Congressional House Bill HR-25, the Fair Tax Act, may be the most revolutionary piece of American legislation since the drafting of the Constitution and the Bill of Rights.  Are you ready for something new, which would stimulate the economy, bring back  our jobs, and create new jobs?  Good!  The answer is the FairTax which is a tax on consumption.  This national sales tax would replace the Internal Revenue Service, and empower citizens and businesses alike.  How does it work?

     All personal income tax would be abolished.  All corporate income tax would be abolished.  Inheritance, gift, capital gains, social secuirty and medicare taxes would be abolished.  The financing of the federal government by all of these taxes would be replaced by one tax, a national sales tax on consumption of 23%.

     According to a Harvard Study each manufactured product or service originated in our country has already an embedded 22% tax cost factored into the final price of the product or service.  With the FairTax, employees would keep one hundred percent of what they earned.  A business, large or small would keep 100% of what it earned.   Taxes would result only on first time purchases of goods and services at the retail level.  The cost of goods and  services attributed to the embedded taxes would decrease because they would no longer be factored into the price of the goods or service.

     Under a national sales tax program, the United States products would be approximately 22% cheaper when being sold overseas.  This  would attract more customers for American goods and stimulate United States production at home.  It would allow United States goods to once again be competitve internationally.

     Experts believe that up to eleven trillion dollars is held in off shore banking (tax shelters) accounts by United States citizens and businesses to escape United States tax laws.  The United States has the second most stringent tax laws in the world which frustrate commerce.  Remove the harsh tax regulations, and the flow of off shore money back into the United States would be astounding.  Company growth and jobs would proliferate.

     The FairTax would also raise revenue from up to 50 million tourist a year who visit the United States but who pay nothing to the federal government.  Now they would be contributing to overall good of the country by paying federal tax on goods and services they purchase while visiting.

     A large, “shadow economy” already exists in the United States which is defined as legal activities that are not reported for tax purposes.  This activity is estimated by researchers Friedrich Schneider and Dominic H. Enste as being 10% of the United States Gross Domestic Product.  in addition to the   “shadow economy”, there is an  “underground economy” including the world of  drug dealers and prostitutes.

     Through a national consumption tax both the “shadow economy” and the “underground economy” would be paying taxes.

     The substantial illegal immigration population would also be paying a national sales tax on everything they consume.

     The FairTax is set up to treat everybody fairly, including lower income families.  It provides that the federal government send every head of household a prebate ( an advanced rebate) each month to cover thes sales taxes paid on the basic necessities of life up to the poverty level.  Every head of household in the United States would receive these checks.  Lower income people would therefore pay no taxes.

     In 2005, syndicated talk show host Neal Boortz and Congressman (Ga.) John Linder wrote a book, “The Fair Tax Book”, which became an overnight, New York Times best seller.  The ideas in this article can be largely credited to these men who have worked hard and diligently in an effort to recapture the American spirit of economic freedom which has been muffled by over-reaching government regulations on income.

     Would you like to have more savings?  Would you like to see growth?  Would you like to see the great American ingenuity and creativity be reborn?  Would you like the future as Americans to brighten for you and your children?  Would you like to see good paying  jobs proliferate?  Would you like to see your honor and hope as Americans restored? 

     Let us open a dialogue as a nation.  Abolish the IRS and replace it with a national sales tax on comsumption, the FairTax.  Welcome  and embrace the American Renaissance.