H.R.25 - Fair Tax Act

To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. view all titles (3)

All Bill Titles

  • Official: To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States. as introduced.
  • Popular: Fair Tax Act as introduced.
  • Short: Fair Tax Act of 2011 as introduced.

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Displaying 121-150 of 163 total comments.

  • Ramjr51 01/28/2011 8:10pm

    HOW does it work? The National FairTax is uber-simple:
    1) Every non-business end-Consumer pays the SAME sales tax rate (23%) on each purchase of NEW Goods & Services
    2) EVERY household receives the SAME amount of ‘prebate’ payment every month based on the number of LEGAL residents in household.
    3) Income Tax permanently goes to ZERO.
    4) Social Security & Medicare Tax permanently goes to ZERO
    5) Business Entity Taxes go to ZERO
    5) SALES TAX RATE on NEW Goods & Services for a household of four (4) is
    a) SPEND $22,050/yr = 0.00%
    b) SPEND $25,000/yr = 2.74%
    c) SPEND $40,000/yr = 10.34%
    d) SPEND $70,000/yr = 16.25%
    e) SPEND $100,000/yr = 17.83%
    f) SPEND $500,000/yr = 21.99%
    g) SPEND $1Million/yr = 22.49%
    NOTES:
    A) Because of #1 and #2 above, there is nothing for taxpayers to keep track of, no forms to file; Retailers collect and remit sales taxes to their state as they do already in 45 states.
    B) ONLY Illegal Aliens pay the full 23% because they do not qualify to receive the cash prebate

  • SmilingAhab 01/31/2011 4:50pm

    Great! I’m not one of those minimum wage lice, I have accounts in countries that don’t charge sales taxes. I’ll just make all my wealth in America and spend it elsewhere! Why should I have any sort of loyalty to to my country?

    Have fun spending a quarter of your pay on nice things, you fat, stupid lazy inferior chumps!

  • Comm_reply
    bdg333 03/31/2011 6:47pm

    That doesn’t make sense! Many products are expected to be lowered in price because the embedded taxes in there exceed the Fair tax itself, so their prices would lower. (This means, more than a quarter of our money spent (seeing as income would not be taxed anymore) is already going to the government)

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    NHWynter 04/17/2011 7:24am

    SmilingAhab – Please let us know which countries don’t have a sales tax or a VAT?

    There are only 12 countries that don’t have an income tax.
    http://answers.yahoo.com/question/index?qid=20080128201000AAY626l

    Andorra, Bahamas, Bahrain, Brunei, Kuwait, Maldives, Monaco, Nauru, Oman, Qatar, United Arab Emerites, Vanuatu.

    Bahamas has import taxes and high tariffs
    Bahrain – Business tax and “Social Insurance” tax
    Kuwait – Corporate income Tax (which we all know is passed on to consumers)
    UAE – Taxes on banking and oil.

    That’s just a brief rundown… So, enjoy..

  • mmstahlecker 02/03/2011 7:00am

    Any bill that eliminates the IRS is tempting, but I would be much more comfortable with a flat tax. 23% is awfully high and will only be pushed higher. Let’s have a progressive flat tax from 1% to a MAX of 10%. Everyone pays. Heck if taxes were capped at 10%, I’d be happy as a lark.

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    shauncorleone 03/11/2011 4:13am

    A progressive flat tax? How is that not an oxymoron?

  • ondroad 02/03/2011 3:49pm

    TWENTY-THREE PERCENT?!!! God only gets TEN!!! Guess the US Gov’t is bigger than GOD! 5% is plenty, capped at 5% Tax and make it a constitutional amendment to stay within the budget and zero out our DEBT! No common sense in our gov’t any more on either side of the aisle.

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    bdg333 03/31/2011 6:49pm

    if it were capped at 5%, the fair tax would not work. For many products, the embedded taxes are over 23%, so you already pay 23% to the government. Also, income tax, payroll tax, capital gains tax, social security tax, medicare tax, death tax, corporate tax, and all taxes except the Fair tax would be eliminated.

  • mmitsuzono 02/03/2011 3:55pm

    It all sounds great. But I have a few questions.

    How do they enforce this sale tax? how do we stop, say black market, especially online?

    wouldn’t most people go to Mexico and Canada every year to buy luxury goods there instead in America and start buying much less groceries and gas in America daily?
    If you are rich, you can afford to buy foreign luxury goods like cars to ship here. Don’t they already do that?

    And even if people wouldn’t do that, isn’t 23% too little for our deficits? I kinda remember hearing that sale tax would have to be more like 30% to balance the budgets without any other tax before.

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    SmilingAhab 02/04/2011 2:03pm

    They police the poor with their ever expanding military police force. This is one of the centerpieces of the libertarian scheme to turn America further into an aristocratic corporate state. Between this, the Supreme Court decision to allow unlimited corporate funding of campaigns, the attempt to repeal the public campaign fund, and all the hypocritical crap from the Dempublicrats and the Koch Brothers’ PR campaign, the Tea Party™, the extremists are going to turn this country into a place where only egocentricity and treating your fellow man like cattle will be rewarded by the banker-backed aristocracy and altruism, honor, contentment and conservation will be punished to the full extent of whatever the elite’s secret police feel like doing to you. After all, if we can’t pull down the elites, don’t we deserve to be crushed under heel? You’re on top or you’re on bottom.

  • Comm_reply
    shauncorleone 03/11/2011 4:06am

    Do you buy your crazy tea locally or do you have it imported from N Korea?

  • Comm_reply
    NHWynter 04/17/2011 7:39am

    Some great questions.

    The Sales tax is collected by the companies who send them to each state, as they do now. It would be an added line item on your receipt.

    As for online, this is a good question, but it’s very easy. Every US Based company currently collects sales taxes online for the states where they have sales offices in. Newegg collects California state tax, but not other taxes. Amazon collects for states, but not in Texas because they don’t have a sales office here. You’d have to buy from sites outside the US and then you start dealing with imports and customs..

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    NHWynter 04/17/2011 7:39am

    Again, going to Mexico or Canada isn’t the answer because things wouldn’t necessarily be cheaper. In fact, people do that now.

    People would get a rebate/prebate to cover the normal expenses.
    Most who are rich enough to ship things in already pay import fees, customs fees, and tariffs, yes.

    23% is actually plenty. In fact, it would allow the US to pay off it’s deficit within a decade I believe. Not to mention the spending it eliminates by getting rid of the IRS and the tax codes..

  • GTurck 02/07/2011 4:20am

    Nobody likes taxes. But it is the price we pay to live in a civilized world. No matter how you cut it you are going to be paying extra to the government to have the security and safety the right so desires. We lefties also think that the government was instituted to do for the individual what the individual cannot do for themselves (thanks Mr. Lincoln). So taxes are it.
    Now the question is how to secure that money fairly. The richer you are the more you have benefited from the government. Throwing 23% down on every purchase on top of state and local sales taxes doesn’t seem to be fair even if some is rebated. So we would still need the IRS for that?
    All the arguements presented are as old as this Republic and have only occasionally been debated honestly in Washington. The commenters here, myself included, are only talking from their singular non-responsible perspective. We should all try to think a bit larger.

  • Comm_reply
    bdg333 03/31/2011 6:56pm

    23% is not thrown on everything, please read the bill! income Tax, payroll tax, social security tax, death tax, corporate tax, estate tax, capital gains tax and many more are eliminated, and all that would be left is the Fair Tax. Also, for many products, 23% or higher of the cost is embedded taxes anyway, so the Fair tax would lower the prices of many consumer goods. The middle class would have NO TAXES ANYMORE (along with everyone else) except for taxes they pay in NEW products. If you buy a used car, NO TAX!!! Buy a used home? NO TAX!!! Buy a used anything? NO TAX!!! The Rich do not often buy used things. They buy the newest, costy homes with new costy cars, all new, all taxed! If they buy it now, why wouldn’t they buy it later?

  • saber 02/07/2011 8:35pm

    In time this Tax idea would make the current tax code seem like a nursery rhyme.
    It could not be enforced anyway you look at it. There will be a black market
    for everything.

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    shauncorleone 03/11/2011 4:04am

    And it would require two parties to participate in tax fraud, as opposed to now when it only takes one.

  • Comm_reply
    maxim80 10/15/2011 11:15am

    Bingo…I want to see them tax bartering. This would be a throw-back to the middle ages in terms of tax collection. The rich would no-doubt find a way around it, and the rest of us would have to resort of ‘victory garden’ and ‘black market’ bartering.

  • Deathwalker 02/08/2011 12:56pm

    A 23% flat tax almost sounds great till you start to realize that every time a product is sold it would be taxed 23%. I know this still sounds great but do not forget this will lead to a trickle down tax as I didn’t see anything for resellers in the Bill for resellers only retailers. Plus this Bill violates the US Constitution as the Federal is only allowed to tax commerce between states and other nations. So you would have a pyramid tax scheme with this Bill. Also note Congress wouldn’t be over seeing the tax it would be the Federal Reserve which does not belong to the USA Government but independent banks. Eliminating the IRS would only help remove the one government agency other than Congress to Audit the Federal Reserve Banking system. This would only make for higher taxes just not noticed as easily by the US citizens, and allow for less monitoring of the Federal Reserve which prints a Fiat Currency which we call US Dollars.

  • Comm_reply
    bdg333 02/22/2011 7:51am

    The commerce clause says nothing about taxes. It says that the federal government may regulate the commerce between states, foreign nations, and indian tribes. This means that it does not violate the US constitution. Also, this is not a VAT system, it only taxes a product ONCE.

    Also, remember, with every other tax being eliminated, the increase in tax by the fair tax will be evened out by the elimination of every other tax.

    You should read The FairTax Book.

  • Comm_reply
    shauncorleone 03/11/2011 4:04am

    Every time a NEW product is sold, the tax is levied. Selling pre-owned goods (that includes houses) is not subject to the FairTax.

  • Comm_reply
    NHWynter 04/17/2011 7:44am

    First, you clearly haven’t read the bill. If you had, you couldn’t have made all the assumptions you did.

    1) Only NEW products are taxed.
    2) This tax would not violate the Constitution. It’s not a pyramid scheme. The current INCOME TAX did violate the Constitution until they added the 16th Amendment.
    3) The Federal Reserve wouldn’t be overseeing anything with this tax.

  • judahmahay 02/09/2011 6:20am

    I really like the FairTax bill, but I can’t support it till they remove the part which repeals public financing for presidential elections. Public financing for elections should be a totally different debate. I want this bill to pass, but it needs to ride on its own merit and not have pet projects attached to it. Thoughts?

    Source: http://www.opencongress.org/bill/112-h25/text?version=ih&nid=t0:ih:82

  • Spam Comment

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    judahmahay 02/10/2011 12:32pm

    No I don’t. It’s weird but it appears as if the Fair Tax Act has a provision which would eliminate public funding for presidential elections. Yesterday, I called five congressman on the Ways and Means Committee along with the author of the bill and the head of tax policy for the Ways and Means Committee, but I got no clear response. Until this is clarified I can’t support this bill. The debate over whether our country should provided public financing for elections presidential or otherwise should be a different debate than the one surrounding the Fair Tax Act.

  • Comm_reply
    bdg333 03/31/2011 6:58pm

    On the form you pay your income tax on you, you are allowed to donate to presidential elections. if the Fair Tax were to pass without that provision, the public funding would be empty because the form would be gone, so they would need to get rid of the old way of doing it to reform it anyway, so the Fair tax just gets rid of it now just so they don’t waste time later!

  • Spam Comment

  • kooki 02/25/2011 10:59pm

    Once again, the Republicans are working for the rich and the detriment of everyone else and this bill is another example.

  • Comm_reply
    fakk2 03/01/2011 6:46pm

    @Kooki,

    (nice name btw) How is eliminating the IRS “working for the…detriment of everyone else”? The IRS is the worst collection agency in the world. Something needs to be done about them.

    To answer the questions asked before:

    Stop online black markets? —1.) Require hosting companies that offer ECommerce to A.) Keep records & file returns with their state of whom has sold what or B.) Require copies of records & returns their merchants have filed with their respective states, 2.) Require all business tax license holders to file returns in their states of amount of products sold, 3.) Combination of 1 & 2

  • Comm_reply
    fakk2 03/01/2011 6:46pm

    Stop people going to Mexico/Canada for luxury goods? —Common sense says if they do it now, they’ll do it later also. As unpopular a thought it is, we should withdraw from NAFTA and possibly impose a 100% tariff on American companies that ship from outside America to their counterparts here (like the car companies, Wal-Mart, etc), and possibly a 50% tariff on everything else that is imported. Eliminate collective wage, retirement, and health care bargaining. If we allow employers to set those 3 items (minimum wage or not, 401k or company IRA, company paid health insurance or direct purchase), we will become more competitive internationally.

    How to balance budgets? —SPEND LESS THAN WE TAKE IN. Sorry, there’s no other responsible way to do it. If we take the bottom 50% of Americans & the top 10% of Americans, and tax them 100% of what they make in a year, it won’t equal the $9 trillion of public debt we have.


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