What is the FairTax Plan? The FairTax Plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax – administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system. Why does this business support the FairTax? This business supports the FairTax Plan because we recognize its widespread potential. It not only effectively and efficiently eliminates our tax burden, it also allows our employees to take home their entire (federal) paycheck and reimburses them with the tax money required to help them purchase their necessities. In short: 0% Corporate Income Taxes, 0% Personal Income Taxes, and 0% Payroll Taxes What are the effects of the FairTax on our Business? Because the FairTax eliminates all Corporate Income Taxes, Personal Income Taxes, and Payroll (FICA/SECA) Taxes, our tax burden would be completely lifted off of us; relieving the stress of having to comply with over 80,000 pages of tax code, hiring tax attorneys and accountants specifically for tax compliance purposes, and having to deal with the IRS on a quarterly basis. Additionally, we will no longer be required to remit our portion (7.65%) of each employee's FICA taxes. That is an additional $7,650 in OUR corporate account for each $100,000 we pay out in payroll. What will the FairTax require our business to do? 1) On a monthly basis, our business will have to report the sale of NEW goods and services to our own State Agency (who will, in turn, report those sales to the US Department of the Treasury). That's right, NO MORE IRS! NOTE: For this we will be paid one-quarter of 1% of the tax remitted. 2) On a regular basis (as determined by the SSA), our business will have to report all wages and other information to the Social Security Administration). How else is our business affected? The FairTax eliminates the Estate and Gift Taxes. "Each year, many small businesses and farms must be sold out of the family to pay estate and gift taxes when the founding generation dies". Under the FairTax, we feel much safer knowing that our business can continue on when we are ready to retire. For more information, please take a few minutes to read http://FairTax.org/Business and visit http://FairTax.org We hope that every business owner who comes across this blog post will Copy&Paste this message into a blog post of their own (as we have done).
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