By Patrick R. Burkett
March 06, 2013
The Social Security and Medicare Trust Funds will become insolvent within the next few years due to high payouts and low income. The Fair Tax, HR25, pending in the U.S. House Ways and Means Committee, would resolve this problem.
The Fair Tax eliminates income and several other taxes, including the current payroll tax and the current Medicare Part B premiums which fund their respective Trust Funds, but which are insufficient to keep the Trust Funds solvent. The Fair Tax replaces all of these taxes with a consumption tax, which will provide a more stable source of funds than income based taxes because spending is less volatile than income during the ups and downs of the business cycle. And it will receive funds from a larger tax base because it taxes all who spend to purchase new goods and services above the poverty level, whereas only about 50% of people pay income taxes. The 23% consumption tax rate will be revenue neutral with the taxes eliminated and will be sufficient to fund all government activities, including Social Security and Medicare, at current levels.
Please join in making this a reality by indicating your support at the http://www.fairtax.org website and contacting your Congressional Representative.
Patrick R. Burkett
Received February 28, 2013 - Published March 06, 2013
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