Just keep in mind this is orginally a MySpace bulletin (that I wrote), that's why it's dumbed down a little
OK, so the fair tax is a national sales tax (23%) that will get rid of the federal income tax (it actually abolishes the entire IRS). Big deal right? Actually, yes, very big deal. And to the young people who think this stuff doesn't matter, listen up, it's huge. Stuff like this will affect your whole financial life, and this particular thing will affect it for the better.
Why get rid of the income tax and impose a 23% national sales tax? Sounds high, but...
An American that makes from 0 to $7,550 (taxable income) is taxed 10% of their income
(the median American family's income is $43,200 and slightly rising)
Not so high anymore eh?
Also, what if you want to save some of your income? Then it wouldn't be taxed AT ALL. The fair tax would encourage savings, thus helping people make wiser financial decisions.
Apparently this bill would also get rid of the cooperate income tax. This means it will be cheaper for companies to make the goods you're taxed on, thus making the actual goods cheaper. Apparently the tax savings to these companies will completely make up for the sales tax, thus making products cheaper. About cheap enough so that, after you add the national sales tax, they'll cost the same as they do now. So you probably won't even be spending more money on your trip to Wal-Mart.
Also, anyone under the pverty level will be exempt from this sales tax, so we dont' have to worry about them.
I don't quite understand all of it, but I definately know it's better than what we've got now, so go, spread the word, repost this, write your senators, whatever. There isn't a whole lot of supposrt for this bill yet, but it's growing quickly, comon you know you like the idea of no income tax and no IRS, spread the word!
Here's a good overview of the Fair Tax Bill (bill # HR25)