The Fair Tax Act Can Benefit All Americans

Rep. Buddy Carter (R.Ga.), introduced H.R. 25, the Fair Tax Act, was introduced by Buddy Carter (R-Ga.) to replace the current code of tax with a national consumption taxes known as the FAIRtax.

“Each household will receive a monthly prebate based on federal poverty levels and household size that will allow families to purchase necessary goods, such as food, shelter, and medicine, essentially tax-free. This is similar to our current individual exemption and refundable tax credit system,” Rep. Carter

Andrew Clyde (R.Ga.), Jeff Duncan, R-S.C.), Kat Cammack(R.Fla.), Scott Perry (R.Pa.), Thomas Massie (R.Ky.), Ralph Norman (R.S.C.), Bill Posey (R.Fla.), Gary Palmer (R.Ala.), Jim Banks (R.In.Rep. Carter was joined by Barry Loudermilk, R-Ga., and Scott Perry (R-Pa.).

Fair Tax began in the 1990s. Republicans proposed a variety of tax reforms in 1995 and 1996 to reduce the income tax.

Steve Forbes advocated the idea of a flat 17% tax. In 1999, John Linder, a Georgia Congressman introduced the first fair tax/flat-tax bill.

Since then, “FAIRtax” The country’s leading tax reform movement. The bill repeals all corporate and personal income taxes, as well as the gift and death taxes. It also replaces the payroll tax with a national sales tax.

Fair Tax would also eliminate the need to file forms or keep receipts. Each taxpayer receives their full paycheck, as well as the prebate depending on their family size.

Accordingly, every time a taxpayer makes a purchase of something, they pay federal taxes “new” Retail services and goods

The FAIRtax Act currently has some support. But it still needs more. Democrats and some GOP members of Congress are stepping up to fight for the dismantling of our current income tax system. These special interest groups are not the only ones.

It’s possible that politicians opposing the FAIRtax Act are misguided or influenced in some way by lobbyists. However, the irony of the FAIRtax Act strikes tax policy where it matters most and offers a viable solution.

If Congress passes the Fair Tax, it will send a signal that Congress is making progress. “right” Type of progress) and solutions.

Washington, D.C., doesn’t like the idea of solutions.

Right now, the FAIRtax Act is being resisted. Many pundits and naysayers focus on one negative soundbite. That everyone will have to pay a 30% sales tax on all purchases. However, critics are missing the point. The FAIRtax Act ensures that all working Americans will receive their entire paycheck. There is no income or payroll tax deduction.

Savannah Pointer from The Epoch Times reported that this is false. “The FairTax Act of 2023 (H.R. 25) states the tax rate would be 23 percent in 2025, with adjustments in subsequent years, and would be in lieu of the current income taxes, payroll taxes, and estate and gift taxes.”

Another incorrect myth is that the poor will suffer, while the wealthy reap the rewards. This is an old rumor that we’ve all heard, and it is absolutely false.

If a family of four makes $3,333 per months ($40,000 annually), the monthly payroll tax rate is 7.65%, or $255 per mois ($3,060 annually), excluding additional income taxes and withholding. The family could be eligible for the earned income tax credit if they filed it. However, this credit is not always used.

There is no withholding under the Fair Tax Act. The entire $40,000 is paid to the family, which amounts to $3,333 per monthly. The family is not subject to tax on any spending beyond the U.S. Department of Health and Human Services’ poverty level (for a family of 4: $39,440 per year). It turns out the actual rate this family ends up paying is 0.0041 percent on their overall income—not 30 percent.

Here’s a comparison:

$45,000 Income for a Family of Four
                                           Present System           FAIRtax
Net spendable income            $37,784                  $39,835
Effective tax rate                         3%                       0.0041%

In fact, a national excise or sales tax is just as old as America’s revolution. Article 1 Section 8 of the U.S. Constitution states:

“The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.”

The Thirteenth Amendment of the Constitution in 1913 authorized income taxes, but it was only after World War II that federal taxes were withheld from our checks. “temporary” measure.

How does FAIRtax work? It’s very simple. It would be collected and sent to the Treasury Department.

It all depends on where a taxpayer lives. Some states may decide to raise taxes in order to make their point. The only U.S. states that do not have a state income tax at the moment are Alaska, Florida and Nevada. However, many others have indicated they would like to greatly reduce or eliminate their income tax.

Georgia, where i live, is soon to introduce a bill that will abolish the state income taxes and replace them with the FAIRtax.

If the FAIRtax passes, I believe it will boost America’s economy and increase the chances of Americans achieving their American Dream.

Many Americans today are pushing for systemic change. We should start by changing the federal income tax code. This will allow us to try a new system that is more beneficial to all Americans.