Gary Johnson: ‘Abolish the IRS’
Watch Dog – Rob Nikolewski – 7/14/2014
“Let’s abolish the IRS, let’s eliminate income tax, let’s eliminate corporate tax, let’s balance the federal budget and if we need a tax, it can be one federal consumption tax,” Johnson said.
But how would that work?
Instead of collecting taxes from various sources, a consumption tax works from a single point of purchase. It taxes people when they spend money on any given item or service. By eliminating income tax, sales tax and others, the idea is that overall price would not go up and may, according to its advocates, actually decrease the overall tax burden on citizens.
“I think a great starting point for a debate and discussion over a national consumption tax is, let’s start with the Fair Tax, legislation that has been written up and I think signed up on by 80 congressmen and women,” said Johnson.
“Why would any company, anywhere in the world, locate anywhere but the United States, given zero corporate tax?” Johnson said. “The entire world will change their tax structure to emulate no income tax, no corporate tax, no more filing.”
The Our America Initiative, led by Honorary Chairman Gary Johnson, advocates abolishing the IRS and replacing it with a simple system of collecting necessary government revenues when money is spent, not when it is earned. Shifting to a revenue-neutral consumption tax will put earners and businesses back in control. Taxes won’t be withheld from paychecks. Instead, they will only be paid when an individual or business spends money, and except for a “prebate” to exempt spending for basic necessities, EVERYONE will pay the same rate.
No winners. No losers. Just a simple tax that is not only fair, but which creates incentives to earn, save and invest. And by eliminating all the loopholes, benefits, etc., we won’t need a massive IRS. Also, half the lobbyists and special interests in Washington will probably disappear.
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