Lake Arrowhead, CA (PRWEB) March 23, 2007
Freshman high school student Sierra Jones, while having a family discussion at the dinner table outlined a brilliant strategy to solve the nation's unbalanced income tax collection process. The proposal would virtually eliminate the traditional tax forms that millions of American families have to address every year.
The plan is ingenious by its simplicity and potential ease of implementation. It would allow every American that wanted to stick to the "old system" that option. But those who long for a flat tax could easily sign up for the alternative method of paying income taxes.
The Flat Tax plan as outlined by Sierra is as follows: Anyone making a purchase would present a card that immediately identifies them as a Flat Tax participant. If a purchase of $20 is being transacted and the state tax is calculated, the card would allow the merchant to add an additional 10% to the purchase which would then be sent to the federal government much the same way a debit card works.
Every consumer that would rather pay 10% on every purchase to the federal government rather than go through the yearly tax prep angst would gladly present the card identifying them as a "Flat Tax" participant. The card would be similar to a credit card with magnetic strip; the government would know instantly how much tax money was collected on any given day. Individuals whose yearly income is below the taxable level would simply file their tax form as usual.
Sierra stated, "This program called Fair Income Tax or FIT card for short could be implemented in a small community to determine if it's practical and if consumers will adopt the FIT card."
For years consumer advocacy groups and individuals have lobbied congress to revamp the tax collection process to make it more equitable for all Americans. Sierra is hopeful that implementation of the FIT card will make it easier for tax collection and taxpayers.