As a Libertarian it is rare that I agree with the powers that be at the federal government level. However, I applaud Chairman Greenspan’s comments on replacing the income tax with a national sales tax. I recommend the FairTax – HR 25 and S 25. Former Secretary of State Jim Baker also testified in favor of a consumption tax at Thursday’s hearing. The most telling part of the Honorable Jim Baker’s testimony was that he repeatedly reiterated that we should move to a consumption tax rather than add it to the existing income tax system. The implication was that the move should be swift rather than gradual. I could not agree more. America is fed up with the income tax! Adding any more complexity would be a serious mistake. Let’s simplify the tax system and replace it with the FairTax.
The FairTax is the only national sales tax plan which meets both parties and the administration’s requirements for a new tax system. It is a full tax-replacement plan not swayed by the winds of political change, which may occur in the future in Washington. It brings transparency to the tax system and even an 11-year-old child can explain it.
Under the FairTax, No American pays any tax up to the poverty level. The FairTax package has a key component designed to protect the poor, fixed-income, and middle class, where every of resident Americans with legal Social Security numbers qualifies for a rebate. This makes it unique from any other national sales tax and it makes it progressive! This rebate zeros any tax up to the poverty level, as determined by the Department of Health and Human Services. For example, a family of four receives $479 per month, rebating all federal tax on spending up to $24,900. A couple would receive $357 per month and an individual $178 per month.
Unlike the flat (income) tax or a French value-added tax (VAT), the FairTax replaces the payroll tax and the income tax with a broader tax base that is revenue neutral for the national budget, Social Security and Medicare and allows working families to take home 100% of their paychecks free of federal income and payroll taxes. Let’s not add anymore hidden and complicated tax systems to the current system. Let’s move to the FairTax! To learn more visit www.fairtax.org
Sincerely,
Geoff Keller
Treasurer, Libertarian Party of Maine
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