Fair Tax Supporters Keep Momentum Going
It's been a little more than a month since New Jersey Congressman Scott Garrett became the first Representative in the Northeast to co-sponsor the Fair Tax bill, and local supporters are keeping that momentum going.
Fair Tax New Jersey Treasurer John O'Rourke of Brick says they're working to educate the public on exactly what HR-25 would entail, and how it would differ from the current tax system. He says far too many Americans think getting a tax refund check means they're coming out ahead.
"These people who get money back don't realize that that money that's taken out of their pay before they even see it is receiving money they could have put in their savings account," O'Rourke said. "They're receiving no interest."
O'Rourke says eliminating federal income and payroll taxes would allow Americans more control over their own paychecks and eliminate what he calls "invasive practices" by the IRS. He'd also like to see Fair Tax legislation at the state level.
"What they <the states> could do is lower the present sales tax rate to 5.4% with a prebate," O'Rourke said. "It would eiminate the state income tax, it would eliminate the estate inheritance tax."
The prebate, also known as the Family Consumption Allowance, is designed to cover taxes on necessities like food, clothing, and shelter up to the Federal Poverty Level. It's already a part of HR-25.
The current Fair Tax legislation in the House has 70 co-sponsors, while a corresponding bill in the Senate has 8, one of whom is 2016 Republican Presidential hopeful and Texas Senator Ted Cruz. Former Arkansas Governor and 2008 Republican Presidential contender Mike Huckabee has also expressed support for the Fair Tax.