Some sources of federal revenue remain untapped
In D.C., years ago, budgets and revenue were spoken of in terms of "Hundreds of thousands of dollars."
In the continuing desire of Congress for more federal spending, and thus the need for more taxes, "thousands" soon became "millions," and "billions," and today -- "trillions."
Trillion -- that's the number one, followed by twelve zeros.
There are three sources of federal revenue that are not being tapped, under the present tax code.
1.) Foreign visitors -- From a variety of sources, it is being reported that there are at least twenty million foreign visitors to the USA annually. Since none of them are American citizens, none of them pay an annual income tax. Yet they, at no cost to them, receive the benefits of such public services as police and fire protection, and emergency room care.
2.) Illegal immigrants -- From 12 to 20 million people live in the USA, who are here illegally. Since they are not American citizens, they too pay no federal income tax.
3.) Underground economy -- By some estimates, there are about four billion dollars (that go unnoticed) by such groups and individuals as drug dealers, human traffickers, and employers, that are not reported.
The FAIRTAX proposes a national consumption (sales) tax, paid at the final point of purchase, on all new products and services, for personal use. Used items are not taxed, since it is assumed the tax was paid when the product was first sold, as new. Business-to-business transactions are not taxed, such as when a contractor buys lumber, not for his personal use, but in hopes of selling the house he's building with that lumber.
Hence, foreign visitors, illegal immigrants and the underground, under the The FairTax, will all pay a tax on all new products and services they buy.
In the continuing need for federal revenue, to pay for the federal programs, the Congress of our United States needs to give serious attention to the obvious wisdom of The FairTax.
For more info, contact fairtax.org.
-- Dick Grenell, Ashby