LIMA — Steve Curtis, the Ohio Director for the Ohio Fair Tax movement, encouraged members of the Allen County Patriots to support the movement to help turn around the nation’s economy.
Curtis discussed several details of the proposed plan for about two hours st the meeting Thursday, which was held in the conference room at the City of Lima Sanitary Engineer’s office. Curtis said the plan would stimulate the U.S. economy.
“It would prevent businesses from being penalized for being successful,” Curtis said. “In my opinion, it would also break the poverty cycle.”
Curtis said the system would be much more efficient than the current federal income tax system which is used to collect taxes. He said it would also reverse power from the federal government back to the states, which was what the forefathers intended.
“Just recently in Arizona the federal government threatened with money if the state didn’t do what they wanted,” Curtis said. “This way, the states would be able to tell the federal government that they weren’t sending their money in if they weren’t doing what they were supposed to.”
Curtis explained that the fair tax would eliminate the Internal Revenue Service and institute a simple, retail sales tax that would apply to all new goods and services. The fair tax would also repeal the 16th Amendment, which allows the Congress to levy an income tax without apportioning it among the states or basing it on the U.S. Census.
“The tax would be based on consumption and not on success,” Curtis said. “It collects the same amount as what is currently collected and is more efficient.”
Curtis explained that while the current federal income tax system collects about $2.5 trillion, nearly one half of that is wasted in money that is not collected, compliance enforced by the IRS, and costs to American businesses.
“It would be equal to a $1.2 trillion stimulus,” Curtis said.
He said while many politicians have campaigned that the current tax system needs fixed because it isn’t working, he said it was not a solution.
“There have been thousands of changes,” Curtis said. “We don’t need to fix it. We need to get rid of it.”
He said the move would be more efficient in eliminating the need to file taxes annually. He said all taxes would be paid at time of services. State government and retailers would receive .25 percent of the amount collected for government expenditures. He said it would also eliminate the need for the federal government to track information such as personal income.
“This was the way our forefathers intended for it to be,” Curtis said. “Right now, the federal government collects the money and they dribble it out to everyone who does what they say.”
Curtis added that the fair tax would get rid of 75,000 pages of regulations, reduce Congressional corruption, create millions of jobs, and expand the economy at the rate of five percent annually for a decade.
Curtis said the key to getting the fair tax implemented was getting 218 votes from Congress, 60 from the Senate, and support from the president. He said they currently had 80 congressman in place who would co-sponsor the bill.