A ‘Goals-Based’ analysis of tax reform proposals
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Goal: Unintrusive

Goal: Unintrusive

Most Americans would not argue that the IRS is the most intrusive government agency in the world.

So consider that any tax on income, be it flat or progressive, will still requires that the IRS remain intact, to insure compliance. Think about it. Without an IRS, how would the government know that every taxpayer was reporting his earnings correctly? Without any fear of an agency policing income tax reporting, tax evasion schemes would become rampant, from the very rich to the minimum wage worker. Therefore, it is a truism that as long as there is an income tax, there will be an IRS or an agency of the same purpose, by a different name.

Even 9-9-9 includes income tax components, so it too, requires that the IRS remain intact.

The only tax reform proposal that gets the IRS completely out of the lives of every taxpayer is the FairTax. In fact, the FairTax abolishes the IRS and requires the destruction of all personally identifiable data held by the IRS, with only two exceptions. Data required to continue prosecution of ongoing tax evasion cases will be kept until such time as those cases are settled and just that limited data required to calculate social security will be forwarded to the Social Security Administration.

Under the FairTax, individuals are not subject to audit unless they are selling new retail goods. Only retail businesses may face an audit under the FairTax and then only by state auditors; not the IRS. That’s because, under the FairTax, the states collect the sales tax (as they already do in 45 states), take out their portion, which reimburses them their costs for providing that service and then forward the rest to the federal government. Therefore, the federal government will audit only the states tax collection agencies, to insure that they are remitting the correct amount to the federal government. Under the FairTax, individuals who don’t sell new retail products will never again face an IRS audit. Furthermore, the FairTax is the only tax reform package that will completely eliminate the IRS.

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