NOT A SWAMP CREATURE
Americans For Fair Taxation (“AFFT”) is non-partisan and seeks only to penetrate the Swamp and help the FAIRtax become the law of the land and replace the income/payroll tax system. Congressman DeSantis is a co-sponsor of the FAIRtax. The picture below shows Ron with Steve Hayes and Peggy Green-Ernst.
Congressman DeSantis is not interested in being another servant of the Swamp. He thinks many things need to change in D.C.
- He attacked the income/payroll tax corrupt system by co-sponsoring the FAIRtax.
- He introduced legislation to end the Congressional pensions. He said, “Pensions for members of Congress represent an inappropriate use of taxpayer money, especially when the idea of a pension in the private sector is fast becoming a relic from a bygone era. How can Congress make private-sector employees pony up taxes to fund pensions for members of Congress when few of these taxpayers enjoy such benefits? Congress shouldn't receive taxpayer-funded perks.”
- He introduced legislation that would require Congress and its staffs to be subject to the same healthcare laws mandated for everyone else. He said, “Due to an administrative work-around of dubious legality, Members of Congress receive generous taxpayer subsidies for health insurance obtained in the D.C. small business exchange, which is supposed to be limited to businesses with fewer than 50 employees. This arrangement has shielded members from the burdens of ObamaCare while millions of Americans are struggling to pay their rising insurance premiums. Congress should abide by the laws that they pass and reject special perks not available to their constituents. Members of Congress should not be given special relief from the harmful effects of ObamaCare.”
Congressman Ron DeSantis is running against Florida Agriculture Commissioner Adam Putnam for governor of Florida. His positions have not endeared him to many of his colleagues and members of the Swamp. However, this independence and desire to work for the people has led President Trump to endorse Congressman DeSantis in his race to become the Republican candidate in the Florida governor’s race.
A political action committee supporting Mr. Putnam has run an ad attacking Congressman DeSantis for his support of HR 25, the FAIRtax.
The issue we have is that the ad was 30 seconds of misinformation about the FAIRtax and the only thing that it got right is that it stated the FAIRtax rate was 23%. In summary, the ad said or implied:
- Prices will go up 23%
- Florida tourism will go down
- Florida home sales will cost 23% more
- Jobs will be lost
- Florida will be devastated
Below are the questions and our answers.
Would the prebate be paid to everyone, or just to families below the poverty line?
The prebate is to be paid to every family with valid SSN’s. The elimination of the income/payroll tax system means that the most regressive tax on workers, the Social Security/Medicare tax, is eliminated and lower income families will have more money to spend. The prebate does not have a means-test which means that it is not limited if you make over a certain amount of money.
Would the Fair Tax Act negatively affect tourism to the United States, and particularly to vacation destinations like Florida? Because foreign tourists don't reap the benefits of no income tax, the price jump in sales may be jarring.
With the FAIRtax, foreign tourists will be treated like American tourists to their country, they will pay federal taxes. How it will affect Florida tourism is hard to accurately state. However, competition will reduce the prices of tourist attractions because the owners are able to reduce their costs by the 7.65% FICA tax they no longer pay on their employee wages and because of the savings of other expenses attributable to the eliminated income tax. Will foreign tourists pay more-probably but much less of an increase than the 23% FAIRtax for these reasons.
How would the Fair Tax affect elderly Americans who have already retired? They would also fail to reap the benefits of not paying income tax, yet still face higher sales prices?
First, the prebate will allow the retired person/family to purchase goods up to the poverty level free of any tax. Second, although it will likely vary widely, the prices of goods will be reduced. Third, the FAIRtax bill provides that if there is an increase in consumer prices that the amount of Social Security benefits will increase by that amount. Fourth, retired people who receive income either from their retirement plans or interest on savings and investments will not be taxed. If they continue to work, as is increasingly the case, they will not be paying income/payroll taxes on their earnings.
How was the 23% number decided on?
Based on the federal government consumption numbers, this is the amount needed to replace the income now being collected by the Treasury from the income/payroll taxes. There are numerous studies to which I can refer you validating this.
Do you have any comments on the ad?
First, it ignores the fact that all Florida workers will receive the money previously withheld from their pay and the impact of the prebate. They will then use this money to make purchases. Economically, all taxes are consumption taxes. Any amount taken by taxes simply reduces the amount of allowable consumption. You can either pre-tax consumption like the income/payroll tax or tax at the point of consumption like the FAIRtax. The worker gets the money and then decides the tax to be paid by their consumption. In addition, only new goods and retail services are taxed. The ad ignores the fact that prices will come down some and implies that this would just be a huge new tax added to their existing tax burden. It ignores the fact that the present income/payroll tax makes you earn $1.25 or more, pay the income/payroll taxes, and net $1.00. Very misleading.
Second, there were a little over 6 million homes sold in 2017 in the US. Of those, 5.5 million were used. There would be no FAIRtax on the resale of previously owned homes because it is only levied on new home sales. Unlike today where you have to earn $1.25 or more to net the $1.00 to pay on the home—either new or previously owned.
Third, because there would be no corporate or business tax, companies can invest in making themselves more productive and more prosperous. This will lead to more jobs. In addition, Florida has many exports. Now Florida exporters are punished because when they arrive at the new country, they are subjected to that country’s value added or goods and services tax. When a country wants to export a product to Florida, they refund all of the taxes paid at the border, say an average of 15%, and it then arrives here at 85% of what it would sell for in that country. Under the present income/payroll tax, these products are not taxed. This changes under the FAIRtax, our exports will not include the 10% to 15% to 20% of income/payroll tax costs, and therefore there will be less need for tariffs because our exports will be on the same footing as the imports.
Fourth, it is ironic that Mr. Putnam is attacking a taxation system that is widely credited as being a leading reason for the growth of the Florida economy—no income tax. It is likely that if Mr. Putnam is elected governor, he will boast of the Florida system of taxation, no income tax but a retail sales tax, when promoting companies coming to Florida.
What we are talking about is using the same principle with the entire country. Under the FAIRtax, the US will become the most attractive investment locale in the world and this will lead to more productivity and higher wages. Higher wages will help reduce the 78% of Americans who live paycheck-to-paycheck now. The FAIRtax benefits all of us because, as President Kennedy said, “A rising tide lifts all boats.”
Ron DeSantis has stood up against the Swamp and their minions in Congress. After looking at the facts, Politifact.com has concluded about the Putnam ad, “The statement contains an element of truth but ignores critical facts, leaving voters with the wrong impression. We rate this claim Mostly False.”
Mr. Putnam is apparently running the ad because the polls say that his lead against Congressman DeSantis has vanished. We do know that is it wildly inaccurate. It is for this reason that all FAIRtax supporters are encouraged to go to Congressman DeSantis’ website and let him know that you appreciate his support of the FAIRtax and will educate others that Mr. Putnam’s attack is not only inaccurate but is showing his support of the Swamp. You can also go to Mr. Putnam’s website and express your displeasure with his inaccurate attack on the FAIRtax.
FAIRtax supporters should know that if this type of invalid attack on Congressman DeSantis is allowed to negatively impact his campaign, it will have a chilling effect on other co-sponsors. However, if support of the FAIRtax is shown to be a positive, this will destroy the Swamp lie that support of a system to eliminate the income/payroll tax system is not politically acceptable.
The Merriam Webster dictionary defines a lie as, “to make an untrue statement with intent to deceive.” Mr. Putnam and other politicians who believe it is ok to make “untrue statements” about the positions of their opponents should recall the statement by Fredrich Nietzsche, “I'm not upset that you lied to me, I'm upset that from now on I can't believe you.”
Mr. Putnam, if you are not willing to correct your untrue statements about the FAIRtax, why should anyone believe anything else you say?
It is time to PASS THE FAIRTAX!
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.”
WHAT CAN EACH OF US DO
Call up the local or D.C. offices of your House Member and two Senators and you can use the following script:
- I am sure that Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws.
- After they assure you that 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 ten years.
- Since most will say they don’t believe their boss has seen the study, either drop off a copy or get an email address and send a copy to them for their boss.
- 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 that simplifying the income tax will handle the problem.
- Explain that when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax. So it is unlikely that they are going to pay 30% or 40% when they were paying 0% because they have already decided it is okay to cheat.
- Say that 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 that 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 that the way to handle evasion without unleashing the IRS audits is the FAIRtax.
If you can see your Member or attend a town hall and ask these questions, you can be even more effective.
#119 YES, SENIORS BENEFIT WITH THE FAIRTAX TOO!
But first, a word about a dishonest campaign ad. As you read in Steve Hayes’ Chairman’s Report, the ad run by Florida Grown PC PAC is full of distortions about the effects of the FAIRtax. The FAIRtax Guys discuss how deceptive the ad is and how it could backfire on Putnam campaign. They also remind listeners about the Memorial, passed by the Florida House and Senate in 2014, which makes supporting the FAIRtax the official policy of the Florida legislature. Why would a candidate for Governor oppose legislation which the legislature of that state has gone on record to support? Something is not right here!
The FAIRtax Guys then shift their focus to the question of how the FAIRtax will affect seniors. Addressed in the previous episode, The Guys use a while paper, available on the AFFT website (https://fairtax.org/research-library/demographics) to go into great detail and explain why seniors will benefit from the FAIRtax just like all other American citizens.
In all honesty, there is one group of Americans who will not benefit from the FAIRtax — Congress Critters who have been in office way too long!
Be sure to let everyone you know about the “New and Improved” FAIRtax Power Radio. Watch every Wednesday at 11:30 AM (ET). We are streaming to Facebook LIVE (www.facebook.com/fairtax). If you’re not a fan of Facebook, you can watch FAIRtax Power Radio on xcluded.tv at the same broadcast time - or any time.
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Be a part of this cutting edge news/talk show featuring The FAIRtax Guys. Read further for links to the podcasts.
VOLUNTEER TO HELP THE VOLUNTEERS
It is the American people who will demand REAL tax reform in Congress. Your FAIRtax volunteers are trying their best to inform America about the FAIRtax! Please help us.
Tune into our video broadcast each Wednesday. If you can’t watch live, then listen to the podcast of the show later. You can listen to FTPR on any platform - Mac or PC, iPhone or Android. And it’s 100% free. Listen on Spreaker.com (http://bit.ly/2oesbk7), iTunes (http://apple.co/1Te8VdF) or iHeart Radio (http://bit.ly/2eqEG7y) on your computer or smartphone. The easiest way to listen to FTPR on your smartphone is by downloading the free FTPR app. Just search for “FAIRtax Power Radio” in your app store, download the app and start listening.
A new podcast follows the live show every Wednesday. Please listen and tell everyone you know about the FAIRtax Power Radio. The FAIRtax: Once You Understand It, You’ll Demand It!
THE FAIRTAX BOOK FOR NEWBIES - AMERICA’S BIG SOLUTION
America’s Big Solution is a basic introduction to the FAIRtax and is meant for people of any age. And you can download it to your tablet or smartphone right now. Also available in print form. See below.
Do you know someone who would like an introduction to the FAIRtax and would prefer to read about it rather than search online for Tweets, Posts and Shares? If so, America’s Big Solution is their best choice.
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 of the Florida FAIRtax Educational Association.
You can buy an electronic version of ABS as follows: AMERICA’S BIG SOLUTION is available for only $2.99 for the Amazon Kindle (http://amzn.to/1WIRHry), the Barnes & Noble Nook (http://bit.ly/1XeG8bH) and Apple iOS (http://apple.co/1tnqK0P).
You can purchase a print copy at the same Amazon link above for $9.25. Regardless of whether you choose the electronic format or the print format, you’ll find AMERICA’S BIG SOLUTION will give someone the boost they need to begin their study of the FAIRtax and the suggested resources to learn more. Buy AMERICA’S BIG SOLUTION now!
LINKS TO MORE INFORMATION
These links will help you promote and support the FAIRtax, make yourself familiar with the links below. We always do our best to keep our AFFT community up to date, and you can stay ahead of the curve using these convenient sites.
- The website of Americans for Fair Taxation (www.fairtax.org)
- Read the Summary of the Evasion Study.
- Welcome to the Online FAIRtax Community (member.fairtax.org)
- The website at which you can help make it happen. (www.bigsolution.org)
- The Facebook page for Americans for Fair Taxation
- The Facebook page for The FAIRtax Guys
- The Twitter page for Americans for Fair Taxation
- PopVox - Connecting people and lawmakers for more effective participation and better governing
- YouTube channel for AFFT
- The Official FAIRtax Logo Store (www.fairtaxlogostore.org)
- Xcluded.tv - A new platform for FAIRtax Power Radio Video and other shows.
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