Shannyn Griffin. Professor Jones. English 1102, Section
1903 WordsMay 1, 20178 Pages
English 1102, Section 22
29 April 2017
Replacing the Current Income Tax Structure with the FairTax Plan
It is the general agreement of tax payers everywhere that the current tax system is way too complicated. You either need to have a certified public accountant help you do them or a specialized tax program to walk you through it. Not only that, but the costs associated with having someone prepare your taxes or buying the specialized computer program needed to navigate the myriad of entangled tax codes and laws can become quite expensive. But it is not only expensive for us, the individual tax payer, but it is also expensive for businesses and it is extremely expensive for the Federal government. Not…show more content…
The President placed upon the panel stipulations as to what types of recommendations could be made, such as reducing the cost of compliance, having to base at least one recommendation on the current tax structure and that all recommendations had to be revenue neutral, meaning they had to be able to collect the same amount of taxes that the government was projected to collect under the current tax structure. Unfortunately, due to those stipulations imposed upon the panel, they were limited in what they could recommend. Even in today’s environment, in a news article by Fox Business, President Trump has recently talked about “a major” tax reform.
Unfortunately, all of these reforms are simply trying to patch up the current income tax system when what is really needed is a complete replacement to a new tax system. One of the better alternative tax systems being proposed is the National Retail Sales Tax (NRST), also known as the FairTax.
The FairTax plan, which was originally introduced back in 1999, was reintroduced by House Representative John Linder and Senator Saxby Chambliss in 2007. It proposes to replace the current income tax system, which includes personal income, corporate income, estate and gift, capital gains, alternative minimum tax, Social Security, Medicare, and self-employment