Republicans just introduced legislation – the Fair Tax Act – that would abolish the IRS and any and all personal, corporate, or corporate gains taxes, and replace them with one 30 percent sales tax on consumer goods. This law would put a new sales tax on every single thing that Americans buy, while giving billionaires a massive tax cut.
This incredibly regressive legislation would do nothing but hurt working Americans while making the ultra-wealthy even richer. It’s all part of the GOP’s long game of transforming our country’s tax system to make their wealthy donors pay less and ordinary people pay more.
Out of all the issues we’re facing as a country, House Republicans have decided eliminating taxes for their wealthy donors is their priority.
If you’re a millionaire or billionaire, you’re almost definitely better off paying a national sales tax than an income tax. That’s why the Fair Tax Act is a tax cut for millionaires and billionaires, and a tax increase on working Americans. It’s as simple as that.
The Fair Tax isn’t fair. It would result in more suffering for middle and low-income families and communities while the ultra-rich save billions. We cannot allow middle and low-income workers and communities to suffer so the rich can get richer. Send a direct message to Congress now telling them to block this dangerous bill at https://actionnetwork.org/letters/tell-congress-the-fair-tax-act-is-not-fair.
ERICA PAYNE
Founder and President
Patriotic Millionaires
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The FairTax is about to be voted on in the House of Representatives. As a result, a lot of misinformation is making its way through the lamestream media. The most egregious misinformation is actually a noninformation. Many lament the high 23% sales tax while failing to disclose the current Federal sales tax caused by the current tax code. For instance, consider the Federal sales tax on a loaf of bread. Beginning with the seed merchant who sells the seeds for wheat to the farmer. As a sole proprietor, he pays 7.65% of each employee’s salary for SS & Medicare. He pays 15.3% of his own profit or salary for SS & Medicare. He pays for additional record keeping. He pays for all the required IRS reporting, including his own. If he has a partner, LLC or corporation, he pays for preparation of a business tax form. All these extra charges get added to the price of the seeds (effectively a Federal sales tax). Now repeat this analysis for the farmer, processor, bakery, delivery, and the store where you finally purchase your bread. In total, the average Federal tax on products is approximately 22% which all goes away under the FairTax. For 1%, you get rid of the IRS, record keeping, reporting and fear of an armed agency who can take everything you own without any due process. The biggest misinformation is that the 16th amendment (allowing an income tax) to the Constitution has to be abolished before the FairTax can become law. This is absurd. The fear is that the government will have an income tax and a sales tax (which I have shown it already does). However, there is absolutely nothing now to keep the government from imposing both an income tax and a sales tax, except the FairTax abolishes the IRS and all income related taxes. In fact, the government has been talking years about implementing a Value Added Tax (VAT). In fact, with each 1% increase in the interest rate, the interest on the Federal debt increases by more than $300B per year. With another debt limit increase imminent, the government will soon have no recourse by to add a VAT as half the income from the current tax system will be eaten servicing the national debt.