The campaigns are over and we have a new President. How could this effect our efforts to push the FAIRtax ahead? President Trump has promised no tax on tips, Social Security and overtime. There have also been leaks from his campaign that he is also looking into a national sales tax, the elimination of the income tax and the repeal of the 16th Amendment. This is all good news.
President Trump has floated the idea of using tariffs to replace the income tax but the FAIRtax is much more economically efficient than tariffs. While tariffs do bring money into the federal treasury, they are more suited to enforcing fair trade between countries than for raising revenue. The FAIRtax however, was specifically designed to replace the income tax in funding the government.
Unfortunately the DC elites and many members of Congress in both parties will work feverishly to retain the present income/payroll tax system. These people have used the income tax system for decades to raise large amounts of money for their re-election campaigns and to exert control over our lives by giving tax breaks to those who will do their bidding and tax penalties to those who don’t. They also love having the power of the IRS at their disposal to punish those who dare to oppose their agenda with higher taxes and IRS audits. They won’t give up easily.
Of course if the Elites feel they may lose the income tax, they will recommend a value added tax (VAT) to collect the income needed for the government. The VAT has many problems –
1) it will still allow Congress to sell benefits to special interests
2) it will require businesses to complete VAT returns
3) it will still require the IRS to implement
4) it will once again hide the true cost of government from the American taxpayer
Although replacing the income/payroll tax system with something like a ten percent national retail sales tax, with a prebate, and raising the rest of the money needed through a VAT would be much better than the present system, the FAIRtax alone is all that would be needed to replace the revenue generated by the income tax and would avoid all the problems associated
with the VAT.
FAIRtax supporters have long known that the way to get the FAIRtax passed was to elect a President that is brave enough and determined enough to lead the charge. Could this be our chance?
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