The Department of Government Efficiency (DOGE) has focused a great deal of attention on the Unimaginable waste and fraud committed by our nation’s runaway spending habit. Multiple Reports have shown case after case of our elected officials squandering our tax dollars in both The United States and around the world.So what does the FAIRtax have to do with government spending? In one word: Transparency.
The FAIRtax elegantly shines the light on, and exposes aspects of, our government that no Other tax system can do. Our current income tax system includes a vast number of exemptions, exclusions, deductions, Credits and loopholes that effectively result in less tax revenue in favor of some socially desired Behaviors. This is effectively government spending since it reduces treasury inflow.
Under the FAIRtax these phantom expenditures would vanish. The U.S. would collect the FAIRtax on the retail purchase of new goods and services. A portion of taxes collected would Be remitted back to every U.S. citizen and legal resident in the form of a prebate which is a REFUND of taxes paid on the basic necessities of life and NOT an entitlement.
Government spending would be exposed since it is separate from the FAIRtax collection System and there would be no blurred lines. If politicians want to spend more tax dollars on Their pet projects, they would have to convince the American people of it’s need and benefits. The only way to do that under the FAIRtax is to:
- Raise the FAIRtax rate on every American, or
- Continue borrowing as long they can find willing lenders.
The FAIRtax would promote socially desirable behavior without beating it over our citizens’ Heads as our current income tax system does. For example: the FAIRtax would encourage Recycling as the tax is only applied to only new goods and services. The FAIRtax encourages Legal immigration since illegals are not eligible for the prebate. The FAIRtax encourages greater U.S. employment since it eliminates the employer matching 7.65% FICA payroll taxes. The FAIRtax encourages U.S. investment and would ignite manufacturing, business and Productivity since we would be the tax haven of the world with 0% corporate tax. Although politicians on both sides of the aisle will not be automatically rehabilitated from their Spending habits, the transparency of the FAIRtax will drastically reduce their runaway Spending.
For more information, please go to FAIRtax.org
