Fair Tax Act Essay Example | Topics and Well Written Essays - 750 words

Fair Tax Act - Essay ExampleThe Fair task operation (HR 25, S 13) is legislation which not inclined to any of the political parties in the United States. The act will abolish all capital gains, friendly security, self-employment revenue enhancementes, Medicare expenses income taxes levied on corporations and individuals by the federal government, and replace them with an uncomplicated sales tax. The states sales tax authorities administer the retail sales tax that enacted by the federal government (Barbra, 2011 p 22).The system of the fair tax equates all persons and it will enhance efficiency, accountability, and a lasting solution to the disparities in the original system of taxation. With the enactment of the fair tax, it is easier to monitor the activities of the government agencies mandated to carry out the roles of collecting taxes. For a long time, the various agencies of the government entrusted to levy taxes on pipeline corporations and individuals have misused the aut hority granted by the constitution. The act came to minimize the abuse of powers by the state authorities to ensure just and reasonable treatment of all citizens (Barbara, 2011 p 79).Trade and other commercial activities will occur in a favorable environment. The act puts into consideration both exports and imports exports should not be taxed because their consumption occurs outside the United States. On the other hand, goods imported to the United States undergo taxation since consumption is in the domestic markets. Thus, the act will induce sure that the goods locally produced in the United States become more competitive both in the United States and international markets (Barbara, 2011 p 79).The fair Tax act plan has an impact on the cost of education. The act can be regarded as the only proposal of tax reform that supports education, compared to the current law on taxation. As a matter of fact, the plan cuts by half the cost of education to American families making education a ccessible to as many Americans as