50 Reasons I Like the Fair Tax - Part 4
Kenneth J. Van Dellen (with help from friends) 1/22/05

Reasons 31-40

• By removing the embedded tax from American products, it makes them more competitive with imports here, compensating for the low cost of imported products from which taxes have been removed before exportation to the U.S.
• It encourages investment in companies located in the U.S., thus providing a home for money already in the U.S. and attracting more. The U.S. will be the most attractive tax-free haven in the world for doing business.
• It encourages repatriation to the U.S. of money held by U.S. individuals and companies now in foreign countries, with no tax consequence. American companies will return from offshore and overseas.
• It results in a windfall profit, likely to be invested in job-creating businesses, for many of those holding taxable corporate high interest bonds at the time of passage of FairTax, since the bonds will not be taxed under the FairTax. (Currently, a higher interest rate is usually paid to entice investors to buy the corporate bonds rather than go with the lower interest, but tax free, municipal bonds.)
• It results in Federal Reserve rates being based on current consumption, which is rather stable, instead of future earnings, which are less predictable, resulting in surer inflation prevention.
• It reduces production costs for farmers and other subsidized businesses, leading to a reduction in subsidies, thus reducing the federal budget.
• It moves many individuals now providing tax advice (return preparation, advice, accounting, planning, and records maintenance) into an expansive economy where they will be producing goods and services. There they can add to the standard of living of all Americans and likely earn more than they do currently, instead of shuffling paper for the government (and not contributing anything economically to society).

FairTax and Churches and Non-profit Organizations

• All contributions to Churches and other non-profit organizations are made tax-free. These organizations no longer will bear the expense of filing tax returns with the IRS and paying their half of Social Security and Medicare payments for employees. In order to purchase goods and services tax free they will just have to apply to the state sales tax authority for a qualification certificate as a bona fide not-for-profit organization operated exclusively for religious, charitable, scientific or educational purposes.
• It restores to churches and non-profit organizations the 1st Amendment right to engage in free speech, without fear of losing their tax-free status.

FairTax and Rights and Freedoms

• It restores the 4th Amendment, protecting against unreasonable searches and seizures, from which the IRS presently is exempt.

Coming in Part 5: more Rights and Freedoms; Government and Educational Entities; Politics; and the Environment.

For more information go to www.fairtax.org