You may be and don’t know it yet. Let’s see if I’m right. Do you think you should feed the government BEFORE you feed your family? That is precisely what you are doing now under the income tax because of federal withholding from your paycheck. By the use of withholding you are telling the government that they are your highest priority. Under the FAIRtax federal withholding is eliminated. You are only taxed when you spend your money, not when you earn it, putting your family first. Do you think the government should know more about your financial life than you are willing to tell your own children?
Through the income tax forms, the government knows how much you earn, where the money comes from, how much you have invested, how much you gave to charity, how much interest you’ve earned, how much you have in savings, what property you have sold or bought, what depreciation you may have taken, what your mortgage payments are, etc, etc, etc. Under the FAIRtax the only thing the government knows is how much your employer paid you for the year so the Social Security Administration can calculate your benefits upon retirement. Do you think the IRS is an efficient and secure repository for your financial information? First of all, the IRS budget for 2023 was over 12 billion dollars with a request for over 14 billion dollars for 2024. That’s a lot of tax dollars.
One would hope that IRS employees are being well vetted and are using secure networks but unfortunately that is not always the case. Some agents even after being fired for violations can be rehired due to union contract stipulations. Some agents are also working remotely from their own home computers without benefit of secure networks leaving your financial information vulnerable to hacking. There were nearly 180 million tax return filed in 2021. Under the FAIRtax, there is no need for the IRS to even exist as there total function is to administer to the collection of income taxes.
Since the states will be doing the collecting for the FAIRtax, only a small section of the Treasury Department is needed to collect the taxes from each state. That’s way more efficient, much more secure and a lot of tax dollars saved. Are you a FAIRtax fan yet? These are only three examples of why you should be. For much more information regarding the FAIRtax please go to FAIRtax.org
