FairTax Resolution

Illinois' Fair Tax President Marilyn Rickert believes it's time for Illinois to take a lead in the Fair Tax movement by promoting the following resolution for consideration at the Illinois GOP convention June 6 - 7, 2008:

Endorsing a federal retail sales tax as a complete replacement
for all forms of income and Social Security taxation.

1. Since The FairTax Book went from unavailable to #1 on The New York Times Best Sellers list in nine days (August 2005) and stayed at the top of the list for the rest of the summer, this “poll” makes it clear that tax-concerned, activist voters support a complete replacement of income and payroll taxes with a national retail sales tax; and
2. Since the sequel to above book, the FairTax Book: The Truth, Answering the Critics (March 2008) also appeared on the New York Times best seller list, this second “poll” further reinforces the above statement that tax-concerned, activist voters support a complete replacement of income and payroll taxes with a national retail sales tax; and
3. Since the overwhelming majority of all communications received by President Bush’s tax reform panel supported the FairTax; and
4. Since the current income tax system requires individual taxpayers to prepare annual tax returns using many complicated forms, where innocent errors will happen and are heavily punished; and
5. Since the current income tax system actually punishes marriage and the family, the very foundation of our country’s moral strength, and
6. Since our Founding Fathers knew history showed income taxes gave government too much power over citizens, so the Founding Fathers specifically outlawed such taxes in the Constitution; and
7. Since a national retail sales is constitutional and would restore the Founding Fathers’ description of ideal tax systems (Federalist 21) and ends income taxes, annual tax filing and the IRS: and since citizens pay sales taxes to sellers of goods and services; the sellers send collected sales taxes to state agencies; and only the state sales tax agency deals with the federal tax collectors;

We, the ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬ Republican Party of  Illinois urge the  National Party to adopt the tax reform policy HR 25, sponsored by Representative John Linder of Georgia and primary co-sponsor Representative Dan Boren of Oklahoma, known as “The FairTax Act of 2007” as a meaningful, well researched platform that will be for the good of the American people and our country. We recommend that the platform contain the following wording:
Federal Tax Reform – Federal tax reform is required and any reform should support free enterprise, economic growth, be simple and fair and support job retention in the United States.  The Internal Revenue Service is unacceptable to the U.S. taxpayers!  The Party urges that the IRS be abolished and the Sixteenth Amendment to the U.S. Constitution be repealed.  We further urge that the personal income tax, inheritance (death) tax, gift tax, capital gains, corporate income tax and payroll taxes be eliminated.  We recommend the implementation of a national retail sales tax, with the provision that a two-thirds majority of the U.S. House and U.S. Senate is required to raise the rate.  Such reforms will encourage investment and economic growth.  Lastly, such a sales tax plan must ensure no one in America pays taxes of any kind on the necessities of life, ensuring opportunity and quality of life for low and fixed income Americans.  We believe every tax at every level should be a separate and clearly visible billing to the taxpayer, regardless of type of tax, and of the calculation method, so we support tax visibility in all forms.

(Mister/Madam Chairman, I move the adoption of this resolution.)

For more information, contact Americans for Fair Taxation at 1-800-FAIRTAX   www.fairtax.org   www.ilfairtax.org

Comments

[David P. Graf]

Will a national sales tax exempt the poor who today often do not pay any income taxes at all?

[jorod]

It will also tax all services. Assuming a $10 to $11 trillion private economy, that means a 25 to 30% tax on all transactions. Will the tax cover transactions with government? Federal government alone is $3 trillion. Will it cover investment transactions. If you buy stock, is that taxable? What if you buy a house? Do you want to pay 25% to 30% on a home purchase? What about food? 25% tax on milk? You better look this over...

Why not go to a flat tax of 20%? Exempt the first $40,000. Make social security voluntary..remove the cap on contributions for FICA....end the employer tax for FICA.

[Allyn Paul]

I am all for the consumption tax! This way I can choose what tax I want to pay (in theory) and what tax I choose not to pay.
That is the fairest of fair IMHO.
AL

[Frank Goudy]

The Fair Tax is a dream.

Will never happen because more people will end having to actually make a real contribution to paying for our government. Right now the bottom 50% of tax filers pay only 3.5% of the federal taxes. You know, the money it takes, and often wasted, to support services, welfare, military etc.

These bottom 50% would pay more in taxes and that would diminish the goal of liberal politicians who believe "From each according to his ability, to each according to his need". Of course, exemptions could be made but then we would be right back to where we started, just shifting ever higher Fair Taxes to others.

Could I support some form of Fair Tax. You bet.

But, I repeat it won't happen. The trend is toward a more socialistic country whether we admit it or not.

[rockdalian]

There exists another side to the debate.
Here is an example from Bruce Bartlett, writing at the online Wall Street Journal.
http://tinyurl.com/6z83t8
I am on the fence with this one.
I favor a flat tax at this point.

[Scott B.]

Why not replace the income tax with spending reductions?

[tfb]

How about a tax that makes the poor pay their fair share instead of leeching off of the rest of us?

tfb

[HGP]

Fair tax is best. I agree with number 4, 5, 6, and 7.

[spintreebb]

Complexity, confusion and loopholes confound the FAIR Tax. It taxes consumption, not investment savings. Is my house consumption or investment?

If I buy a new car for $1,000 and a piece of artwork as an investment for $30,000 is the investment non-taxable savings? And if it is nothing more than the seller's crude sketch claiming to be investment grade artwork?

Who decides that investment A is savings but investment B is not?

Human Interest is despearately needed to communicate. Please no fictitious families. Tell me how much the Rickert family now earns, saves, spends and pays in taxes and how much it will do of those under FAIR Tax. Do the same for the Smith family, Jones family, Pena family, etc. Give us something we can realte to.

[Bob C.]

The most important aspect, and one not mentioned here, is that passing the Fairtax will put the country on the road to reclaiming our Bill of Rights that income tax and enforcement of it has taken away.

I believe this is the most important benefit to be gained.

Moreover, as there are only two sides to the economic equation, (income vs. expenses) it is preferable and equitable to tax the expense side only.