The following is my speech as prepared, it ended up being altered due time restraints and a very vocally involved audience -- something I'm not used to:
So what is the Fairtax and why is this guy talking about a new tax on a day of protesting tax increases?
The Fairtax is a revolutionary replacement (not reform) of the federal tax system. Why is it revolutionary? Well, it requires the repeal of the 16th Amendment that established the income tax and the abolishment of the I.R.S. Does that sound good to you? How does replacing all the other federal taxes such as Social Security, Medicare, estate (or death tax), and corporate taxes sound?
The Fairtax replaces them with one national sales tax of 23% that is only collected at the point of retail sale. What that means is that you only pay a federal tax when you buy something for personal consumption and it will be collected at the cash register. No more filling out 1040’s! Right now, it is estimated that $265 billion a year is spent on tax preparation. How insane is that we have to pay out of our pockets for the privilege of giving more of our money to the government?
There are hidden imbedded taxes at multiple points along the supply chain for anything we buy at local stores that we are oblivious to, but cause a lot of headaches for business and are eventually passed down to us consumers. Getting rid of them simplifies everything and we will get to see what we are really paying. For the small business owner, it means that you don’t pay taxes on payroll, stock, and equipment needed for the business.
Not only does the Fairtax bring true transparency to taxation, it will supercharge our economy, leading to growth – something we aren’t seeing anymore. Right now, we are seeing corporations flee the country due to increasing taxes that make it incredibly hard to operate in the
Our country is in crisis. We are looking at a staggering amount of debt in the new federal budget. Newt Gingrich wrote this little nugget of information today:
“• If you’re a 50-year old-with a college degree, you will pay approximately $81,000 over your working life just to pay the interest on the debt in the Obama budget.
• If you’re a 40-year-old, you’ll pay $132,000.
• And if you’re a 20-year-old, just starting out after college, you will pay a whopping $114,000 just to service the interest on the debt created by the Obama budget.”
It is true the Fairtax won’t do anything about out of control government spending, but it is start of bringing sanity back to an insane situation. In 2008, $3.42 billion was spent on lobbying in
Everyone will pay under the Fairtax, there won’t be any exemptions. There won’t be any tax dodging like there is now. Everyone pays their fair share. This isn’t a merciless system, the poor and elderly won’t be penalized, as there is going to be a “prebate” (rebate that comes in advance) that is calculated to cover the taxes on needed items such as food and shelter. This is based on the number of people in the family; for example a family of four would get between $406 and $537 each month, depending on its makeup. It doesn’t matter how much they make, this applies to everyone. Those who have more money will spend more and that spending will be what is taxed. Combine that with used goods not being taxed and you have a fair system that will enable the poor to work their way up and out of poverty. This is a country founded on the idea that we can make better lives for ourselves and the Fairtax will not change that, but enhance it.
In their great wisdom, our founding fathers created a constitution that understood our rights were self apparent, God given and inalienable, not something granted by the whims of the government currently in power. Real power lies in the hands of the people, but the people have to make their voices heard. There is a reason the 1st Amendment to the Constitution is the first in the Bill of Rights. Without free speech, the D.C. establishment would be able to completely ignore the people. What we see here today and across our great country is only a beginning. You must make your voice heard and continue to be heard!
I just want to thank all of you for coming out and exercising your Constitutional rights to be heard and seen. We have to exercise our rights to keep them. Thank you for being good Americans.
The Fairtax is a grass roots movement, those at the top won’t make this kind of reform unless, we the people, demand it. We need your help to make this happen. Please visit our table or our website www.fairtaxmn.org for more information and to volunteer.