With the start of the new year, I thought it would be a good time to renew the push for the Fair Tax. The Fair Tax is legilation that will bring about an end to the IRS, the income tax, and every other federal tax and replace it with a National Sales Tax. Most of what I write below I posted in my very first blog, but we cannot lose sight of what has become a major grass roots effort througout the nation.

This is an item that I have been a big supporter for nearly 10 years now. The FairTax is a measure before the US House presented by my Congressman John Linder, HR 25. This is a very important piece of legislation that will get rid of the IRS and remove the income tax by repealing the 16th amendment of the Constitution. It will bring about the largest power shift from the government to the people since the Revolution.

What the FairTax does is instead of taxing your income, there will be a national sales tax of 23% on purchases of new goods and services. You will no longer have to pay Federal income taxes, Social Security, and Medicare from your income. You will be in full control of what taxes you pay and don't pay. 23% is what research shows it would take to fund the Federal Government at its current size.

Now, you may stop and wonder, wow 23% that is a lot. How can I afford 23% on top of what I pay now? First of course, you will have your full pay check. Secondly, there is already a 20-22% embedded tax in the price of products we buy now associated with the cost of manufacturing those products. That tax will no longer be in place as well so that portion of the price will be removed. In the end you will end up paying out of pocket about what you pay now with the imbedded tax.

You may also think, what if companies decide to keep that extra amount for revenue and not drop prices. This is where the Free Market comes in. A few businesses will drop there prices right off the bat, then fairly quickly, competitors will be forced to drop there prices in order to keep business.

There is also a monthly rebate that will be paid to every taxpayer for the taxes on food, clothing, and shelter up the the poverty line. In many cases that rebate could be more than one pays entirely in month, which removes their entire tax liability. To give a example of the rebate by 2006 standards a single taxpayer would get a monthly rebate of $188 and a married couple with 3 kids would receive $571 a month (www.fairtax.org). This rebate goes to every tax payer in the same amount.

There is so much more to this bill, but I would end up re-writting Neal Boortz's and Congressman Linder's book "The FairTax Book." To get more detailed information on this plan please purchase this bood at Amazon.com and go to www.fairtax.org for more information. Another sight to get involved at and discuss the Fair Tax is FairTaxgroups.com.

The FairTax is a very important peace of legislation that frightens the daylights out of politicians who are scared of losing the power they have now. As support grows, and it is growing, they will be forced to pay attention. Let's all get behind this plan. It is not about Republican or Democrat with this plan, it is about giving back power to the American People and giving them absolute econonmic freedom.