H.R.25 – Fair Tax Act of 2013

pystew gives a great summary of HR25, the purported “Fair Tax Act of 2013”

New NY 23rd

H.R. 25 – Fair Tax Act of 2013

The House Ways and Means Committee may soon vote on H.R. 25 “The FairTax Act of 2013.” If approved, it may then go to the House for debate and possibly a vote. Tom Reed, who is a member of the Ways and Means Committee, is not among the 71 cosponsors, but he is known to favor proposals of this sort.

Fair tax is fair in name only. HR 25 would replace the current graduated income tax and estate tax with a national sales tax.  The certain effect of this would be to make the rich richer and the poor poorer at a rapid rate.  This might be a good time to write to Tom about this.

CRS Summary of HR 25:

  • Repeals the income tax, employment tax, and estate and gift tax. Redesignates the Internal Revenue Code of 1986 as the Internal…

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2 thoughts on “H.R.25 – Fair Tax Act of 2013

  1. Stephen C. Eldridge September 30, 2013 / 12:47 pm

    At the July, 2011 Hearings before the House Ways & Means Committee, Dem. former W&M Chairman Charlie Rangel nearly choked on the $1T new “ENTITLEMENT” (i.e., the Prebate). A Dem Rep. from NJ called he FairTax a “Fairy Tale”.


  2. Stephen C. Eldridge September 30, 2013 / 12:44 pm

    The Fair Tax is a FRAUD – What we need is a 10 Tithe!

    I am a retired CPA, with no financial interest in ANY tax system. I can support every comment I make with much detail.

    The so-called “Fair Tax” (“FT”) is a fraud – it is Karl Marx on steroids AND a Bernie Madoff financial scam.

    In their own words, FT proudly advertises that it INCREASES WELFARE.. The Prebate is advertised as merely repaying the poor for any FT they pay, but actually would pay them far more than any FT they might pay and also gives the working poor free SS/Medi.

    The FT hits us with a 40-70% in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our 70% retail-sales-sensitive economy. 40% = 30% FT + e.g., 10% State sale sales tax and 70% is the rate needed at a sample 30% FT evasion rate (the FT incredibly assumes ZERO evasion and ZERO intentional reduction in spending).

    IN ADDITION to that 40-70% tax, the FT contains several HIDDEN TAXES. FT’s 30% rate is really 42+%; the 12+% is hidden by having fed + S/L govts paying FT – they must get that money from you. The initial 30% rate is 1-5% short and that plus any other revenue shortfall will have to be made up by raising more FT (or a NEW Income Tax), the fed budget for SS will rise because of the FT – SS COLA of almost 30% and fraudulent new SS benefits – and more FT (or a NEW Income Tax) we be required to fund these.

    The NEW IRS will be far worse, far more invasive than today’s IRS – we may well have to file an “Annual FT Summary”.

    We may well wind up with BOTH a NEW Income Tax AND the FT.

    What we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate.

    Call your representatives in Congress and let them know that this is what you want.

    For supporting details, call Stephen C. Eldridge tel. 423-532-7337


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