FairTaxTaxPanelStatement

FairTaxTaxPanelStatement - Submission of Americans For Fair...

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Submission of Americans For Fair Taxation on the FairTax Comprehensive Tax Reform Proposal to The President's Advisory Panel on Federal Tax Reform April 29, 2005 Submitter’s name: Leo Linbeck, Jr., Chairman Organization name: Americans For Fair Taxation Date of submission: April 29, 2005 Contact information: Web site address: www.fairtax.org E-mail address: leo_jr@fairtax.org Telephone number: 1-800-FAIRTAX Category of submitter: Association Submission of Americans For Fair Taxation, FairTax.org 1
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Issue Answer Page 1. The tax base . ........................................................ Retail consumption 3,4 a. Revenue neutrality . ......................................... Yes. 23 percent of new goods & services 4,5 2. Exemptions, deductions, credits, exclusions. ....... Held inventory credit, expires with first turnover 4,15,16 3. Tax rates. .............................................................. 23 percent tax inclusive a. Progressive. ..................................................... Yes 10 4. Distribution of the tax burden. ............................. Taxes consumption of new goods & services above the poverty level 10 5. Treatment of charitable giving. ............................ Giving with “pretax” dollars 9 6. Treatment of homeownership . ............................. Entire house payment made with “pretax” dollars 7 7. Collection methods . ............................................. Via state sales tax organizations 4 8. Treatment of business (long run economic growth and job creation). ..... Business fully untaxed, significant GDP growth; growth in capital stock and real wages, significant job creation 13,15 9. Simplicity (including transparency and stability). ................. Simple and entirely transparent with a more stable tax base than income 5,15 10. Fairness . ............................................................... Yes, according to thorough polling 15 11. Economic growth and competitiveness . .............. Significant GDP growth; tax-haven status with maximum border adjustability 5,13 12. Compliance and administrative costs. .................. Significantly lower costs with higher compliance 12,14 Table of contents Introduction ....................................................................................................................................................... 3 A. Brief description of the FairTax plan .......................................................................................................... 3 A1. The FairTax plan taxes all personal consumption at the point of final, retail consumption . .............. 3 A2. The FairTax rate is revenue neutral at 23 cents from every dollar spent. .......................................... 4 A3. The collection mechanism of the FairTax builds on existing state structures. .................................... 4 B. Advantages of the FairTax over any other tax system. ............................................................................... 5 B1. The FairTax imposes the lowest possible marginal rate of any revenue-neutral system. ................... 5
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FairTaxTaxPanelStatement - Submission of Americans For Fair...

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