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Running Head: Fair Tax Act of 2007

Fair Tax Act of 2007:
Saving Money and Saving America
Thomas Evans
Axia College of University of Phoenix

Abstract
The Fair Tax Act of 2007 as proposed to Congress in bills HR-25 and S-1025 has the potential to alleviate financial burdens for American Taxpayers while lowering the deficit and stabilizing the economy. If the bill should be passed into law it would call for the abolition of the 16th Amendment ending the taxation of income and dismantling the Internal Revenue Service. Included in the act is a proposal to institute a national sales tax to recoup the loss of revenue for the government when they no longer collect income taxes. The passage of this law will be a benefit for American workers and their personal budgets.

Laurence J. Peter once wrote that “America is a land of taxation that was founded to avoid taxation. ” Holding that quote in mind, on January 4, 2007, Representative John Linder [R-GA] along with 72 of his peers introduced into the House of Representatives a bill entitled HR-25: The Fair Tax Act of 2007 , authored by Representative Linder. This bill was discussed and sent to the House Committee on Ways and Means. Nearly three months later, on March 29, 2007, Senator Saxby Chambliss [R-GA] and 4 of his peers introduced bill S-1025 , the same text as HR-25. This bill was read twice and referred to the Senate Committee on Finance.

References:
Internal Revenue Service, 2008, Publication 15, Circular E: Employers Tax Guide, Retrieved June 10, 2008 from http://www.irs.gov/pub/irs-pdf/p15.pdf
CATO Congressional Testimony, June 8, 1995, Testimony of Stephen Moore before the House Ways and Means Committee on Replacing the Federal Income Tax, Retrieved from June 10, 2008 from http://www.cato.org/testimony/ct-it68.html

Tables:
Table 1-A: Basic necessities for the average single person paying income taxes.
Weekly Average Monthly Average Annual Average
Rent or Mortgage $75 $324.75 $3,899.10
Electricity $35 $151.55 $1,820.60
Sanitation (including water Supply, sewage and waste management) $7.50 $32.48 $390.76
Transportation (Most cost efficient mode of travel is mass transit at an average of $50 for a monthly bus pass) $12.50 $54.12 $650.44
Groceries (Including food, clothing, toiletries, etc.) $75 $324.75 $3,899.10
Total Costs $205 $887.65 $10,660
Pay rate needed $7.88 per hr. $7.89 per hr. $7.89 per hr.
Gross Pay (40 hr work week) $315.60 $1,366.55 $16,411.20
Net Pay (40 hr work week minus 35% taxes) $205.14 $888.26 $10,667.28

Table 1-B: Basic necessities for the average single person paying income taxes.
Weekly Average Monthly Average Annual Average
Rent or Mortgage $75 $324.75 $3,899.10
Electricity $35 $151.55 $1,820.60
Sanitation (including water Supply, sewage and waste management) $7.50 $32.48 $390.76
Transportation (Most cost efficient mode of travel is mass transit at an average of $50 for a monthly bus pass) $12.50 $54.12 $650.44
Groceries (Including food, clothing, toiletries, etc.) $75 $324.75 $3,899.10
Total Costs $205 $887.65 $10,660
Pay rate needed $5.85 per hr. $5.85 per hr. $5.85 per hr.
Gross Pay (40 hr work week) $234 $1,013.22 $12,160
Net Pay (40 hr work week minus 35% taxes) $234 $1,013.22 $12,160

Tags: 2007, Act, AMERICA, and, Fair, Free For Essays, money, of, SAVING, Tax

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