Fair Tax FAQ – Kevin Wade’s guest appearance on The Angel Clark Show

Kevin Wade was a guest on The Angel Clark Show on Monday night (July 25th, 2011).  Here is the audio from his time on the show:

 

 

 

 

 

Kevin Wade sent me the following information about the Fair Tax before the show:

 

Let’s Get To Work With FairTax

FairTax is a fundamentally different way for the Federal government to raise its revenue. FairTax is revenue neutral. It is neither a tax increase nor a tax decrease on the American nation. It is just a very simple and fair way for the Federal government to collect its needed revenue. It is also sweeping in its impact on America; her jobs, her prosperity and her future.

FairTax is not a fringe idea. It is presently before Congress as House Bill HR 25 and Senate Bill S 1025. There are over 50 cosponsors today in the House and Senate. Hearings are scheduled this week in the House Ways and Means Committee. Representative John Linder was for a longtime a lone voice in support of FairTax. He is no longer alone.

In detail, FairTax replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax with a monthly cash prebate to ensure no American pays federal taxes on spending for the essentials in life. The poor will pay nothing. The wealthiest heavy spenders will pay a rate of 23% inclusive of the final retail sales price. There are no loopholes or special preferences.

FairTax provides dollar-for-dollar federal revenue replacement. Through companion legislation, the repeal of the 16th Amendment will ensure Americans never face both a national retail sales tax and an income tax.

This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift tax, estate tax, capital gains tax, alternative minimum tax, Social Security tax, Medicare tax, and self-employment tax. It replaces all of these with one simple, visible, federal retail sales tax on new goods and services.  The IRS is disbanded and defunded.

FairTax taxes us only on what we choose to spend on new goods or services, when we choose to spend, where we choose to spend and in the amount we choose to spend, not on what we earn.

The FairTax is a fair, efficient, and transparent. The American people will never again file and report their income to the Federal government.

Today’s high profile Congressional consideration of tax reform, as simple and sweeping as FairTax, may not be driven by a sudden clarity of principle and purpose in Washington’s leadership. It is more the result of the rancor and louder rumblings of 300 millions across the fruited plain saying, “Enough is Enough!” and “Times Up!”

The economy is devastated by endless recession. People across the country are looking for practical solutions not tired politicians continuing tired political arguments. People don’t need speeches. They just need work.

The present IRS tax code is an artifact from an earlier time. It punishes working and hiring, economic prosperity and American success.

FairTax doesn’t.

Under FairTax there is no Federal income tax, no Social Security tax and no Medicare tax. You bring home all of your paycheck free of Federal tax, not what is left as under the present system. You take care of your family with all of your check. You pay your rent, mortgage, credit card bill and car payment with all of your check, not what is left. It is only when you shop for new goods and services that you pay your share of the national tax burden. America becomes the best place to work.

Under FairTax, if you operate a business it also has no Federal income tax and no Social Security tax or Medicare tax on employees. You can grow your business with all of your gains to reinvest, not what is left as under the present system. You buy new equipment, expand your shop and hire more employees using everything you’ve earned, not what is left. When you shop for new goods and services for your personal use you pay your share of the national tax burden. America becomes the best place to start and grow a business.

The present IRS tax code collects only from law abiding US residents and businesses filing and reporting their taxes. It is narrowly based.

FairTax isn’t.

Under FairTax everyone in the country will pay. Millions of visiting foreign businessmen, now untaxed, will share the tax burden with each purchase made while in the US. Millions of foreign students, now untaxed, will share the tax burden. Tens of millions illegal aliens, now untaxed, will share the tax burden with each purchase at the retail counter. The large underground economy of car thieves, drug dealers, and human traffickers will finally pay into the Federal revenue stream. With millions more people paying into the FairTax system, law abiding Americans will have less tax burden to carry on their own shoulders.

The present income tax code includes a maximum corporate rate of 35%. This keeps overseas profits of US corporations over there. European profits stay in Europe to expand European facilities. Asian profits stay in Asia to be reinvested to create more jobs there. These stranded profits do not return home the rebuild the economy here.

FairTax returns stranded profits to the US. Under FairTax there in no Federal corporate income tax, but there will be a lot of jobs returning with those homebound stranded profits.

Foreign multinational businesses seek locations around the world to expand and hire. The same tax code obstacles that strand American profits there block foreign investments here.

FairTax unblocks the inbound flow of foreign investment. More jobs are created here in America as new facilities are built and staffed using foreign money.

The present tax code not only collects taxes from every step of American manufacture and every worked hour of wages and salary. It also adds significant paper shuffling “tax compliance” costs to American produced services and goods. Every filing consumes money and resources in its background preparation and cross-checking. Every sought tax loop hole has its own long and winding paper trail requirement. None of this is free. None of this creates a better, higher quality service or good to compete with and turn back the flood of foreign imports.

A recent study indicates the final cost of US made products include 12.5% in Federal tax and tax compliance burden. Our tax code does little for border adjustment of this embedded cost when we try to export. The world markets have choices today. It is not the 1960’s anymore; maybe in Washington, DC but not in a heartland being savaged by global competitors.

Exports bring money into the country the old-fashioned way. We earn it. Today the choice is a Made in China or Made in USA plus 12.5%. Who makes the sale? Who builds the order? Who cashes the paychecks? Our present tax code does wonders for job creation in China. It time to start doing wonders for American families.

Over 80 national economists predict 10% growth in the economy within 12 months of the enactment of FairTax. Growth at 10% cures all economic ills. This happens without tax increases and without more Federal debt. It is called free enterprise. It is how the nation was built and will be rebuilt. FairTax does not simply level the playing field. It rewrites the rules and makes a new game.

The new game is called, “America’s Back and We’re Winning!”

 

Please remember that this information written about the Fair Tax WAS NOT written by me. I am simply passing the information along.


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