The Coronavirus &
The Economic Impact
On The U.S.
The Economic Impact
On The U.S.
We hear daily from medical “experts” who disagree on not only the actual threat presented by the coronavirus, but also what steps governments at all levels should take to combat it. Regardless of what government actions are or aren’t taken, the fact remains almost all of the U.S. economy has been negatively affected, with some parts more than others.
Most small businesses and many large businesses don’t have the financial reserves necessary to continue paying their employees and to pay their bills for very long if they have to close. This is due in large measure to the penalties on production and savings built into the income-payroll-tax-system.
Even “essential” businesses who remain open are generally operating with fewer employees, and many have been forced to cut the wages of those employees. Many of these businesses are seeing greatly reduced revenue, and are having difficulty paying their bills.
This is creating a cascading problem for all of us. If a business or individual’s income is cut significantly, then they probably can’t pay their rent or their mortgages. Payments to suppliers and vendors aren’t made. Neither are car payments and credit card payments. And the list goes on…
Many items, like paper goods, have disappeared from store shelves. Most roads are nearly empty because there are few places to go and people have been ordered to stay home. Restaurants, schools, colleges, movie theaters, athletic events and other activities are closed or cancelled.
Many working mothers can’t go to their jobs, even if the job is still there, because their children can’t go to school.
All of these dire circumstances have created a demand for the federal government to step in and “save the people”.
The CARES Act
On 3/27/2020, the “Coronavirus Aid, Relief & Economy Security Act” became law. The following is from a summary prepared by Foley & Lardner LLP, the lobbyist law firm who likely made millions lobbying for their clients:
- Creates a $349 Billion loan program for small businesses, including 501(c)(3) non-profits and medical and dental practices. These loans can be forgiven through a process which incentivizes companies to retain employees
- Allocates $500 Billion for assistance to businesses, states, and municipalities, with no more than $46 billion to support passenger air carriers, air cargo carriers, and businesses important to maintaining national security. The remaining $454 billion may be used to support lending to eligible businesses, states, and municipalities
- Allocates $130 Billion in relief to the medical and hospital industries, including funds for medical supplies and drug and device shortages
- Expands telehealth services in Medicare, including services unrelated to COVID-19 treatments
- Provides payments of up to $1,200 each to Americans making $75,000 or less ($150,000 or less for couples who filed joint returns and $112,500 or less for head of household). Plus, there is an additional payment of $500 for each child. These payments are to be made “as rapidly as possible”
- Expands eligibility for unemployment insurance and provides people with an additional $600 per week on top of the unemployment amount determined by each state
- Expands the “Defense Production Act”, allowing for a period of 2 years when the government may correct any shortfall in resources without regard to the current expenditure limit of $50 million
- Provides the Treasury Secretary with the authority to make loans or loan guarantees to states, municipalities, and eligible businesses and loosens a variety of regulations imposed through “The Dodd-Frank Wall Street Reform & Consumer Protection Act”, “The Economic Stabilization Act of 2008”, and others.
The CARES Act & The FAIRtax
None of the 8 items listed above rely in any way on the present income-payroll-tax-system. Yes, some of the provisions allow businesses to retain the employer share of payroll taxes to help offset the cost of paying employees, but this could be done more easily with a direct grant based on the number of employees.
Normally, the lobbyists and Congress like to bury “special benefits” for their friends deep within the tax-code where they are pretty well hidden from view. Neither the Ruling Class nor anyone in Congress expects the rest of us to challenge the corrupt and incomprehensible income-payroll-tax-system.
However, if we were operating under The FAIRtax, we could all calculate on a napkin the amount it would cost each of us if “The CARES Act” payments were not merely added to the national debt but paid from current revenues. The Ruling Class and Members of Congress know we could never calculate this cost under the corrupt and incomprehensible income-payroll-tax-system.
Who among us really believes the soon to be $25 trillion national debt will not have to be paid? Who among us can calculate how much it will cost each of us to pay off the national debt over 20 years?
With The FAIRtax you can. If you amortized a $25 trillion debt over 20 years at 4%, the annual payment would be $1.818 trillion. Each percentage point of the current 23% FAIRtax rate will bring about $200 billion into the treasury.
This means to make the $1.8 trillion annual payment, The FAIRtax rate would have to increase by 9% to a rate of 32%. Although not exact, if we wanted to keep the essentials excluded from The FAIRtax with the monthly prebate-tax-credit, we would need to add an additional 2%. This 11% would be added to the current 23% making new rate 34%.
Most of us calculate the cost of The FAIRtax by adding it to the cost of new goods and retail services we buy. This means to purchase a dollar item and pay The FAIRtax it would cost $1.30 because $0.30 is 23% of $1.30 (23% is the inclusive rate. For each dollar paid, $0.23 is FAIRtax and $0.77 is for the product. This is the same way income-tax rates are quoted, and we are making a direct comparison to the income-tax. Confusing? Yes, this is what the Ruling Class and Congress want).
Under a new 34% FAIRtax, we would pay approximately $1.50 to purchase a $1.00 item. A fifty percent increase in the price? Horrifying! Yes, it is, but that is the reality of what it would cost us to pay our continuing federal expenses and retire the national debt.
This also explains why Congress and their Ruling Class bosses are so afraid of The FAIRtax. The FAIRtax shows all of us what a terrible job they have done and will continue to do as long as they can hide behind the income-payroll-tax-system.
Conclusion
Benjamin Franklin was one of those essential men without whom there would not have been a successful revolution against Britain or the creation of our Constitution. During the debate on the ratification of the Constitution many opponents were concerned about the power of the Congress and the President, and how they could take away liberty. Franklin said:
"This will be the best security for maintaining our liberties.
A nation of well-informed men and women who have been taught to know and prize the rights which God has given them cannot be enslaved.
It is in the religion of ignorance where tyranny begins".
A nation of well-informed men and women who have been taught to know and prize the rights which God has given them cannot be enslaved.
It is in the religion of ignorance where tyranny begins".
It’s obvious the income-payroll-tax-system keeps us ignorant of what the benefits we are getting actually cost us. Just like we would not tolerate a store hiding their prices from us, we must not tolerate the income-payroll-tax-system hiding the cost of government from us.
Franklin also said,
Democracy is 2 wolves and 1 lamb voting on what to have for lunch.
Liberty is a well-armed lamb contesting the vote.
Liberty is a well-armed lamb contesting the vote.
Franklin wasn’t talking about just being armed with weapons. He was talking about being armed with knowledge. To be “well-armed lambs” we need to understand what our Representatives are spending and how it will affect us.
Do you want to be well-armed?
Do you want the ability to hold your elected Representatives accountable for the good or bad job they are doing?
Do you want to be able to calculate on a napkin what federal spending is costing you?
If so, go to our Homepage by clicking here and sign up to Get-Updates..
Demand Congress to pass The FAIRtax—the only “Fair tax”!
The author George Bernard Shaw said these words in a play he wrote, You see things; and you say “Why?” But I dream things that never were; and I say “Why not?”
Isn’t it time for us to ask, “Why not?”
President Trump, “Embrace the FAIRtax, the only Fair Tax the only fair tax and the only real tax reform! Stand up to the Swamp. They will oppose you anyway because they see you as a threat. What have you got to lose?”
The truth is the truth. Remember, if we don't continue to tell the truth and demand a change, then this quote from George Orwell's 1984 may foretell our children's future:
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
Take Back America Again! Pass The FAIRtax Now!
FAIRtax Online Resources
Americans For Fair Taxation - Home Page
Americans For Fair Taxation - Facebook Page
Americans For Fair Taxation - YouTube Channel (The Chairman's Report is now posted here)
Americans For Fair Taxation - Twitter Page
Americans For Fair Taxation - Chairman's Report Podcast on Spreaker posted Fridays at 6am-ET
Americans For Fair Taxation - Chairman's Report Podcast on Apple
Americans For Fair Taxation - Chairman's Report Podcast on iHeart Radio
Official FAIRtax Logo Store
The FAIRtax Guys - Home Page
The FAIRtax Guys - Facebook Page
The FAIRtax Guys - YouTube Channel
PopVox - The People’s Voice On All Things Legislative
Read Evasion Study Summary
The FAIRtax Guys
Ron Maiellaro & Bob Paxton perform their FAIRtax Power Digital-TV Show & Podcast. When the show streams to Facebook, The FAIRtax Guys plus a few AFFT experts are responding “live” to your comments and questions. A free app is available for iOS and Android.
Digital TV: Tue-8PM-ET Americans For Fair Taxation - Facebook Page
Podcasts: Tue-9PM-ET Posted on Spreaker, Apple Podcasts & iHeart Radio.
Digital TV are available on The FAIRtax Guys
This week's Episode #206 - "COVID-19 vs. The FAIRtax"
Our country’s response to the rapid spread of the Chinese virus has pointed out several weaknesses in our economy as well as our health care system. One weakness is the devastating loss of manufacturing here in the U.S.A. Many U.S. owned plants have been opening in foreign countries instead of here at home. Why?
The answer, very simply, is the burdensome income-tax-system and over regulation which makes it more advantageous for a U.S. company to open a plant in China instead of here in the good ole' U.S.A.
The danger in this situation was demonstrated recently when China threatened to withhold critical equipment and pharmaceuticals no longer produced here. We are now at a distinct disadvantage since we must rely on an unreliable foreign source for these necessary items.
So how do we entice our corporations to return home? More threatening legislation? A campaign of name calling? True-Fundamental-Tax-Reform? Bingo!
Only REAL tax reform can address this issue and The FAIRtax Guys are all over it. Listen, enjoy and please Share this episode of FAIRtax Power Radio.
Join us for another information packed episode of FAIRtax Power Radio and you’ll be on your way to becoming a FAIRtax expert.
As always, the AFFT is looking for Volunteers to help their efforts. Watch or listen to see if there is some small way you can help.
There’s always more in FAIRtax Power Radio such as a reminder of the promotional items available now at Click here to visit our Store and a review of Jim Bennett’s "Grassroots Corner Report".
What Can Each Of Us Do?
Call the local and DC offices of your Representative and 2 Senators. Use the following script:
- I am sure Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws
- After they assure you their boss is not in favor of anyone breaking the law, ask if they are aware of the Cebula study showing $9 trillion of evaded income-payroll taxes over the next 10 years
- Since most will say they don’t believe their boss has seen the study, drop off a copy, email a copy or click Read Evasion Study Summary and copy/paste the link into an email
- Say you are going to call back in a week and ask what the Representative or Senator is going to do to stop this evasion
- In a week, call back and ask specifically what the Representative or Senator is going to do to enforce the law
- They probably will say their boss believes simplifying the income tax will handle the problem
- Explain, when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax. So, it’s unlikely they are going to pay 30-40% when they were paying 0% because they have already decided it’s okay to cheat
- Say, the only way to reduce evasion is to increase by tens or hundreds of thousands the number of comprehensive IRS audits done each year
- Point out Evaders do not self-identify by putting an “E” on their income tax return
- 80% of the people likely to be audited are trying to comply, but they will be forced to endure these IRS audits as well
- Ask if the Member is in favor of this?
- If they say no, then ask again how the Member proposes to stop people breaking the income tax laws
- Then explain the way to handle evasion without unleashing the IRS audits is The FAIRtax
- If you meet with your Representative or attend a town hall and ask these questions, you will be even more effective
American's Big Solution - The FAIRtax Primer America Needs
Hard to believe but there still are people who have not heard of The FAIRtax. For those people, America’s Big Solution provides a starting point in their study of The FAIRtax and is meant for any age.
America’s Big Solution is an introduction to The FAIRtax written by Terry Tibbetts, author of “A Spartan Game: The Life and Loss of Don Holleder”, with help from Ron Maiellaro, President The Florida FAIRtax Educational Association. You can buy an electronic version for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS. You can purchase a print copy at the same Amazon link above for $9.25.
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Thank you for staying FAIRtax strong!
Yours In Liberty! Yours In Freedom!
Steve Hayes
Chairman, Americans For Fair Taxation