- Personal Finance
Herman Cain's A B Cs of the Fair Tax
An Easy Way to Understand the Fair Tax
Herman Cain is a highly successful businessman and a skilled speaker and writer on leadership, business, economics, and politics. He is radio talk show host, a commentator on FOX News, former CEO of Godfather’s Pizza and author of four books on leadership, business and politics. He is one of the few African-Americans with conservative political views. He is a strong believer in getting rid of the IRS and replacing it with the Fair Tax. Since most people don’t understand the Fair Tax, he developed an ABC list of facts that explain the fair tax.
The list is as follows:
YOU can make money on HubPages writing articles like this!
A All federal taxes will be replaced by the Fair Tax including income taxes, payroll taxes, estate taxes and excise taxes. It is also called a consumption tax or national retail sales tax. It doesn’t replace state, local or property taxes—these are not federal taxes.
B Brackets of taxation are eliminated. There is one rate for everybody. The rate in the current legislation is 23%. But remember, this is instead of income taxes.
C Capital gains taxes are eliminated. This encourages investors to invest more. This causes businesses to grow and jobs are created.
D Death tax is eliminated and Deductions are eliminated. No more record keeping.
E Everyone is taxed at the same rate for new goods and services.
F Foreign visitors will pay the tax. That will increase revenue by about $60 million.
G Groceries and necessities are not taxed. Calculations based on family size would determine what basic necessities would cost per household. This would be paid out every month by the federal government to every family in the form of a prebate check.
H Hidden taxes hurt the poor more than other income levels. Fair taxes would liberate poor people.
I IRS is eliminated! It would be replaced with a sales tax administration which would cost one-tenth of what it costs to support the Internal Revenue Service
J Job creation in the U. S. would take off with the Fair Tax! There are many imbedded taxes in everything we buy. Taxes on corporate profits would be eliminated. Overseas jobs would be brought back to our shores.
K Keeping the collection of taxes simple would save taxpayers a lot of money.
L Some Liberals who love big government hate the idea of the fair tax because it gives people control of their money instead of giving the government control.
Lobbies hate the fair tax. 50% of all lobbying firms in D. C. would go away because they spend most of their time trying to get tax favors for somebody or some organization put in or taken out of the tax code.
M More money for workers and businesses by eliminating compliance costs (the costs of hiring lawyers and accountants).
Books by Herman Cain
Books about the Fair Tax
N No more income tax returns would be
required. Most of the paperwork would be eliminated. Think how many trees would be saved!
O Oppressive demands by the IRS would be eliminated because the IRS would not exist! Nobody would have to worry about being audited
P The Prebate of expected sales taxes on basic necessities is based on family size and paid monthly to each family.
Q Quick action by congress is not likely without a massive demand by the voters. There is a very large grass roots support for the fair tax but it needs to be bigger. It will not happen waiting for the politicians to say it’s a good idea. The people are going to have to push the politicians to do it.
R Repeal of the 16th amendment would be in the bill. This amendment authorizes congress to levy taxes on us. This is to prevent having the Fair Tax and income taxes being imposed on Americans at the same time. We can’t trust them in Washinton.
S Spend more on stuff and you pay more in taxes. Spend less on stuff and you pay fewer taxes. You are in charge of your taxes!
T Two-thirds vote by the senate will be required to change the 23% rate. This is a protection mechanism so they don’t get away with 51% vote as they did on the health care bill. They could not sneak it through.
U Underground economy would pay billions in taxes like everyone else. This includes all illegal aliens, drug dealers, pimps and prostitutes.
V Visibility of the federal taxes we pay would be crystal clear. It wouldn’t be a mystery as is the current tax code.
W Workers would control their lives and their pursuit of happiness—not the government, because it would be based on what you spend.
X Xtra large economic growth would be unstoppable!
Y You decide how much you pay in taxes when you spend—not the government!
Z Zero rate of taxation on education expenses.