How the FAIRtax works
In the November 5th election 76% of Texas voters approved constitutional amendment Proposition 4 to prohibit the state from imposing any income tax. Proposition 4 started in the Texas legislature as HJR 38, to refer to the voters the question of a constitutional prohibition on an income tax. The measure amends the state constitution that requires a two-thirds supermajority in the House and Senate so support from both Democrats and Republicans was needed. The voting results by Texas politicians and voters show a strong rejection for a state income tax.
Texas Governor Greg Abbott declared in a victory statement, “This ban on such a disastrous tax (state income tax) will keep our economy prosperous, protect taxpayers, and ensure that Texas remains the best state to live, work, and raise a family.”
There are seven states without a personal income tax: Texas, Florida, Alaska, South Dakota, Wyoming, Nevada and Washington. Tennessee will phase out their state income tax on January 1, 2021.
For a fair tax to fund the federal government there is in the House Ways and Means Committee the FAIRtax bill, HR 25, that abolishes personal and corporate income taxes plus gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes. Federal revenue to fund government programs would be collected by a progressive tax system that includes a national sales tax and a monthly tax refund, called the Prebate, that un-taxes all legal residents up to subsistence level spending—a progressive sales tax. The FAIRtax also eliminates the threat to the insolvency of Social Security and Medicare and eliminates the need for tariffs to raise import prices to price levels of U.S. goods caused by the existing income/payroll tax system.
Steve Hayes, President of Americans for FAIR Taxation states, “The Texas message is clear to Texans and those looking to move there that we are not going to destroy our economy and our competitive advantage over other states by putting in an income tax. The FAIRtax has a similar message, America is going to abolish the income tax to stop destroying our economy and improve our competitive advantage.”
Learn more at Fairtax.org.
Florida Fair Tax Educational Association is a 501(c) (3) to inform and educate the citizens on alternatives to the current system of federal taxation based on the following principles: fairness, simplicity, transparency, pro-economic growth and revenue neutrality.
Florida Fair Tax Educational Association
2775 NW 49th Ave, Suite 205
Ocala, FL 34482