BHO get behind this for real stimulus..............

The FairTax has been reintroduced for the 110th Congress. It is H.R.25 in the House and S. 1025 in the Senate. NTU has endorsed theFairTax since 1998 and continues to work for its adoption. Benefits of the FairTax: the FairTax plan brings fairness, transparency, and efficiency to our unfair, complex, and confusing Tax Code. The FairTax rewards job creation, hard work, and individualresponsibility. By doing away with payroll taxes, companies can afford to hire more employees and outsourcing looks less attractive. Bytaxing consumption instead of income, individuals are provided with a strong incentive to work hard because they keep more of what they earn. By taxing spending, the FairTax allows us to control how much tax we pay depending on our individual lifestyle choices. The FairTax ensures that all Americans pay their fair share of taxes. The IRS currently admits to a 25 percent non-compliance rate with theTax Code, often done unintentionally. By placing the tax at the pointof sale, no individual or special interest group could evade taxes with the help of an expensive tax attorney or well-heeled lobbyist.

Furthermore, we could stop making criminals out of ordinary Americans who prepare their tax returns incorrectly by mistake. How the Plan Works: the FairTax proposal is a comprehensive revenue plan that would eliminate most major federal income and payroll taxes, including personal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes. On payday, every American would receive 100 percent of his or her paycheck, minus any state income taxes. These federal taxes would be replaced by a national retail sales tax. Under the FairTax, the national sales tax rate initially would be 23 percent, with adjustments made to the rate in subsequent years. The FairTax is progressive. To make this system fair for low-incomeAmericans, all taxpayers would receive a monthly "prebate," so no one would pay taxes for consumption up to the poverty line. The national retail tax would only be collected on new purchases, making "used" purchases tax-free. Additionally, business purchases would be exempt from the tax, thereby eradicating corporate tax compliance costs currently hidden in retail prices.