King op-ed: Abolish the IRS, Enact the FairTax
In recent years, Americans have watched as banks collapsed, small businesses failed, homes were foreclosed upon, and friends and family lost their jobs. As we continue to move toward recovery, we must ensure that we take to heart an important lesson from this crisis: big government is not the answer.
Each year, American taxpayers spend 6.1 billion hours and $163 billion preparing their taxes. Small businesses spend 1.9 billion hours and $19 billion complying with our income tax code every year. The IRS itself costs nearly $12 billion dollars to operate for a single year. Our corporate taxes are the highest in the industrialized world. Our tax rates and system hobbles American business and diminishes our competitive edge. What's worse, our current tax system perversely taxes(read that punishes) all productivity; all earnings, savings and investment of Americans. We have a tax code that is counterproductive, complex and chaotic and the U.S. taxpayers are paying the price. There is a far better solution.
The solution is H.R. 25, the FairTax, a national consumption tax placed on all new goods and services sold for personal use. The Fair Tax would completely replace the current patchwork of federal income, excise, and payroll taxes currently used to collect revenue for the federal treasury. The FairTax would drive economic growth, quash tax-evasion, empower taxpayers to determine how much they will pay in taxes each year, foster saving and investment, and enable American companies to compete fiercely in the global marketplace.
Our federal tax system is morphed beyond recognition or repair. Productive Americans are hit too hard by taxes. The current economic malaise cannot and will not be solved with tax increases and more government spending.
Years ago, I founded King Construction and spent 28 years operating my business. My experience with the IRS helped bring me to a conclusion to work to abolish them. Other than the Fair Tax, there is no tax plan that completely eliminates the IRS. What's more important, much more important, is that the Fair Tax does everything good that any tax policy does that is good. It does them all, and it does them all better.
The FairTax eliminates the IRS - and every other current form of taxation as well. It replaces the entire revenue stream with a consumption tax, which would lift the burden of taxation off American productivity and place the power to control how much Americans are taxed in our own hands. Because it empowers citizens instead of government, it is the most effective way to encourage positive, long-term economic performance which will create millions of jobs across the country.
Replacing the current income tax with a consumption tax, the Fairtax, will ensure that productivity is not punished in our country, but rewarded.
The FairTax will free the economy from the self-imposed chains of the current tax code and unleash growth. It is the way to help unemployed Americans find new jobs and families pay their bills. Now is the time to position the FairTax in the center of the ongoing economic debate in Congress, the presidential races and throughout America as the most effective way to empower the Americans and foster the robust economy we need to remain the shining city on a hill.