Thread: FairTax and Trade

The FairTax doesn't do away with tariffs. It does away with income-based taxes, specifically, payroll taxes for SS and Medicare, corporate income tax, personal income tax, capital gains tax, interest tax, dividend tax, gift and estate tax.

John is wrong, the FairTax eliminates the huge IRS and creates a small bureau within the Treasury Department that collects 50 state FairTax reports per month from the 50 states.

Only retail businesses are involved with the FairTax as collectors and are paid a fee for this service. They report and transmit the FairTax, less their fee, to the states. The states report and transmit the FairTax for their state, less their fee for their service in collecting the FairTax, to the federal government. The federal government collects 50 reports and transmissions per month.

There will be 253 million very complex income tax returns processed by the IRS this year under the existing income tax system.

https://www.irs.gov/pub/irs-soi/12rs...urnfilings.pdf

Under the FairTax system there will be 600 (50 states x 12 months) FairTax collection reports filed with the federal government each year so it's a much better system for the people, no returns, no mandates, much easier system for businesses, who are all exempt, and only retailers who sell to the public have to do anything and they are paid well for their service of collecting the FairTax that is paid by consumers, and good for states with state sales taxes, 45 states have existing state sales taxes, because they're now paid a fee to collect the FairTax on their existing state sales tax reports, adds 2 lines to their forms.

But this thread is about the FairTax and Trade. No, I do not claim the FairTax does away with tariffs. Tariff laws are not changed by the FairTax. The FairTax will balance trade deficits without having to use tariffs, but the government can still use tariffs, existing ones or new ones or different ones, any time it wants to achieve whatever its goals are at the time, because the FairTax legislation doesn't do anything to tariff laws except make them unnecessary to balance our trade deficits.

The purpose of this thread is to encourage Congress and the President to focus on the tremendous advantage the FairTax has with respect to solving trade deficits without all these confrontations and complex agreements over tariffs. We would still need trade agreements for national security, intellectual property theft, currency manipulation and dumping, but you wouldn't need them to balance our trade deficits, that will happen in due course and very quickly with the FairTax.