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Publisher:  Bruce Douglas;  Editor, Policy Specialist, Writer:  Fred Holden.

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SuperCitizen.com
EduPage
May  1999

SUMMARY OF  HR1467, NRST LEGISLATION OVERVIEW TO READ & SHARE

The National Retail Sales Tax was reenacted into legislation by Reps Billy Tauzin (R-LA) and James Traficant (D-OH) initially as HR1467 on Income Tax Day, April 15, 1999. As was last year it will soon be HR2001, the year it sunsets the IRS. You can get the complete bill (last year's was 83 pages) or perhaps an information packet from them. For now here are some key points of the legislation:

SUMMARY OF THE NATIONAL RETAIL SALES TAX ACT OF 1999

INCOME TAX REPEALED: The personal and corporate income tax -- including income taxes on capital gains and savings -- estate and gift tax, and all non-trust fund dedicated excise taxes are repealed.

IRS ABOLISHED: The Internal Revenue Service is de-authorized, as of fiscal year 2001, allowing time to close out previous tax years. No successor agency is established. The Secretary of the Treasury will administer the new tax system.

SALES TAX IMPOSED: A tax of 15 percent is imposed on the gross receipts from the sale of any taxable good (foreign and domestic) or service in the United States. The amount of tax paid on every transaction must be fully disclosed to the consumer.

NO REGRESSIVITY: To ensure that the basic necessities of life remain tax free, every wage earner receives a refund equal to the sales tax rate times the poverty level (adjusted for the number of dependents claimed) in every paycheck. As a result, every wage earner can consume up to the poverty level free of any federal taxes.

EXEMPTIONS: No tax will be imposed for any good or service which is purchased for resale; purchased to produce a good or service for retail; exported from the United States; or for the purchase of education and training.

SOCIAL SECURITY: Social Security benefits increase to reflect the sales tax by directing the Social Security Administration to adjust the Consumer Price Index to include the sales tax in their benefit formula if the Labor Department does not include the sales tax in the CPI.

SAVINGS AND INVESTMENTS: Income going to savings and investments is not taxable until consumed. Investment income is not taxable until consumed.

SUPERMAJORITY REQUIRED: A 2/3rds vote of both Houses of Congress is necessary to raise the sales tax rate or create any exemptions to the sales tax.

THE FAMILY HOME: Home mortgage interest is not "consumption" and therefore is not taxable. Sales tax on mortgage principal is payable in equal installments over the life of a 30-year mortgage. Persons who are homeowners on the date of enactment will be deemed to have paid the sales tax on their home.

TAXPAYERS PROTECTED: The burden of proof lies with the government in any dispute with a taxpayer.


See "Triple-2 ToDo" in banner above, "two hours, two days , two more." Invite your key contacts to visit SuperCitizen.com and get this information. Also invite in any way you can, including a letter to the editor of your local newspaper, people to visit this website. Supercitizen.com needs some 10 million people within 30 months to be rid of the federal income tax and IRS. It can happen, especially if you help make it happen. Believe it.