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Neal Boortz, a nationally syndicated radio host on Atlanta’s News Talk Radio 750 WSB, will have a FairTax information hour tomorrow at 11 a.m. Eastern Time. Click here to access his website where you can listen live online.
FairTax is a proposal to repeal all taxes, abolish IRS and enact a national sales tax administered mainly by the States. Boortz teamed up with Georgia politicians to turn the idea into a legislation; FairTax was introduced in Congress as H.R. 25 in the House by Rep. John Linder (R-GA), and in the Senate as S.296 by Sen. Saxby Chambliss (R-GA).
The summary of the legislation states that it:
*Imposes a national sales tax on the use or consumption in the United States of taxable property or services.
*Sets the sales tax rate at 23% in 2011, with adjustments to the rate in subsequent years.
*Allows exemptions from the tax for property or services purchased for business, export, or investment purposes, and for state government functions.
* Allows a monthly sales tax rebate for families meeting certain size and income requirements.
* Grants states the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury.
* Directs the Secretary of the Treasury to allocate sales tax revenues among: (1) the general revenue; (2) the old-age and survivors insurance trust fund; (3) the disability insurance trust fund; (4) the hospital insurance trust fund; and (5) the federal supplementary medical insurance trust fund.
* Prohibits the funding of the Internal Revenue Service (IRS) after FY2013.
* Terminates the sales tax imposed by this Act if the Sixteenth Amendment to the U.S. Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this Act.
Boortz co-wrote the FairTax Book with Congressman John Linder, which debuted as number one on the New York Times Bestseller list in August 2005 and stayed there for 2 weeks. Boortz donated his proceeds to charity. To purchase the book on Amazon click here. The authors followed up the FairTax Book with FairTax: The Truth: Answering the Critics, which is also available on Amazon. You can purchase both books on iTunes.
For the official FairTax website click here
For Neal’s FairTax information page click here
Neal Boortz radio show airs every weekday from 8:30 a.m. to 1 p.m. ET. To listen live click here
You can also follow Neal on Twitter
Comments
Ewa -- You got it almost right! Linder has proposed a FairTax Bill each year for about ten years. He was a Lone Ranger for most of them. He and Boortz got together for dinner and complained about taxes. Their wives, tired of the same old drivel, encouraged them to write about it instead of just talk about it. Boortz's book -- written WITH Linder -- was an instant success.
Ewa,
State government consumption as well as Local government consumption will be taxed. S/L governments are not exempt, but this Fairtax proposal may run afoul of the long held Supreme Court doctrine of intergovernmental tax immunity. America is a republic, with two sovereign powere acting on the same citizens but with different responsibilities. Federal taxation of S/L government consumption would be inappropriate if not unconstitutional!
Dax, you need to re-read my article. I know the story of FairTax, but this isn't about how FairTax was created, but about the information hour. Nowhere did I say this was the first time the legislation was in Congress. Bills get "introduced" every year, even if it's re-introducing. I also say that Boortz "co-wrote" the book with Linder."Co-wrote" is the same as writing "WITH" someone. I appreciate your comments, but if you're gonna say I didn't get something right - make sure you read the article. Thanks.
Dutchman3 -- The same argument could be made about income taxes too. If federal taxes on state/local consumption of labor isn't unconstitutional then federal taxes on state/local consumption of everything else shouldn't be either.
Ewa, there is one point here in your summary that has been misrepresented. It is a nuanced point and you may very well be aware of the truth.
* Allows a monthly sales tax rebate for families meeting certain size and income requirements.
This statement suggests some families will receive the "prebate" (not rebate), and others will not. This is incorrect. Every household in the nation consisting of members with social security numbers will receive a prebate according to the number of individuals in the household. It is very important to recognize that the only variable that matters here is number of individuals per household. Bill and Melinda Gates, having 3 children, will receive a check at the beginning of every month for $591 to compensate them for the sales tax paid on basics. This is the beauty of the prebate: There are no exemptions, no exclusions, no ways to later pervert it. Probably most satisfying, the federal government will never again know how much money you make.
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