Americans For Fair Taxation

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Americans For Fair Taxation

• www.FairTax.org

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What Do You Think?

• The income tax is bad because it has robbed you
  and me of the guarantee of privacy and the
  respect for our property that were given to us in
  Article IV of the Bill of Rights. This invasion
  is absolute and complete as far as the amount of
  tax that can be assessed is concerned. Please
  remember that, under the 16th Amendment, Congress
  can take 100 of our income anytime it wants to.
• I believe that a better way to raise revenue not
  only can be found but must be found, because I am
  convinced that the present system is leading us
  right back to the tyranny from which those, who
  established this land of freedom, risked their
  lives, their fortunes and their sacred honor to
  forever free themselves.

Who said this?
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What Do You Think?

• The income tax is bad because it has robbed you
  and me of the guarantee of privacy and the
  respect for our property that were given to us in
  Article IV of the Bill of Rights. This invasion
  is absolute and complete as far as the amount of
  tax that can be assessed is concerned. Please
  remember that, under the 16th Amendment, Congress
  can take 100 of our income anytime it wants to.
• I believe that a better way to raise revenue not
  only can be found but must be found, because I am
  convinced that the present system is leading us
  right back to the tyranny from which those, who
  established this land of freedom, risked their
  lives, their fortunes and their sacred honor to
  forever free themselves.
• T. Coleman Andrews, Commissioner of Internal
  Revenue, 1953-1955

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What Do You Think?
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Imagine .

• Bringing home your entire paycheck, pension or
  social security payment
• Never having to file a personal or corporate
  income tax return
• Abolishing the IRS and repealing the 16th
  Amendment

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Imagine .

• Truly lowering tax rates for low and middle
  income families
• Families being able to save more for home
  ownership, education and a dignified retirement
• A system that assures that no one pays federal
  tax on basic necessities.

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Imagine .

• Strategic business decisions based on economic
  principles rather than tax code implications
• American products being more competitive at home
  and overseas
• Cost of capital for business expansion being
  lowered 20 to 30

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Imagine .

• The ability to protect and assure funding for
  Social Security and Medicare
• All this happening without lowering the revenue
  projection for the federal budget
• If such a transition is possible,
• WOULD YOU BE INTERESTED?

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• The
• FairTax Plan
• HR 25 - S 1025

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Why Change?

• The current federal income tax code
• Distorts economic activity
• Depresses total income and employment
• Puts US producers at a disadvantage in an
  increasingly global economy

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Why Change?
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Why Change?

• The current federal income tax code
• Significantly increases compliance costs and
  enforcement challenges due to complexity
• Is subject to abuse by taxpayers, politicians,
  lobbyists and the IRS
• Is widely considered unfair and inefficient

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Why Change?
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The FairTax Plan

• The ONLY tax proposal created and tested using
  modern marketing techniques to find out what the
  American people, across the political spectrum,
  wanted in a tax system.
• Polling
• Focus Groups
• Paid Advertising
• Grassroots Organizations
• Earned media (4000 radio stations 80 TV
  programs)
• Cyber Campaign

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For Individuals

• Replaces mandatory federal income taxes with a
  voluntary tax on consumer purchases of new goods
  and services
• The Fair Tax eliminates these mandatory taxes
• Personal income taxes
• Estate taxes and gift taxes
• Alternative Minimum Tax (AMT)
• Capital Gains Taxes
• Self-Employment Taxes

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For Business

• Eliminates payroll and corporate income taxes
  which are embedded at each level of the U.S.
  supply chain
• No tax on Business to Business production costs.
  
• Taxes Business and Government consumption

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Why change to a tax on U.S. Personal Consumption?
8,229
10,000
Annual Personal Consumption ( billions)
9,270 Billion in 2006
1,000
100
Annual Personal Consumption 1929 2006 Data by
Bureau of Economic Analysis
77.4 Billion in 1929
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How does it work?

• All new consumer
• goods and services
• are
• taxed once
• at 23 per dollar spent at the cash register

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How does it work?

• No taxes are collected on used items
• Educational expenses are not taxed

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How is the Fair Tax Collected?

• 46 states currently collect sales tax
• Only one state sales tax form to file
• States and retailers are paid 0.25 for
  collection of the national sales tax.

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Features

• The Prebate makes The FairTax progressive when
  measured against consumption.
• The Prebate assures no one pays federal tax
• up to the poverty level

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2007 FairTax Prebate
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Family of Four

• Poverty Level 27,380
• Prebate of 525/month
• All purchases up to 27,380 untaxed
• 23 tax on consumption of new retail goods and
  services above 27,380
• No FICA tax of 7.65

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Married Couple

• Poverty Level 20,420
• Prebate of 391/month
• All purchases up to 20,420 untaxed
• 23 tax on consumption of new retail goods and
  services above 20,420
• No income tax on Social Security
• No tax on investment returns

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Effective Tax Rates 2007
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Mortgage and Charitable Deductions

• Deductions are not needed, because you dont pay
  any income tax
• Taxpayers must itemize to take advantage of
  mortgage interest deduction and charitable
  deductions only 30 do.
• Everyone will pay mortgage payments with
  pre-income tax AND pre-payroll tax dollars.

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Cost of housing less
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Benefits of the Fair Tax for Senior Citizens

• Typically, contributions to pension plans are
  made with un-taxed dollars and compound tax-free
• Pension plans and Social Security benefits are
  free of federal income taxes
• Estates can be passed on to your heirs without
  federal tax implications
• Real estate holdings can be sold without federal
  tax implications
• Purchasing power is maintained

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Benefits of the Fair Tax for Business Trade

• Price shifts will substantially increase demand
  for U.S. goods and services in all markets
• Manufacturing comes home to the U.S.
• Foreign corporations contribute to U.S. economy
  by locating offices and facilities here
• Good jobs return to our economy
• U.S. assets parked offshore are repatriated

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Benefits of the Fair Tax for the Nation

• A more efficient and fair way to collect taxes
• Provide same revenue to Federal Government
• Funds Social Security and Medicare, eliminating
  the looming problem of insolvency
• Substantially improves trade deficit, budget
  deficit and U.S. status as a debtor nation

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Benefits of the Fair Tax for our economy
Addresses some of this countrys most pressing
economic problems more effectively than any
alternative

• Drag on the economy from business decisions made
  for income tax implications rather than sound
  economics from 2 to 5 of GDP
• Negative personal savings rate in America
• Declining ratio of workers to retirees causing
  future funding problems for social security

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Benefits of the Fair Tax for You

• Take home entire paycheck or retirement payment
• Removes penalties for personal effort and
  initiative
• Encourages savings for home ownership, education,
  and dignified retirement
• No need to maintain tax records or file income
  tax returns
• Never make another personal decision based on
  federal income tax implications

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The FairTax

• Fair
• Simple
• Transparent
• Individual Control
• Keep your entire paycheck

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The FairTax

• YOU CAN MAKE IT HAPPEN!
• 11 Members of the Senate Finance Committee
• 20 Members of the House Ways and Means Committee

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Help make it happen by
Buying a copy for yourself and several for your
family and friends
Giving a copy to your local library
Sending a copy to your Congressman or Senator
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Make it happen Join Today! www.fairtax.org