10 March 2005

Taxation, A Better Way Exists

"Americans for Fair Taxation is a 501c(4) non-profit, non-partisan organization, headquartered in Houston, Texas with an office in Washington, D.C. Since it was founded in 1995, Americans for Fair Taxation has grown to become the largest tax reform organization in the United States with over 400,000 supporters and members. Americans for Fair Taxation advocates the elimination of the current income tax code and proposes to replace it with the FairTax, a single-rate, federal consumption tax collected only once, at the final point of purchase for personal consumption." This is a tagline that I chose to share for your information. I suggest checking into this. You can find more information on this subject at www.fairtax.org.
Now my thoughts. I read this thoroughly and I must say, it looks good. Some who may subscribe to my political ideology may agree or disagree. Simplifying the income tax code is a project that the President is committed to. But if you read into the fairtax, you will see that the income tax would be replaced by it. It looks good all around. Those who make their living in the income tax reporting industry will be hurt by this. But I feel that those skills could be put to use much better in other areas of business. There will always be a need for Corporate America to have facts and figures to be reported to investors. Sales information is gobbled up by Wall Street and decisions on stocks and bonds are made on this information. CPAs will have their hands full adjusting to the new situation. But the growth potential under this type of system will out weigh the negatives. Making our products less costly to consumers will raise the buying power of those consumers. The more that they buy, the more revenue the government would received. And the hope would be that the tax burdens coming down along with a booming economy, companies would have huge incentives to keep jobs in this country and return those that left. Foreign companies would have an incentive to move their operations here. That would be nice to see.
I also see another benefit, Social Security and Medicare. If Congress were to pass the fair tax today, the funding difficulties of Social Security and Medicare/Medicaid, will be eased. That being said, that's not to mean that the current system shouldn't be changed. The idea to allow workers to put aside monies in personal accounts has merit. Under the fair tax, reporting to the Social Security Administration on workers would still take place. Armed with this information, the Social Security Administration could then make the predetermined allocations to the personal account. The funding, like every other department of the government, would come from the fair tax. Americans could select through a choice of 4-6 different savings plans similar to a 401k or the current government's Asset Allocation Account system. Diversified funds with relatively small risk would leave a secure future for all of us. I believe that the elimination of the IRS could fund the transition from the current system to the President's plan. Perhaps we should connect the two together so as to ensure that the Social Security transition funding isn't misdirected.
Please help pass the Social Security Reform package. You can help by signing the online petition. This petition will be forwarded to both Senators from your state and urges passage of the President's Reform Package. Get Involved. Because this matters to everyone. http://www.preservingsocialsecurity.com http://www.blogsforbush.com/

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