BUSINESS COMMENTARY...
The Fair Tax Plan
The Fair Tax Plan is a progressive national retail sales tax that merits serious federal government consideration. It would replace all federal income and payroll-based taxes. It would eliminate tax code loopholes and would tax us only on what we choose to spend on new goods or services, not on what we earn. The plan includes a "prebate” to ensure no American pays federal taxes on spending up to the poverty level, along with repeal of the 16th Amendment through companion legislation. The IRS would be abolished; oversight would still reside under the Treasury Department, but the government’s responsibility would be over a smaller "universe” of tax collection points, making compliance oversight less costly and more effective than the current system.
The very wealthy would pay more taxes if the Fair Tax would be enacted; those who spend more will pay more. Low, moderate and middle-income taxpayers would benefit the most from reduced tax liabilities.
Richard J. Hamill, Sr.
President
Foundation for Audit Excellence
June, 2009