What is the Fair Tax Plan?

If you are a working American Citizen, you pay income tax. We are so used to the income tax that we do not even look at that part of our pay checks anymore. When we discuss our pay with friends or family we refer to it as our take-home pay not what we actually earn.

Next time you receive a paycheck stop and really look at the details. There is federal income tax, state income tax, and some areas have local income tax. Do not forget about Social Security tax and Medicare. Now, imagine that the income taxes were erased from your paycheck. That's a big difference, is it not?

Actually getting the money you earn. That is the reason I am an advocate of the Fair Tax Plan. We get to keep the money we earn, the government still receives revenue, and we can even disband the Internal Revenue Service. Everybody wins. Except maybe those guys who work at the IRS, but I am sure they can get jobs as financial advisors for everyone else when they actually receive the money they earned and they put it into use.

Income tax is a tax on the income you earn when you go to work or other event such as the sale of property. The federal government's share is based on your income and family size. The state government's share is also based on income and family size, but not every state imposes a state income tax. This includes Nevada, South Dakota, and Wyoming.

The income tax was created by the ratification of the sixteenth amendment in 1913. In the beginning there was no withholding of taxes. You received a yearly bill and you wrote your check like a good citizen. You knew exactly how much you paid. The practice of withholding went in and out until World War II when the government needed the cash flow to fund the war. Today we are so used to it we do not even bother to look at how much is being taken out.