U. S Corporate Tax

Just like the current system of taxation, the fair tax also conceals the figure of sales tax being remunerated. Logically, an all inclusive tax in the prices of products, and income tax is also done on inclusive basis (not taken out of pay slips) is the same as the current system. This does not clearly explain the calculations of the tax. The fair tax notion and with prebate in place; fair tax becomes a kind of a taxation scheme just like the current. Some will be advantaged by probate and the rich would suffer by paying major portion of tax (Warwick2007)

The scheme is an income redistribution strategy: logically giving money back to the poor and middle class is not being fair. This situation would see the rich subsidizing the poor, and in the current situation, the social security is financed by paycheck taxes that are free from deduction of federal income tax. The fair tax and probate would allow some people who never made any payment towards the retirement program to access it free of charge through social security. These are just some of the many problems of the fair tax scheme that have been identified by critics.

The topic is open for discussion and critical analysis so as to come up with the best method of tax collection (Warwick2007). Conclusion The concept of fair tax is a major fraud that is founded on the fallacy that “federal theft” in the name of tax should be done in a just manner instead of doing away with it altogether. The proposal to eliminate the Internal Revenue Service by fair tax scheme seems to be a great initiative that all supporters of economic independence and free market economists would want.

Consumption tax in the proposed fairtax would replace the State retail sales tax on new products, and it would simplify the Internal Revenue Code in terms of language and calculations. References Boortz N & Linder J (2006) The Fair Tax Book; Saying Goodbye to the Income Tax and the IRS. HarperCollins Publishers. Boortz N, Linder J & Woodall R (2008) Fairtax. The Truth. Answering the Critics. Harpercollins Publishers Gingrich N, Haley & Tyler R (2008) Real Change. From the World that Fails to the World that Works: Regnery Publishing.

Graetz M. J (2008) 100 Million Unnecessary Returns. A simple, Fair and Competitive Tax Plan for the United States. Yale University Press. Ose A (2002) America’s Best Kept Secret. Fairtax. Give yourself a 25% Raise. AuthorHouse Pechman J. A (1985) A Citizen’s Guide to the New tax reforms. Fair Tax, Flat Tax, Simple Tax. Rowman & Allanheld: University of California. Hufbauer G. C & Grieco P (2005) reforming the U. S Corporate Tax:Peterson Institute Warwick N (2007) Fair Tax. A Wolf in Sheep’s Clothing:AuthorHouse