Changing Tax Code Could Resolve Issues

Friday, May 21, 2010

Changing our tax code may solve the immigration crisis.

The passing of the Arizona law, which is a supplement of the current federal law, has sparked attention to the already heated debate of illegal immigration. One of the main arguments on the opposing side is that illegal immigrants do not pay taxes or cause an unnecessary burden on the economy and the health care system providing medical services to illegal immigrants.

According to a report in The Washington Post, “Households headed by illegal aliens imposed more than $26.3 billion in costs on the federal government in 2002 and paid only $16 billion in taxes, creating a net fiscal deficit of $10.4 billion” (Fitzgerald, 2004, p. A21).

A proposed solution to handling the illegal immigration issue and rising costs would be to implement the Fair Tax (HR 25, S 296), which is a flat tax on all items that are sold or bought. The idea is to impose a 23 percent tax “only on what we choose to spend on new goods or services, not on what we earn” (Fair Tax 2010).

The resulting law would eliminate several issues with illegal immigrants to include under-the-table payments, not collecting a payroll tax, which is billions of dollars of uncollected payroll tax revenue.

As Americans, it is our duty as citizens to pay taxes; however, it is the government’s duty to make laws that are for the good of every taxpayer. I believe the time for change is at hand. The current antiquated IRS tax code should be changed and would resolve two troubling issues at one time, illegal immigration and the rising deficit.

Jonathan Dozier

Southern Pines

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dustyrhoades 1 year, 8 months ago

"All items"--does this include raw materials and parts that are are later assembled by other companies (e.g. automobiles)?

Isn't this just the dreaded VAT by another name?

Woody 1 year, 8 months ago

C'mon Dusty, I find it HARD to believe that you haven't googled "fair tax" even once. Let me enlighten you:

What is taxed?

The FairTax is a single-rate, federal retail sales tax collected only once, at the final point of purchase of new goods and services for personal consumption. Used items are not taxed. Business-to-business purchases for the production of goods and services are not taxed. A rebate makes the effective rate progressive.

Only an IRS employee, Tax Accountant or Tax attorney would think that this is a bad idea.

Exactly what taxes are abolished?

The FairTax is replacement, not reform. It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.

Only an IRS employee, Tax Accountant or Tax Attorney would think that this is a bad idea.

None 1 year, 8 months ago

Jonathan Dozier's article is on target with resolving unfair taxation by government: Federal, State and local. "Not to mention the Social Security tax, the Medicare tax, the self-employment tax, the alternative minimum tax, the gift tax, capital gains taxes, tax audits, and some major headaches every Arpril 15th", as quoted by Neal Boortz and Congressman John Linder (The FairTax Book).

Fairtax Bill (HR 25) was introduced in July 1999 by Congressman John Linder. The bill was held up the last session by then Chairman of the Finance Committee Rep. Charles Rangle (D) New York. Both parties have obstructed or delayed open discussion on the floor for obvious reasons: thousands of IRS employees would join the ranks of the unemployed, companies who file individual tax returns would be out of business, accounting firms and accountants would serve no useful purpose.

Many oppoinents point to England where petrol prices are about $9.00 a liter; but they pay no income taxes. Now the government is encouraging passage of VAT (value added tax) in an effort to subrogate an additional tax revenue masked as a Fairtax initiative.

Governments continuous financial drain on the American people must stop before we become a communist country where the government will provide what they think we need to survive. Taxation begins with laws requiring payroll deductions, point-of-sale taxes, taxes on property for years of possession as opposed to ownership ~ one never owns property ~ Moore County government owns your property. As long as the rent is paid to the tax office, you can occupy your property.

Until the American people elect those who will make changes to out dated laws, we will sooner than later come to the scienaro of "just take it all" so we know we are broke! As opposed to divviting it out at the check out line.

None 1 year, 8 months ago

jimt, Many of your questions can be answered on Fairtax.org. As I understand the legislation one is taxed on purchases as opposed to income. It eliminates Congressional legislated tax loopholes for contributing supporters. In the words of one well known congressman, "we have to reward our supporters by allowing them to have in place legitimate tax deductions".

As far as cars are concerned, we continue paying taxes as long as we have them in our possession, when they are sold, and purchased again. It's a vicious tax cycle on just one tangible product.

Under HB25 everyone pays based on their purchasing power.

Weedhopper 1 year, 8 months ago

FairTax is a hoax and will never get out of a congressional committee. Who thinks having the defense department pay a tax on every tank, ship, bomber and bullet is a good idea? And the proposed tax rate is a joke. Bush administration economic advisors said that the tax would have to be 50% or more to break even with the income tax. State taxes would add to that total. And who's going to pay for Social Security?

This country became the wrold's preminent economic power under a progressive income tax. Until someone can clearly explain how the FairTax will do better, I'll stick with tried and true.

FairTax is a major league flim-flam ...

None 1 year, 8 months ago

@Weedhopper: Not really...perhaps if you were to read a copy of The FairTax Book [Regan Books) by Neal Boortz and Congressman John Linder who proposed the legislation, you may find your questions would be answered. Have you visited Fairtax.org

You may find that a fair tax is the only option for the upper 3% of the most wealthy Americans who pay the lions share of taxes.

jayoppa 1 year, 8 months ago

Toda: You are correct with your information and I do agree with you on all your posts. However, Weedhopper may be speaking like many of the other American's who are frustrated with proposed laws that may save the day. I too support the fair tax and believe that it has a great deal to offer. I believe that politicians stay away from this is because they do not want to do the research and bet their careers on something that will not pan out. Everyone loves a winner and look what the failed immigration bill did to John McCain and his popularity. Great points!!