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Thursday, October 22, 2009

The time to eliminate the personal income , capital gains, estate, alternative minimum , Social Security, Medicare, self employment and corporation taxes has arrived. According to statistics calculated by Fair Tax.org, by instituting a national sales tax of twenty-three percent, all other taxes could become a footnote in history. A national sales tax of twenty-three percent would create revenue equivalent with all current federal taxes. Some argue the sales tax would harm lower income families. This problem is solved by mailing, at the beginning of each month, what is known as a prebate check to families whose income places them at or below the poverty level. The amount of the check would be determined by the number of persons in the family. The calculations are fairly complex but an example of this would be a family of four with a household income of $26,981.00. Under the National Sales tax this family would receive a monthly check of $702.00 to offset any sales tax paid during that month. This amount would increase over time because of adjustments for inflation. This measure would stimulate the economy more than any stimulus bill could ever hope to do. No income taxes would mean Americans keep and spend their own money as they deem appropriate. Tax returns would be eliminated entirely, saving billions of dollars of waste in preparation time and fees. Just imagine all of the former IRS employees that could patrol our borders and ports to keep America safe.

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