How to End the IRS

Written By: Lance Voorhees  |  Posted: Tuesday, June 22nd, 2010

Washington power brokers are on the move to repeal the 16th Amendment and revoke Congress' power to collect income tax. If successful, the IRS would be castrated and most agents would have to apply for a transfer or hit the pavement. Before you throw your hands up and shout, "Hallelujah, " you need to know how the Feds would replace the lost income. It's called a consumption tax - a 23 percent federal sales tax on retailed goods and services that is in addition to state and local sales tax. The Fair Tax Act before Congress is designed to fully fund the federal government, including Social Security, Medicare, etc. Like invisible ink, all federal deductions from your paycheck would disappear. Capital gains, self-employment, estate, gift and corporate taxes would fall by the wayside.

With the FairTax, there would be no tax liability on income spent up to federal poverty guidelines. An automatic monthly rebate to every American head of household eliminates any need to keep receipts. Foreign nationals and tourists without a Social Security card would pay the full tax, thus sharing our tax burden.
Economists say 23 percent is the magic number to make the FairTax a revenue neutral proposal. This means Uncle Sam would collect approximately the same amount of tax dollars without having to shoulder the expense and hassle of an IRS bureaucracy. The sponsors of the FairTax could be on the verge of hitting a grand slam - more jobs, higher wages, deflation and increased exports. This combination of elements would have a spectacular effect on our national and personal economies.

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