Today, the United States is considering a federal tax system overhaul that would do away with the IRS. The Fair Tax plan would replace income tax with a country-wide sales tax that each member of our society would pay as a part of everyday shopping. Paychecks would not have income tax taken out of them any more, which would act like a raise that would allow more Americans to shop for the items that they need.
One of the problems being seen with our current income tax system are numerous scams that creative people use to hide income, or to otherwise get out of paying their fair share of the tax burden that must be paid to keep the country running smoothly. While federal tax refund checks are nice to have, many people believe that having their whole paycheck to enjoy would be nicer.
The Fair Tax proposal would like to tax only the new items being purchased for use or consumption in homes; it would not apply to business expenses. The suggested tax rate is placed at 23%, with monthly rebate checks being sent to households that are in lower income brackets. This monthly payment would act like our current federal tax refund checks and be free money for the lower income homes to use towards necessities.
Unfortunately, the rebate plan that would send out monthly federal tax refund checks for the Fair Tax is part of the problem that is keeping this simple taxing system from entering our lives. The richer do not want the poorer to have monthly federal tax refund checks. The richer claim that it would be unfair to make the poorer pay less taxes based upon incomes. The proposed monthly federal tax refund checks act to reduce taxes.
The current United States president is against the Fair Tax plan, and wants to overhaul the current income tax system, to include more pages of instructions on how to get our federal tax refund checks. It is quite possible that there isn’t an American alive that has ever filled out their own IRS Form 1040 (long version0 that would vote ‘yes’ to more pages of IRS income tax instructions.
The Fair Tax proposal has been handed to congress during each session since 1999. Perhaps today is not the day that income taxes will be revoked. However, at some point in time the antiquated income tax system will cease to function correctly and need to be changed. Today, it is too easy for many Americans to hide income made online, or made working ‘under the counter’ or, for Americans to be injured through income tax scams.
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