What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax  administered primarily by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

• Enables workers to keep their entire paychecks
• Enables retirees to keep their entire pensions
• Refunds in advance the tax on purchases of basic necessities
• Allows American products to compete fairly
• Brings transparency and accountability to tax policy
• Ensures Social Security and Medicare funding
• Closes all loopholes and brings fairness to taxation
• Abolishes the IRS

We offer a library of information throughout this Web site about the features and benefits of the FairTax plan. Please explore!

Should we sit still for this?

Tax his land, Tax his bed, Tax the table At which he's fed.

Tax his tractor, Tax his mule, Teach him taxes Are the rule.

Tax his work, Tax his pay, He works for peanuts Anyway!

Tax his cow, Tax his goat, Tax his pants, Tax his coat.

Tax his ties, Tax his shirt, Tax his work, Tax his dirt.

Tax his tobacco, Tax his drink, Tax him if he Tries to think.

Tax his cigars, Tax his beers, If he cries Tax his tears.

Tax his car, Tax his gas, Find other ways To tax his .....

Tax all he has Then let him know That you won't be done Till he has no dough.

When he screams and hollers; Then tax him some more, Tax him till He's good and sore.

Then tax his coffin, Tax his grave, Tax the sod in Which he's laid.

Put these words Upon his tomb, 'Taxes drove me to my doom....'

When he's gone, Do not relax, Its time to apply The inheritance tax.

Accounts Receivable Tax, Building Permit Tax, CDL license Tax, Cigarette Tax, Corporate Income Tax, Dog License Tax, Excise Taxes, Federal Income Tax, Federal Unemployment Tax (FUTA), Fishing License Tax, Food License Tax, Fu el Permit Tax, Gasoline Tax (44.75 cents per gallon), Gross Receipts Tax, Hunting License Tax, Inheritance Tax, Inventory Tax, IRS Interest Charges IRS Penalties (tax on top of tax), Liquor Tax, Luxury Taxes, Marriage License Tax, Medicare Tax, Personal Property Tax, Property Tax, Real Estate Tax, Service Charge Tax, Social Security Tax, Road Usage Tax, Sales Tax, Recreational Vehicle Tax, School Tax, State Income Tax, State Unemployment Tax (SUTA), Telephone Federal Excise Tax, Telephone Federal Universal Service Fee Tax, Telephone Federal, State and Local Surcharge Taxes, Telephone Minimum Usage Surcharge Tax, Telephone Recurring and Non-recurring Charges Tax, Telephone State and Local Tax, Telephone Usage Charge Tax, Utility Taxes, Vehicle License Registration Tax, Vehicle Sales Tax, Watercraft Registration Tax, Well Permit Tax, Workers Compensation Tax,

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

What happened? Can you spell 'politicians?' The socialists in both parties took over. And I still have to 'press ´ 1' for English!?!?!?!

SPECIAL REPORT: Lawmaker urges action on ‘inappropriate’ tariffs
Wednesday, June 24, 2009 – One U.S. lawmaker wants to know what is going to be done to Mexico for “slapping” tariffs on more than 90 U.S. products because the long-haul cross-border program with Mexico was ended.

Rep. Brad Sherman, D-CA, wrote a letter to Ron Kirk, the U.S. Trade Representative, asking what actions his office are taking to rectify these lopsided, “inappropriate” tariffs imposed by Mexico.

Sherman points out in his letter that there are several problems with the tariffs Mexico imposed nearly three months ago.

He starts by pointing out that the North American Free Trade Agreement limits maximum “sanctions” to pre-NAFTA levels.

Mexico has imposed tariffs of $2.3 billion, which according to Mexican officials will generate approximately $427 million in tariff revenue. Mexican officials claim that is roughly the amount of income that Mexican truckers are losing by being denied long-haul access to the U.S.

“However, with the information available regarding the Mexican trucking fleet and relative cost structures, an independent assessment, conducted by Public Citizen, has estimated Mexico’s highest possible annual losses to be between $69 million to $227.6 million,” Sherman wrote in his letter to Kirk. “That is to say that Mexico’s real losses are 16 to 53 percent of what is being imposed.”

The fact that those apparently inequitable tariffs have been in place with seemingly no activity from the U.S. Trade office obviously isn’t sitting well with Sherman either.

“It has been nearly three months since Mexico slapped these sanctions against U.S. trade. If Mexico has imposed tariffs that greatly exceed the actual damages in this matter, I would assume that the USTR is working to seek immediate relief for U.S. producers,” Sherman wrote.

Sherman then ticks off a list of questions regarding the Trade office’s action or inaction on the situation.

He wants to know if the Trade office has attempted to calculate the impact of the tariffs to see if Mexico’s numbers are legitimate. He wants to know if there are delays in getting the needed info to calculate the impact of the tariffs.

He also wants to know what the Trade office is doing to initiate a NAFTA sanctions-level challenge. If there’s not going to be a challenge, Sherman wants to know why.

“American businesses and workers may have been unfairly harmed by inappropriate tariffs recently levied by the Mexican government,” Sherman wrote in closing. “I look forward to hearing what steps the USTR is undertaking to bring relief to U.S. producers.”

Sherman pointed out in his letter that the U.S. had every right to close down the long-haul, cross-border trucking program with Mexico.

“There remain many outstanding issues with respect to Mexico’s domestic trucks’ safety and emission standards, driver licensing, insurance and data-keeping systems,” Sherman wrote.

“The Mexican government has yet to take responsibility to raise its level of safety enforcement for Mexican trucks and drivers,” Sherman wrote. “Until that happens, it is unlikely that the United States alone can ensure that all Mexican trucks and drivers entering the U.S. meet our standards for safety.”

Rod Nofziger, OOIDA’s director of government affairs, applauded Sherman’s efforts in holding the Trade office’s feet to the fire on the tariff issue.

“In addition to questioning the amount of Mexico’s tariffs, Congressman Sherman should be commended for questioning the appropriateness of that government’s actions,” Nofziger said.

If Mexico wants a cross-border program with the U.S., Nofziger said it’s going to take one thing: compliance.

“The onus should be on Mexico to raise their regulatory standards, not on the United States to lower ours,” Nofziger said.

“The tariffs are meant to focus attention away from the fact that Mexico’s regulatory standards for trucking are to say the least paltry in comparison to the requirements currently in place for U.S. trucking companies and truck drivers.”

To read the full letter, click here.

– By Jami Jones, senior editor
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