(4/15/2004) Wohlgemuth says make April 15th Just Another Day
For Immediate Release
For Information Contact:
Todd M. Smith (512) 658-9699
Gina Hollenbeck (979) 224-2951
Burleson, TX— State Representative and the Republican Nominee in the race for Congress in the newly drawn 17th District, Arlene Wohlgemuth, said that she wanted to make April 15th just another day for Americans, by making the Federal Income Tax a thing of the past.
Wohlgemuth today announced her support for the Fair Tax Act (HR 25/S 1493) which will replace the Federal Income Tax with a consumption tax instead. According to Wohlgemuth, the Fair Tax Act, if passed by Congress and signed into law by the President, will replace the entire federal income tax system, including personal, payroll, corporate, self-employment, capital gains, gift, and inheritance taxes. She said the Fair Tax will allow Americans to keep 100% of their paychecks and will dramatically reduce pre-tax prices, fully funding the Federal government, including Social Security and Medicare. Wohlgemuth said that passing the Fair tax Act will be one of her top priorities when she is elected to Congress.
“Today (April 15th), millions of Americans are disrupting their day by having to complete and mail their Federal Income Tax returns,” Wohlgemuth said. “I want April 15th to be a day just like any other and with passage of the Fair tax plan it can be,” she added.
Wohlgemuth said that as she has campaigned across the 17th Congressional District she has heard from hundreds of people who believe that the Federal Income Tax system is broken. “Patching up the existing tax code is pointless,” Wohlgemuth said. “The taxpayers of the 17th district are looking for a fresh and fair approach. The Fair Tax is that new approach,” Wohlgemuth added.
Wohlgemuth said the Fair Tax replaces the way Americans are taxed—based on annual income—with a tax on goods and services. She said the Fair tax is a voluntary consumption tax: the more you buy, the more you pay in taxes, the less you buy, the less you pay in taxes. She said under the new system, everyone would pay their fair share of taxes and that you would not need an expert to help you figure out how much you owe.
“With the Fair Tax, you will get to take home 100% of your paycheck,” Representative Wohlgemuth said. “No income taxes or payroll taxes will be withheld from your paycheck or social security check,” she added.
Wohlgemuth said that is estimated when the Fair Tax Act is passed and abolishes the federal income tax system, prices will drop 20% to 30%. The proposed Fair Tax rate is 23%. So, instead of paying 15.3% of your paycheck in payroll taxes, plus an average of 28% of your paycheck in federal income tax, for a total of about 43% of your paycheck going to the federal government in Washington, you pay only a 23% consumption tax each time you purchase a new good or service for your own personal consumption above the federal poverty level. At this 23% rate, the Fair Tax will pay for all current government operations, including Social Security and Medicare. With a consumption tax like the Fair Tax, government revenues will be even more stable than they are now because consumption tends to be more constant than income.
Wohlgemuth said that with the Fair Tax, if you choose to buy any new good or service for yourself, a consumption tax of 23%, will be added into the price. If you choose to buy used goods — used car, used home, used clothing — you do not pay the Fair Tax. If, as a business owner, you buy something for strictly business purposes (not for personal consumption), you pay no consumption tax. So, in deciding what to buy, you get to choose whether or not you will pay the federal consumption tax.
Wohlgemuth said that perhaps most importantly, to ensure that no American will pay tax on necessities, the Fair Tax plan provides a prepaid, monthly rebate for every registered household to cover the 23% consumption tax spent on necessities up to the federal poverty level. This is how the Fair Tax completely untaxes the poor, and lowers the tax burden on everyone else.
On the web: http://www.arleneforcongress.com