Just as taxes were at the heart of the first American Revolution, they are a major part of the second one. Our tax system is wasting trillions, catering to special interests, and stifling economic development. It is our belief that the Missouri Income Tax Reform Bill will attract business to Missouri, create jobs, and lay the foundation for a national FairTax bill which could truly reestablish individual financial freedom and revive our national economy.
Your interest and participation in the passing of a Missouri Income Tax Reform Bill could not come at a better time! A business friendly tax system should be simple to understand and execute, transparent with no hidden agendas so people can know how much government is costing, and fairly applied to all citizens without increasing the cost of basic necessities. Our third President, Thomas Jefferson said,
“I think it an object of great importance…to simplify our system of finance… We might hope to see the finances of the Union as clear and intelligible as a merchant’s books, so that every member of Congress, and every man of any mind in the Union, should be able to comprehend them, to investigate them, and consequently to control them.”
The federal FairTax (HR-25) and the MO reform plan (HJR-56/SJR-29) does all of these things. Your help educating the public and our elected officials about the true provisions of these reform bills would be most appreciated.
With every best wish for victory,
Bill Phelps (MO Lt. Gov. 1973 - 1981)
State Director: MOFairTax, Inc.
How to pass income tax reform in MO and nationally:
To successfully move our income tax reforms through the legislature(s) will require personal responsibility and active citizenship on everyone’s part. Please use the following outline to help accurately explain the two proposals and explode the common misconceptions that our opponents seek to exploit. Here’s what you need to know:
Our federal income-tax system is wasting Trillions:
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It is costly to calculate and comply with at over $350+ billion/yr.
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It is confusing with 67,000+ pages of code.
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It is time-consuming, requiring 6.6 billion man-hours of unnecessary time spent each year.
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It punishes hard work, achievement, and savings.
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It is a drag on our economy by raising the cost of products 15 to 25%. These are hidden costs embedded in our products and services.
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It allows many who do not report their income to avoid paying their fair share. (Estimated at $1 Trillion)
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It violates the 4th Amendment that is supposed to protect the security of our “houses, papers, and effects.”
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It drives businesses to other countries. ($10 to $12 trillion of capital investment is currently offshore)
How we would benefit from the FairTax Plan
- It taxes everyone fairly and simply.
- It eliminates:
- ALL FEDERAL INCOME TAXES!
- ALL PAYROLL TAXES!
- ALL DEATH AND GIFT TAXES!
- THE IRS!
- It eliminates all federal payroll deductions.
- It completely un-taxes basic necessities helping low-income people the most.
- It un-taxes saving and investment income encouraging capital investment.
- It treats tuition as a nontaxable investment in human capital.
- It gives retirees and persons on fixed-incomes more disposable income.
- It raises the same amount of revenue as the current system (including Social Security and Medicare) at much lower marginal rates.
- It reduces the exportation of American jobs to other countries.
- It entices offshore companies to bring their businesses home to America.
- It eliminates all individual reporting forms and fees needed to prepare them.
- It STOPS billions of dollars from being spent by special interests who lobby for preferential tax treatment in return for campaign contributions. (Estimated at $1 Trillion.)
- It is estimated to boost GDP 10.5% the first year according to Harvard economist, Dale Jorgenson.
- It makes our tax system truly voluntary by allowing people to control the timing and the amount of taxes they pay.
- It makes the true cost of government transparent with every sales transaction.
- It eliminates the tax and compliance costs that are hidden in the production and delivery processes thereby allowing retail prices to fall.
- It taxes the cash economy including tourists, illegal aliens, and drug dealers who do not currently pay income tax.
- It broadens the tax base so EVERY honest American pays less total tax.
- It provides a prepaid, monthly rebate for every legal resident with a Social Security card to reimburse the the taxes paid on basic necessities up to the federal poverty level (currently $29,140 for a family of 4). This completely untaxes the poor and makes the overall rate progressive. Learn more at:
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The prebate allows the plan to eliminate all exemptions and thereby prevents a new wave of corporate lobbyists from corrupting the plan.
What the Missouri Income Tax Reform Bills (HJR-56 & SJR-29) will Do
Under the MO reform bill (The Missouri Jobs & Prosperity Act), the current MO sales tax of 4.225% is replaced by a gradually higher sales tax phased in over 5 years on new goods and services with no tax on used goods. The plan assures the changes will be revenue neutral for the state and local communities in each year of transition and allows revenue to grow as the state and local economies grow.. Additionally:
- It eliminates the state’s 6% tax on personal income including capital gains income.
- It eliminates the state’s 6.25% tax on corporate income.
- It jump-starts Missouri’s job-creation engine.
- It lowers the economic hurdles for starting a new business in Missouri.
- It makes Missouri a more attractive business location than competing states.
- It encourages other states to reform their tax codes and provides an economic model to demonstrate that the national FairTax Bill will work in reality.
Listen to Arthur Laffer endorse the Missouri Plan, here:
What can you do to help?
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Simplicity,
Transparency,
&
Fairness
Join our national campaign and learn more at…
www.FairTax.org
