The following is the latest newsletter from the Vertical Politics Institute:
Yesterday, I emailed you about the Fair Tax to explain why I think the Fair Tax is an important piece to America’s economic future.
Today, I would like to explain in greater detail what the Fair Tax is and offer you three ways you can help the Vertical Politics Institute (VPI) start a broader discussion about tax reform in this country. A discussion which I believe will lead America to conclude the Fair Tax is the best path forward.
First, what is the Fair Tax?
The Fair Tax Plan is a thoroughly researched national tax system carefully designed to replace all income and payroll taxes with a simple, transparent and fair national retail sales tax. The Fair Tax will eliminate all federal income and payroll taxes. It will do away with all personal federal, corporate federal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment taxes.
The Fair Tax will replace the Internal Revenue Code with a progressive consumption tax. When consumption is taxed instead of citizen’s earnings, savings and investments, the economy functions much better because taxes are levied on what we take out of the economy as consumers instead of what we put into the economy as producers.
The Fair Tax eliminates all federal taxes on the poor and gives the middle class a dramatic tax break. Each American citizen will receive a monthly prebate that will reimburse us for taxes on purchases up to the poverty line, so that we’re not taxed on basic goods and necessities. Instead, Americans will only be taxed on what we decide to buy, not what we happen to earn. We won’t be taxed on what we choose to save or the interest those savings earn. And, the tax will apply only to new goods, so we can reduce our taxes further by buying a used car or computer.
The Fair Tax also isn’t intended to raise any more or less money for the federal government to spend – it is revenue neutral. However, it doe broaden the taxpayer base by taxing the $1.5 trillion a year annual underground economy, eliminating unfair tax loopholes for the wealthy and by making taxpayers of 12 million illegals as consumers. Under the Fair Tax nothing is withheld by the government from paychecks, the IRS is abolished and April 15th becomes just another spring day!
The Fair Tax is progressive, but it doesn’t punish the American people for their success as does the current system. Nor does it punish the old fashioned virtues of hard work and thrift. Instead it rewards and encourages them. Expert analysis of the Fair Tax have shown that it lowers the lifetime tax burden of all of us-single or married; working or retired; rich, poor, or middle class.
Furthermore, many experts believe the Fair Tax can help solve the current financial meltdown by:
1. Increasing take home pay which will allow distressed homeowners to stay in their homes and satisfy mortgage obligations.
2. Attracting an estimated $12-15 trillion of foreign investment into our economy and
3. Greatly benefiting “Made in America” products resulting in rapid job growth.
And just as importantly, all of these effects do not require huge taxpayer investments.
In the coming months we will read about the Obama administration’s massive expansion of government. An expansion fueled by deficit spending and more than likely higher tax burdens on American families. That is exactly the wrong reaction to the problems we face.
To counter this, I hope you will join me in promoting the Fair Tax. Here are three ways to help today:
1. Forward this email and yesterday’s email to your friends and family. If they are interested in what they read, encourage them to sign up for email updates from the Vertical Politics Institute here. If you are a blogger, you have my permission to reprint both emails on your blog. Encourage your readers to spread the word and sign up for email updates at www.verticalpoliticsinstitute.com.
2. If you can afford to, please become a sponsoring or sustaining member of the Vertical Politics Institute with your contribution of $25 or $100 today. You can learn more about the benefits of membership here.
3. Check back next week at www.verticalpoliticsinstitute.com to sign up as a volunteer in our efforts to promote the Fair Tax.
I hope you are finding these emails informative. Next week I plan on switching gears completely to discuss the environment and why it is important for conservatives.
With deep gratitude,
P.S. You can help support the Fair Tax by promoting the Fair Tax to friends and family, contributing financially to the Vertical Politics Institute (learn about our membership opportunities here) and by signing up to be a volunteer very soon.