| The FairTax in the News Stop Bribing Companies to Lever Up – The Motley Fool Go ahead and pull out an income statement for your favorite stock. I'll wait. You'll notice that there is a line called "Interest Expense" that comes before the "Tax Expense" line. Now notice the absence of similar lines for "Dividend Expense" and "Share Buyback Expense. No, I'm not trying to bore you with an accounting lecture. I'm trying to point out a travesty of modern finance: the unequal treatment of debt and equity, better known as the tax-deductibility of interest. Thanks to interest deductibility, our tax code unfairly benefits companies that lever themselves to the moon -- e.g., big banks -- while putting those who choose equity financing -- like Apple -- at a comparative disadvantage… I think a more comprehensive solution is in order. And that solution is moving to a consumption-tax-based system like the FairTax. Under the FairTax, the corporate income tax, dividend tax, capital gains tax, payroll taxes, and individual income taxes (including any taxes on interest) would be completely eliminated. Instead, a national sales tax of 23% would be levied on all new goods and services. An "advanced refund" mechanism would also be put in place to ensure that the tax does not hurt those below the poverty line. I'm not the best one to explain the details, so I recommend checking out the FairTax website. If nothing is taxed besides sales, there can be no perverse tax incentives to lever or delever. Debt and equity are truly on an equal footing, as they should be. Letter: Support FairTax - The Topeka Capital-Journal By now we've all heard a presidential's candidate comments around redistribution of the wealth and 47 percent of Americans not paying income taxes. These comments highlight, yet again, that our income tax system is broken and our nation is suffering, most especially young Americans ages 18-29. In fact, 1.7 million of these young people have been jobless for the past year. This is the highest unemployment rate for that age group since World War II. It is a generation in danger of becoming the "lost generation." The FairTax is the solution. The FairTax is a comprehensive plan to replace federal income and payroll taxes with a consumption tax on new goods and services. While permitting no exemptions or exceptions, the FairTax provides a monthly, universal "prebate" or rebate, that ensures each household may consume tax-free up to the poverty level, thereby making the FairTax progressive... - E. M. Mosiman, Topeka The October FairTax Webinar With Special Topic: States with Sales Tax & No Income Tax: How They Compare When: Thursday, September 25, 2012 Time: 8 pm Eastern, 7 pm Central, 6 pm Mountain, 5 pm Pacific Where: At your personal computer, anywhere! Why: To provide an interactive forum for people who cannot get to local meetings to learn about the FairTax and to present special topics that are frequently misunderstood or not generally discussed. Who: Join Marc Manieri, webinar producer and host from Orlando, Florida. In their fourth year, Marc's webinars draw national participation from seasoned FairTax supporters as well as those just getting introduced to the FairTax. Join: To participate, register here and watch for the confirmation email. For more information contact Larry Walters at repeal_16@earthlink.net. | 
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