Wednesday, April 15, 2015

Graves: Why I am co-sponsoring the Fair Tax Act

(From Sixth District Congressman Sam Graves)

This Wednesday is the deadline for federal tax filing. As another April 15 passes with our tax code as confusing as it’s ever been, Washington must use this opportunity to highlight our desperate need for tax simplification.

According to the IRS, Americans spend over $168 billion and 6 billion hours each year complying with the tax code. The real impact of the tax code on Missouri families and small businesses, however, is not specific to any day or season. Small businesses make tax-related decisions throughout the year that impact nearly everything they do, from planning budgets to hiring new employees.

Just this year, the Taxpayer Protection Alliance found that nearly half of all small businesses will spend $5,000 preparing federal taxes, and 27 percent will reportedly spend over $10,000.

But perhaps what’s worst of all, the IRS is now responsible for enforcing Obamacare. The IRS already has too much control over our lives. Given the recent controversy over its targeting of conservative political groups, it has a dangerous lack of oversight as well. It is clear to me that we need tax simplification in this country now more than ever.

That is why I am a co-sponsor and ardent supporter of the Fair Tax Act. This tax simplification proposal would essentially eliminate the IRS and our tax code entirely, replacing it with a pro-growth national consumption tax. The Fair Tax promotes freedom and economic opportunity, ensuring that small business owners can focus on helping our economy grow, not complying with the IRS.

Small businesses and individuals alike are put at a huge disadvantage when asked to comply with a tax code that even accountants now struggle to understand. Please know that as your representative in Congress, I will continue to support the Fair Tax and push for tax simplification as a top national priority.


Anonymous said...

Yes.. because I'm sure wall street isn't involved with this legislation At all.. give me a break, this is just another piece of Republican scam legislation.

Anonymous said...

This jackass is going to sponsor anything that will allow business a tax loop hole and screw the middle class. Why don't you Republicans come up with a plan rather than giving us your twisted reasoning as to why this won't work. Funny that Romney Care is good enough for Mass. but the Affordable Care Act is no good for all. Try to give the real facts instead of pushing your fiction and lies.

Anonymous said...

The Fair Tax is NOT fair. Sales taxes are regressive and always hurt the lower & middle income people disproportionately more. While I'm sure Graves knows what he is supporting, many Fair Tax supporters think it is a Flat Tax which is incorrect. Once again Republicans support a tax change that is detrimental to the majority of people in this country. We must say NO loudly.

George Thompson said...

Anonymous is correct that the "fair" tax is a regressive sales tax which hurts "lower & middle income people disproportionately more". However it does give corrupt politicians more power (they set the rates), which is why they love it. A basic rule of taxation is that if the goal is to discourage an activity, tax it. This is the justification for all the 'sin' taxes. So why on earth would a self-styled conservative republican wish to tax sales? Herman Cain had much to recommend him in the most recent Republican presidential nominee competition. However, he admitted that one of the three legs of his 9-9-9 tax (flat tax) was intended to nudge us over to a 'fair' tax. So I looked elsewhere. I don't know why the Holy Bible is so condemned by the powers that be since it is chock full of sensible economic guidance. God Himself imposed a flat tax of 10% (a tithe). A flat tax hits everybody the same. If a person makes $10 the tax is $1; if the amount made is $10 million, the tax is $1 million. True, the rich person can afford that million more than the poor person can that dollar, but the poor person is paying to be a citizen, and being a citizen of the United States is still valuable, else many of those folks would not be risking their safety to illegally cross our borders.

Stephen Eldridge said...

“FairTax” (“FT”) is a Fraud ! We need a 10% “Tithe” Tax


FT would give the poor a NET Tax welfare check and give them free SS/Medicare. Many would depend upon an important monthly federal Prebate check.

FT produces a 40-70% (including S/L) sales tax that would spark a taxpayer rebellion destroying our economy. The 70% assumes 30% evasions/avoidance (FT incredibly assumes ZERO).

IN ADDITION, FT contains several HIDDEN TAXES. Another 12+% is hidden by having federal + S/L govts paying FT – they must get that money from you. FT increases the federal budget for SS & federal pension COLAs (almost 30%) and “invites” fraudulent new SS benefits.

A new home will cost nearly 40% more (FT +S/L taxes) – Banks won’t lend on sales taxes; higher down payment.
The NEW IRS (STAA) may be more invasive - it may audits consumers; we may have to file an “Annual FT Summary”.

The FT is a Trojan Horse for a NEW Income Tax – we’ll wind up with BOTH a NEW Income Tax AND FT.

Tell your representatives in Congress you want my 10% Flat Income Tax - No Deductions, No Exemptions, No Credits (HR 1040 with my amendments).