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"In this world nothing can be said to be certain, except death and taxes."
Benjamin Franklin
Ban The IRS
When the income tax was instituted in 1913 the tax form was four pages long and you would had to have earned more than $300,000 (in 1994 dollars) to be even required to file a return. In 90 years this is what it has come to...
- The average tax burden borne by Americans in 2000 was 33.5%
- In the year 2000, the 1040 form was 70 lines long and had 117 pages of instructions.
- Individuals and businesses waste nearly $200 billion a year filing their taxes. We bear this burden through higher prices and lower wages.
- The IRS prints some 280 instruction forms to explain how to complete nearly 480 tax returns.
- The tax code is so large that each year the IRS mails enough pages of forms and instructions to circle the earth nearly 28 times.
- The number of IRS employees has more than doubled in the last 30 years.
- Half of all filers hire someone else to do their taxes.
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.
Use the Tax Calculator to determine your financial status under a National Sales or Consumption Tax.