There is a surefire way to eliminate the IRS and not ever be required to file another income tax return; or corporate return for that matter! Every dollar you earn you would get paid; no taxes withheld. It is within your power to make this a reality!

There is a tax bill before Congress right now that would get rid of the IRS and eliminate corporate taxes, personal income taxes, estate taxes, the death tax, etc. It’s known as the FairTax Act and I am serious when I tell you not only is it fair, it would definitely solve the United States’ economic woes overnight. First I do want to say that The FairTax is resisted by a vocal minority exactly because it will do what it claims in abolishing the IRS, the greater than $300 billion in tax return filing costs, and the insidious corruption of the current system. Here’s a brief overview of how it works.

What kind of tax is the FairTax?

It is a consumption tax that is charged when you buy something new. It is a transparent tax: that means the tax will be on your receipt in plain English so you can see it.

Right now you are paying the same taxes when you buy something, but the taxes are hidden in the cost of the item all along the manufacturing line from the raw materials to the packaged end product. Those are called embedded taxes because they are not seen on your receipt. Under the FairTax Act, you would be paying the exact same price for a gallon of milk, but the gallon would have a lower shelf price and the consumption tax would be added at the cash register and printed on your receipt.

Is the FairTax really fair?

Absolutely. The FairTax is very fair. In fact, it is really much more fair than the income tax. You get to control how much tax you pay simply by deciding what items you are going to buy. Wealthy people buy more expensive items that other individuals. The FairTax will tax them on those purchases.

Illegal aliens and tourists, who pay no taxes now, would pay their fair share of taxes every time they purchase something. Someone who gets cash income and doesn’t report it on their income tax return would have to pay taxes on their income when they spend it at the cash register. Yes, the government would continue to get as much tax revenue as they do now, but it would cost us a lot less to run the government.

The FairTax would have a very positive effect onAmerica’s economy.

By removing the tax penalty for working harder and producing more income, U.S. companies will experience a new era of economic growth and business expansion. Hidden taxes are history, U.S. citizens can save more, and businesses invest more. As proposed, the FairTax would bring U.S. companies back home because it would not be an advantage to have U.S. companies in foreign countries paying low wages to workers for jobs that Americans should be doing here at home for fair wages.

Workers would bring home all that they earn.

It would put more money in the pockets of every American by removing the income tax. There would be no deductions from the amount you earn to pay federal taxes, Social Security or Medicare. If you earned $100 you would get paid $100. Businesses would no longer be saddled with paying added taxes on employee wages for Social Security/Medicare.

The FairTax has a positive effect on Social Security/Medicare.

Under the FairTax Act there would be plenty of money available for both these programs. Like the rest of the federal spending programs, Social Security would operate exactly as it does today, with the exception that its funds would come from a consumption tax, rather than a payroll tax.

Companies that employ workers would continue to report the wages they pay to individual employees to the Social Security Administration simply for the calculation of benefits. The move to a reformed Social Security system is eased while ensuring there is sufficient funding to continue promised benefits.

The FairTax protects low-income and lower-middle-income individuals and families.

Under the FairTax Plan, poor people pay zero net FairTax up to the poverty level! Every citizen or household receives a prebate check each month equal to the FairTax paid on essential goods and services [groceries and medicine], and every wage earner is no longer subject to the most oppressive tax of all, payroll taxes.

The FairTax takes careof senior citizens.

The fFairTax does a good job of protecting senior citizens. Low-income seniors get better benefits under the FairTax than underthe current income tax system. Some people incorrectly believe that those who live exclusively on Social Security don’t have to pay any taxes. Those people may not know it, but they are paying the hidden corporate income taxes and employer payroll taxes whenever they buy anything. With the FairTax, seniors pay $0.23 out of every dollar they choose to spend on new products. In addition, seniors, like everyone else, receive the monthly prebate check, in advance of purchases, for taxes paid on the cost of necessities.

Yes, The FairTax CAN really be passed into law! The FairTax has undertaken to build grassroots alliances and a grassroots movement to support the effort. But, this will only happen when the American people rally behind the effort, throw off the chains of income tax bondage, and demand that Congress correct 90 years of wrongs done by the income tax.

Do this RIGHT NOW to make sure this bill gets passed.

First, sign the FairTax on-line petition at the FairTax.org website to let Congress and the President know that you demand this bill gets passed into law. When visiting the FairTax website, look at the congressional scorecard to find out if your state congressional representatives support this bill. If they don’t, write them a letter and demand they vote for this bill and that you will be monitoring this scorecard to see how they voted come election time.

Second, buy and read The FairTax Book: Saying Goodbye to the Income Tax and the IRS by Neal Boortz and Congressman John Linder. Read it so you understand what this bill actually says. The book is easy to understand. Then pass it on to a friend to read and ask them to pass it on, too.

Sandra Simmons, President of Money Management Solutions, has years of experience helping company owners and families manage their income to reach their financial goals. To learn more about the Money Management Software she created, visit her website and watch the FREE 5-minute demo video at www.MoneyMgmtSolutions.com

- Sandra Simmons