. Now, when you go out to buy something new, the price will be increased by 18 to 23%. So, basically, it’s at least a wash. If it turns out like the economists calculate, production costs will decrease and the sales prices of just about everything will go down enough to make that sales tax less of a hit. Why not try this system for five to ten years? We can always go back to the way it was – you and me paying all the tax.

I’ve worked for a paycheck all my life, where taxes were taken out and I was given what was left. I had no choice. But what about people who work for cash and don’t claim it, or don’t claim all of it? Why are my taxes picking up their slack? Is that a fair system? Of course not. To learn all you want to about this movement that is currently making progress in Congress, go to www.fairtax.org and see for yourself. I’m already convinced it is the way for this country to go. The only part I’m not fully in favor of is the “prebate.” I believe we should simply not tax food, medicine, and utilities (natural gas, electricity, telephone, fuel oil).

This is a big one. It affects every worker in America, and should be a no-brainer. Basically, the system is already in place and it would take very little to start up the NST. A bigger problem would be what to do with the IRS and its employees? My suggestion is to change the name from IRS to NTEA, or National Tax Enforcement Agency, to ensure that all businesses, vendors, and companies are complying.

“There is $5 trillion in assets in offshore tax shelters” – CNN 3/28/02.

Who will oppose a National Sales Tax/Fair Tax? All of the following: H&R Block and all tax preparers, tax attorneys, current IRS employees, everyone who doesn’t pay income tax now, drug dealers, criminals, people with offshore tax shelters, people who have otherwise avoided paying income tax (including those that just don’t file). Add in those making money from illegal gambling, sports betting, flea markets, prostitution, stolen car rings, unreported foreign income.

For: Everyone who has ever been audited, everyone who has always paid their income tax, everyone who wants to see a reduction in their overall tax burden, everyone who wants to take home more of their earnings to save or spend.

The number of Americans paying zero Federal Income Tax grew to 43.4 million tax returns last year, representing 91 million individuals. That’s out of 136 million Federal Tax returns filed. Roughly 15 million households and individuals file no tax return at all. This adds up to about 121 million Americans, 41 percent of the U.S. population, who will be paying nothing (including those who pay tax and get a complete refund). Married taxpayers pay roughly 75 percent of all federal income taxes, despite filing only 40 percent of returns.

• State with the lowest number of “non-payers” : Alaska
• State with the highest number of “non-payers” : Mississippi
For more information go to: www.taxfoundation.org
www.ustreas.gov/education/fact-sheets/taxes/ustax.shtml