A 3 page consideration of the proposal to eliminate federal income tax and to replace it instead with a national sales tax. This paper contends that the fair tax is In reality the fair tax would not put the tax burden on lower and middle class Americans but rather would shift it to the wealthy where many feel that that burden rightfully belongs. Bibliography lists 4 sources.
Name of Research Paper File: AM2_PPtaxFair.rtf
Unformatted Sample Text from the Research Paper:
The proposal that we move to a "fair tax", however, is as controversial as any subject in our contemporary times. It has been contended, for example, that the fair
tax is really a regressive tax and it would shift the tax burden to those that can afford it the least. In reality the fair tax would not put
the tax burden on lower and middle class Americans but rather would shift it to the wealthy where many feel that that burden rightfully belongs.
The fair tax has many faces but one of the most prominent has come in the form of House Resolution 25 (HR25), a bill that went before Congress
in 2007 (Tidwell A6). The bill proposed the elimination of the federal income tax. While federal taxes would still be gleaned from everyones earnings, under HR25 those taxes
would be gleaned from the imposition of a national sales taxes (Tidwell A6). Not only would federal income tax be abolished, so too would FICA taxes, gift, estate, and
capital gains taxes (Tidwell A6). So too, of course, would all the tax code loopholes be eliminated that are so often used by the wealthy to shield themselves from
paying a fair share of the national tax burden. The fair tax would, in fact, results in many benefits for the
lower income and middle income tax brackets in particular. First, the annual burden of having to prepare a tax return would be eliminated. While for some the annual
tax return is an "EZ" affairs, for others it is a monstrous task accompanied by untold lost hours of work productivity trying to meet the reporting requirements of the federal