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A Real Fair Tax Policy Our tax code is unjust and overly complex and must be replaced.
First it is necessary to reduce federal spending so that the tax burden becomes smaller and more manageable. Current proponents of the fair tax system suggest about 25% is needed as a fair tax rate. Add 15% for social security tax, State Income Taxes and 6% state sales taxes and it is clear that the approximately 50% taxes, plus local taxes, are too much burden. By referring to Bob’s other issue discussions it is possible that federal spending can be reduced about 30% within a couple of years and further reductions will occur as the government regains compliance to the Constitution.
The tax code must be completely rebuilt as it is a bureaucratic nightmare that is unfair at best and an infringement of many constitutional rights at worst.
Bob favors the fair tax (consumption directed). Bob desires deductions for basic food clothing and utilities as the poor need these things and should not be taxed. With these deductions in place there would be no need for rebates and all people would be taxed equally. Bob believes that a fair tax implementation can be effectively implemented by 2011.
Bob also favors service fees for services provided where feasible. The biggest item for this is the highway system development and maintenance. Fuel usage is directly related to highway usage and should levy fees sufficient to maintain the highways and not more than is needed to maintain the highways.
As part of the fair tax program all business taxes should eliminated. This action would reduce the cost of all consumer products. This action would also make US produced products less expensive on the world market reestablishing our competitive position in world trade. This would significantly increase jobs and exports while reducing our foreign debts.
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