Help Dick Lugar abolish the income tax and the IRS
Dick Lugar first called for scrapping the income tax and IRS 16 years ago when he ran for the Republican Party’s nomination for President of the United States. At the time, there were no Senators supporting the idea and only a couple of House members. Known today as the FairTax, Dick Lugar’s call for overhauling the tax code is critical to private sector job growth in our country.
The current tax code warps household and business decisions, discourages investment, is constantly evaded, is arduous to enforce, and is disconnected from economic realities. In short, it is fitting hand-in-glove with big government spending to punch the life out of our economy.
Instead, the FairTax will bring about dynamic and remarkable growth and create American jobs. Savings will increase, therefore providing individuals and American companies with more money to invest in job creating growth, and incentivizing companies around the globe to invest here in America.
This approach is not only fair, but transparent, with no more hidden tax benefits to special interests. The 2 percent of our GDP, or $300 billion, that Americans now pay just to understand and comply with the complex income tax code will be saved.
Moreover, individuals who currently pay almost no federal taxes, including foreign tourists, illegal aliens, and criminals, would pay federal taxes like everyone else.
FairTax Fast Facts
- Because the income taxes imbedded in the final cost of goods and services are roughly equivalent to the FairTax, the prices of goods and services won’t change significantly.
- Low income families will not have an increase in taxes. The bill includes a tax “pre-bate” to insure fairness to American citizens, covering costs of essential purchases.
- Tax compliance will be higher. Currently a majority of Americans don’t pay federal taxes. Illegal immigrants, tax evaders and foreign tourists will pay taxes when they buy goods and use services.
- Under the FairTax, mortgage rates will fall by about 25 percent.
- Foreign investment and employers will flood to the United States to take advantage of the favorable tax structure. Job creating economic growth will increase substantially.
- Wage earners will no longer pay regressive withholding taxes for Social Security and Medicare. This will greatly benefit low income workers.
- The FairTax is NOT a value added tax which adds cost at every point of transaction. The FairTax is transparent and charged only once at the final point of sale to consumers.
- According to an academic study, due to price and income effects, the FairTax would increase charitable contributions.
- The tax burden will be more broadly shared and the increase in economic activity will stimulate federal revenue without increasing taxes on those currently paying.
- The Beacon Hill Institute at Suffolk University has done comprehensive research backing up viability of the FairTax: http://www.beaconhill.org/FairTaxPapers.htm