Understanding the Fair Tax
TO THE EDITOR
The air waves have been saturated with commercials trashing the "fair tax."
The commercials state that the "fair tax" will add a 23% sales tax (consumption tax) on the goods we buy. The commercials just leave it at that and don't tell any more about it. Well, as Paul Harvey would say, "here's the rest of the story"!
Under the "fair tax" system, federal income taxes would be abolished. Did you get that? No more IRS to contend with, no more tax returns to file to the IRS. Also capitol gains taxes on homes and assets that you sell would be eliminated. Federal estate taxes (inheritance or death tax) and gift taxes would no longer exist. As it stands now, if an elderly couple who own a farm, business, home, or other asset that has been in the family for generations die, the children must pay the government an inheritance tax to keep it in the family. With the economy the way it is today, most folks don't have the money to pay, so then it has to be sold in order to pay the taxes. Now I ask you, is that "fair?" The "fair tax" would eliminate the "death tax". You may be asking, "what about the poor people that are under the poverty level?" There will be a check or tax credit available for those people and for people with dependents.
Here is another benefit of the "fair tax." Under the present system, drug dealers, illegal immigrants and other criminals that engage in illegal activities don't pay any income tax on their ill gotten gains. Under the "fair tax" system they would pay taxes every time they purchase any consumer goods, big or small, just like you do. The more expensive the purchase, the more tax they would pay.
This is a no brainer. Call or write our federal elected officials and demand that the Fair Tax Law be brought to the House and Senate floor for a vote. This will stimulate our over taxed economy and make more jobs in every state of the union.
R.B. KINNEY







