Americans For Fair Taxation

FairTax Act The FairTax Act of 2009 is HR 25 and S 296 The FairTax Act of 2009 is HR 25 and S 296 Abolishes the IRS within three years Abolishes the IRS within three years Allows You to Keep Your Whole Paycheck Allows You to Keep Your Whole Paycheck Reduces price of goods and services up to 20% Reduces price of goods and services up to 20% Un-Taxes the Poor Un-Taxes the Poor Simple and Revenue Neutral Simple and Revenue Neutral Invigorates the economy with private funds Invigorates the economy with private funds

What’s Wrong with the IRC Source: U.S. Dept of the Treasury, Cornell University Law School, Forbes Magazine and Wikipedia  Internal Revenue Code (IRC) resides in Title 26 of the U.S. Code.  The IRC of 1986 is the governing tax code as amended.  By 2005 amended over 14,000 times.  Updated 969 times by the 110 th Congress.

Embedded Taxes Source: The FairTax Book, FairTax.org  The aggregate of all goods and services are sold with an estimated average embedded tax of 22%.  Embedded taxes include: - Hidden Withholding Taxes - Hidden Withholding Taxes - Hidden Corporate Taxes - Hidden Corporate Taxes - Hidden Compliance Costs - Hidden Compliance Costs Production, Distribution or Services Cost Embedded Taxes

Source: FairTax.Org Tax Code, Rules and Regulations Page Growth 1913 to ,000 20,000 30,000 40,000 50,000 60,000 70,000 80, ,000 16,500 19,500 26,300 40,500 46,900 60,044 61,224 67,204 The Income Tax was a Flat Tax in 1913

Who Pays Taxes Corporate Taxes? Source: The FairTax book 1099 Div Tax Year 2008 Total $ Div Tax Year 2008 Total $0.00 x $100 $110  Corporations do not pay taxes, they collect taxes; only wage earners can pay taxes and through … - Higher product prices, - Decreased dividends and or, - Employee layoffs

Abolishes the IRS Enactment in 2010, FairTax in force in 2011 Enactment in 2010, FairTax in force in 2011 Taxpayers are still required to file their 2010 income tax returns by April 15, 2011 Taxpayers are still required to file their 2010 income tax returns by April 15, 2011 The IRS remains in place until September 30, 2013 to reconcile tax returns for the 2009 tax year The IRS remains in place until September 30, 2013 to reconcile tax returns for the 2009 tax year September 30, 2013 – No funding of the IRS beyond this date as specified in Sec. 301 of HR 25 / S 296 September 30, 2013 – No funding of the IRS beyond this date as specified in Sec. 301 of HR 25 / S 296

The FairTax eliminates all forms of income tax The FairTax eliminates all forms of income tax Individual income taxesIndividual income taxes Social Security taxesSocial Security taxes Medicare taxesMedicare taxes Self-Employment taxesSelf-Employment taxes Alternative Minimum TaxesAlternative Minimum Taxes Corporate taxesCorporate taxes Interest and Dividends taxesInterest and Dividends taxes Capital Gains, Estate and Gift taxesCapital Gains, Estate and Gift taxes When enacted, Recommends abolishing 16 th Amendment When enacted, Recommends abolishing 16 th Amendment When enacted, REPLACES the IRS Code, REMOVES embedded taxes When enacted, REPLACES the IRS Code, REMOVES embedded taxes Keep Your Whole Paycheck???

THE TAX SYSTEM TODAY The income tax flow down IRS IRS FORMS IRS CODE COMPLIANCE COSTS PREPARE FORMS SUBMIT FORMS IRS ????? Taxes what you earn

THE FAIRTAX 23 CENTS OUT OF EACH DOLLAR SPENT ON NEW PURCHASES AND SERVICES. 23 Social Security and Medicare Trust Funds: Trust Funds: 15 General Revenue Fund: 8 c / c / c / IRS IRS FORMS IRS CODE APRIL 15 HEADACHES HISTORY’S DUST BIN Taxes what you spend

2009 FairTax Rebate Schedule Source: Federal RegisterFamilySizeAnnualAllowanceAnnualRebate 2 Parent Monthly 1 Parent Monthly 2 Parent 2 Parent$21,660$4,982$415 $208 $ $25,400$5,842$487$ $29,140$6,702$559$ $32,880$7,562$630$ $36,620$8,423$702$ $40,360$9,283$774$ $44,100$10,143$845$ $47,840$11,003$917$709 >7 + $3,740 + $ $ $71.68

Effective Tax Rates: 2009

Which would you rather do? Which would you rather do? Pay an average of 33% of what you earn as income taxPay an average of 33% of what you earn as income tax Pay 23% on what you spend on new goods and services*Pay 23% on what you spend on new goods and services* * Remember: The rebate totally un-taxes you up to the poverty level Question?

Only Three Forms Required Request for Prebate Request for Prebate Employer Verification of salary for Social Security and Medicare Employer Verification of salary for Social Security and Medicare Retailer’s Quarterly Submittal of FairTax to the State Retailer’s Quarterly Submittal of FairTax to the State

Revenue Neutral and Progressive Changes from 160 Million Income Tax Payers to 300+ Million spenders Changes from 160 Million Income Tax Payers to 300+ Million spenders 50 Million Foreign Visitors Pay the FairTax 50 Million Foreign Visitors Pay the FairTax Illegal Immigrants and Criminals contribute ($2 Trillion) Illegal Immigrants and Criminals contribute ($2 Trillion) Prebate Un-Taxes the Poor Prebate Un-Taxes the Poor Saves $300 Billion in Compliance Costs Saves $300 Billion in Compliance Costs Collects $265 Billion Previously Lost to Tax Evasion Collects $265 Billion Previously Lost to Tax Evasion 7.6 Billion Man-hour Reduction in Compliance and Record Keeping Effort 7.6 Billion Man-hour Reduction in Compliance and Record Keeping Effort

Approximately $13 Trillion Exists in Dollar Denominated Off-Shore Accounts Approximately $13 Trillion Exists in Dollar Denominated Off-Shore Accounts Within Months, Money, Manufacturing, Jobs and Many Company Headquarters Would Return to the U.S. Within Months, Money, Manufacturing, Jobs and Many Company Headquarters Would Return to the U.S. The American Jobs Creation Act of 2004 is a Case in Point The American Jobs Creation Act of 2004 is a Case in Point U.S. -- THE Tax Haven

Things to Remember With the FairTax With the FairTax The Income Tax Code is TOTALLY REPLACEDThe Income Tax Code is TOTALLY REPLACED Collection is ONLY at the Point of Sale of New GoodsCollection is ONLY at the Point of Sale of New Goods and Services and Services Necessities of Life are Un-taxedNecessities of Life are Un-taxed Saves Social Security and Medicare for the Near TermSaves Social Security and Medicare for the Near Term Everyone Gets to Pay: no ExemptionsEveryone Gets to Pay: no Exemptions The Amount Collected is Revenue NeutralThe Amount Collected is Revenue Neutral $13 Trillion Dollars Returns to the U.S. Meaning Manufacturing Facilities, Jobs and even Company Headquarters Return and Revive our Economy$13 Trillion Dollars Returns to the U.S. Meaning Manufacturing Facilities, Jobs and even Company Headquarters Return and Revive our Economy FAIRTAX: The Real Stimulus Plan! FAIRTAX: The Real Stimulus Plan!

Things to Do Contact Congressman Parker Griffith Contact Congressman Parker Griffith Huntsville and Washington OfficesHuntsville and Washington Offices E.mail, Post Cards are BestE.mail, Post Cards are Best Respectfully Ask Him to Co-sponsor, Support and Promote the FairTax Act of 2009, H.R. 25Respectfully Ask Him to Co-sponsor, Support and Promote the FairTax Act of 2009, H.R. 25 Contact Senators Sessions and Shelby Contact Senators Sessions and Shelby Huntsville and Washington OfficesHuntsville and Washington Offices E.mail, Post Cards are BestE.mail, Post Cards are Best Respectfully Ask Them to Co-sponsor, Support and Promote the FairTax Act of 2009, S. 296Respectfully Ask Them to Co-sponsor, Support and Promote the FairTax Act of 2009, S. 296 Talk to Friends and Neighbors to Spread the Word Talk to Friends and Neighbors to Spread the Word

Source: U.S. Dept of the Treasury and Forbes Magazine Become an informed taxpayer!  Become an informed taxpayer!  Sign the petition at  Join Alabama Fairtax at  Get involved with your local FairTax Group.  Pass the word at every opportunity.  Advertise with signs and stickers on your car.  Write letters to the editor and other publications.  Do not accept … “It Won’t Happen”. Other Things to Do