What is Americans for fair taxation Afft?
What is Americans for fair taxation Afft?
This is a non-profit organization that advocates replacing the current taxation system in the United States with a Fair Tax Plan. The Fair Tax Plan recommends replacing the income taxation system with a 23% retail sales taxation applied at the point of purchase of goods and services. The only items exempted from the retail sales tax include imports, goods used in production, and second-hand commodities.
Americans for Fair Taxation (AFFT) Details
In 1994, three American entrepreneurs raised $1.5 million in venture capital and hired tax experts and researchers to form AFFT, a research and resource center. The organization's primary goal is to champion changes in the American taxation system for a more neutral taxation system. According to AFFT, the current taxation system favors wealthy people at the expense of the poor.
These amendments include disbanding the Internal Revenue Services (IRS) that oversees the collection of taxes and enforcement of taxation by-laws. Suppose the government heeds the recommendations of the Fair Tax Plan, there would be the formation of a new agency to replace IRS. In addition, AFFT carries out research on taxation, sensitizes taxpayers across the different states, and brings together community forums to discuss the advantages of fairer taxes over flat taxes.
The voluntary organization has over 800,000 members from different careers and businesses. The tax experts in the trust also attend media interviews to discuss the impact of the retail sales tax system on the national economy. AFFT researchers also collaborate with other tax unions and non-profit organizations to update Congress on the Fair Tax Plan effects on National revenue.
Americans for Fair Taxation Impact on Taxation (AFFT) Example
The Fair Tax Plan provides monthly payments from the government to families based on their poverty level. The rebate is 23% of the family's cost of living, as estimated by the U.S. Department of Health and Human Services.
Suppose your poverty level is $30,000 per month. Using the Fair Tax Plan, you would receive a monthly payment of $6,900. Furthermore, the government would apply a 23% retail tax every time you buy goods or pay for a service. For example, if you want to buy gas, that would retail at $1,000 without taxes. You would pay $1,230 for the gas under the Fair Tax plan.
Significance of the American for Fair Taxation (AFFT)
The AFFT is the driver behind the Fair Tax plan seeking neutrality in tax collection and revenue-raising strategies. If assented into a bill, the plan will revolutionize the American taxation system to balance the citizen's income while upholding better federal spending.
The plan will ensure it meets the federal revenue targets while improving citizens' income by scrapping federal income tax, payroll withholding taxes, self-employment taxes, capital gains taxes, corporate taxes, and estate taxes. The success of the AFFT's Fair Plan Tax means:
- Workers will receive all their wages without any tax deductions
- Retirees will receive 100% of their retirement benefits
- Scrapping of all taxes and replacing them with a retail sales tax applied on selected consumption commodities
- Make the taxation system progressive by exempting the poor from the retail sales tax
- There will be no more individual filing of returns
- States will be in charge of the collection of taxes since the new law will abolish IRS
- There will be no tax spending on educational services, thus lowering the cost of studying in the U.S
- Households will receive monthly rebates from the federal governments based on their poverty levels