Arguments Against The Fairtax Act

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FairTax Act – Fair Taxation with Representation? You might be wondering who is behind The FairTax Act. Is it the crazy left wing liberals? Maybe it's the wild eyed extremists on the right? Or is it those loony libertarians? However, supporters of the FairTax Act (H.R. 25) transcend all party lines. Moreover, the FairTax supporters don't fit any predetermined mold. They come from all walks of life, rich, poor, upper class, and middle class. No, it's pretty hard to peg FairTax supporters. Therefore, just like the Boston Tea party protesters, they represent a broad cross section of America. They are liberal, conservative, libertarian, and everything else in between. Moreover, it is an American cause and believe it or not, it is not about politics…show more content…
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. (, 2009a) Therefore, the FairTax is a single-rate of 23% of federal retail sales tax collected only once, at the final point of purchase of new goods and services for personal consumption only (it is the final sellable product). Furthermore, all used items, and business-to-business purchases for the production of goods and services are not taxed. A rebate makes the effective rate progressive. Moreover, The Fair Tax Act (H.R. 25) has several objectives, including tax simplification and economic growth. It abolishes the Internal Revenue Service (IRS), the federal agency that currently collects and administers federal taxes, and shifts the vast majority of these responsibilities to the individual state sales tax authorities. Adopting such a fundamental reform would have implications for the entire process of collecting and administering taxes in the United States. The roles and responsibilities of governments at all levels, businesses, and individuals would change under the…show more content…
Therefore, this act ensures Social Security and Medicare funding for future generations to enjoy. However, this security that might not be around by the time you or I retire under the current economic deficit. Furthermore, there would not be any more tax shelters for the rich to get richer and the poor to stay poorer. Moreover, the Fair Tax Act closes all loopholes and brings fairness to taxation. Therefore, the Act brings with it transparency and accountability to the tax

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