Elimination of the IRS is the Only True Tax Reform Proposal for America

President Bush has said that it is time to address income tax reform. The Fair Tax Act deserves a serious look.
House Speaker Dennis Hastert wants it brought to the floor for a vote. Majority leaded Tom DeLay supported it. Over fifty-five Representatives are cosponsoring it presently and more are jumping on board.

The Fair Tax Act (HR25/S1493) proposal covers three basic areas: 

** Payroll taxes:
Each payday, I lose 17.5% of my paycheck to taxes (10 % to income tax, 6.1 percent to Social Security, and 1.4% to Medicare). This fair tax proposal would let me keep that entire 17.5%. 

My employer would no longer have to pay corporate income taxes or the employer portion of my Social Security and Medicare taxes (another 7.5% of my salary). 

Most citizens don’t realize that with our present system, corporations effectively don’t pay income taxes—only consumers do. Corporations and their suppliers simply pass on their taxation costs up the line until the final tax payment is made by the consumer himself through the increase in price of goods bought. This has been true since the income tax was initiated around 90 years ago and will always be true as part and parcel of the very system of income taxation itself.