COMMON SENSE AND WASHINGTON, D.C.
When looking at the actions of politicians, Mark Twain said, "I've found that common sense ain't so common."
Only inside the Washington D.C. Beltway will you find supposedly intelligent people that will look you in the eye and tell you that businesses actually pay taxes from some mysterious account that they have. These "brains" point to the billions of dollars that some of these corporations have. However, much of it has been kept outside of the U.S. because of U.S. tax policies and much of it is for re-investment in their business.
The truth, to all of us but D.C. economists, D.C. Elites and other denizens of the Swamp, is that corporations pay corporate taxes from one of three sources. The first is that their employees are going to get lower wages. The second is by increasing the prices of their products. In that way customers pay the increased prices, which in turn generates additional revenues needed, to pay their corporate tax obligations. The third source is by lowering the returns paid to the owners.
A 21% CORPORATE TAX IS BETTER BUT THE 0% CORPORATE RATE IS PRICELESS!
The Organization for Economic Co-operation and Development (OECD) was founded in 1961 and has 35 countries as members but does not include China, India and Brazil. Its goal is to promote communication not only among its members but also with other non-members.
The OECD released a study entitled "Legal tax liability, legal remittance responsibility and tax incidence THREE DIMENSIONS OF BUSINESS TAXATION" by Anna Milanez. The study reviewed many other economic studies to see if there was agreement on who was most impacted by taxes. There were some interesting findings:
- The costs associated with business taxation – whether arising from legal tax liabilities or legal remittance responsibilities – can be passed from capital owners to workers and consumers.
- A minimum of 30 percent, and up to 70 percent, of the economic burden of the corporate income tax is shifted to labor in the form of lower wages.
- A significant amount of the cost of the corporate tax not paid by lower wages is passed on to consumers in higher prices.
Of course, even if these D.C. Elites read the study, they know that "it must be wrong." It doesn't fit their view of the world.
COMMON SENSE
Those of us who work in the real world and are not paid to "think" a certain way know that "free lunches" are not free. Those of us who have run businesses understand that if we make more money we can pay higher wages, be competitive with our prices and still make enough to provide a reasonable standard of living to our families.
Perhaps the real outrage felt by the D.C. Elites is that they, who are not paid to produce real products that help the world but are paid to channel some of our money to their employers, really are upset when they see employers working in the real world making more than minimum wage and some even more than some of the D.C. Elites. The Elites believe that because they are smarter than we are, they should be the only ones who should be making any real money.
We are the ones that have allowed the Swamp to grow and dominate and control the rest of us. No wonder President Trump is such an affront to them. He made his money by actually creating things and employing people. He didn't just shuffle papers and live off the complexities that the Swamp has ensured will require everyone to pay them huge sums of money to navigate through the morass of laws and regulations.
President Trump sees the members of Swamp and the D.C. Elites for what they are: parasitic creatures feeding off of the rest of us.
CONCLUSION
The twisted logic that allows the D.C. Elites and other members of the Swamp to ignore the impact of business taxes on the employees, the owners and consumers, also permeates all of their other endeavors.
Although not as much a parasitic plant but an invasive plant, in the south we had kudzu. Kudzu is a plant imported from Asia in the late 19th century to be used in gardens. However, like Audrey, the plant in the Little Shop of Horrors that just kept growing, it soon began to take over and destroy once beautiful gardens. Kudzu is a woody vine that can grow at a rate of one foot per day and reach lengths of 100 feet. It takes over trees, other vegetation, telephone poles, signs--anything in its way.
We in the U.S. have allowed the denizens of the Swamp to become like the Kudzu plant. They take over everything in their path and they, like Kudzu, are difficult to stop. Their continued growth is encouraged by many Members of Congress who see nothing wrong with the corrupt system.
How do we stop the Kudzu-like growth of the Swamp and actually drain it? President Trump has found that the Swamp is supported by the leaders of both parties. We have to help our President and the Members of Congress who recognize the Swamp is out of control. When the Swamp representatives make one of their silly statements like taxing corporations and businesses doesn't hurt workers' wages or raise consumer prices, then we must laugh at their stupidity.
H.L. Mencken, who many remember as the reporter at the Scopes "Monkey" trial in 1925, reported on the Swamp (yes there was a Swamp in the first half of the century) and he said something that made sense then and makes sense now:
" It is inaccurate to say that I hate everything. I am strongly in favor of common sense, common honesty, and common decency. This makes me forever ineligible for public office."
To be fair, there are some very good people serving in Congress who are continually pushed to go along with the Swamp and who want to do what is right for us. It is time for these "good" Members to stand up to the Swamp. The easiest way this can be done is to take control of the way we fund our government out of the hands of the Swamp and 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.
HELP CONGRESS BREAK THEIR ADDICTION
FAIRTAX POWER RADIO EPISODE #92
Congress is addicted. They are hooked on the income tax and the power they wield in thrusting this byzantine system upon the citizens of our country. They are hooked on using the tax code to conduct class warfare. They are hooked on using the IRS as a weapon against their political opponents. They are hooked on taxing our hard work and productivity. They are hooked on the constant tinkering of the tax code with their daily proposals to amend it. Such is their addiction that they completely ignore the huge problem of evasion that costs every household over $5000. Very simply, they are addicted to the income tax. We must use the FAIRtax to launch an intervention and break their addiction. Only the FAIRtax is strong enough to bring them back to reality.
In last week’s episode, The FAIRtax Guys addressed the subject of tax fraud. They discussed how some ignore the huge evasion problem with the current income tax, but warn about fraud with a consumption tax. The FAIRtax Guys discussed in detail why a consumption tax is much less vulnerable to fraud than today's income tax. With facts and figures, they explained how difficult it is to defraud a sales tax and the provisions in the FAIRtax bill to deal with those that might try. They also reminded us of the astronomical fraud figures of the current income tax and how much it is costing each of us. When it comes to fraud, the income tax is the clear winner.
HELP THE FAIRTAX GUYS EDUCATE OTHERS ABOUT REAL TAX REFORM. Telling your friends and relatives about our free weekly podcasts is a great way to help us garner more support. It is the American people who must demand REAL tax reform in Congress. We must inform America about the FAIRtax! Please help us.
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We post a new episode every Friday morning. Please listen and tell everyone you know about the FAIRtax Power Radio.
The FAIRtax: Once You Understand It, You’ll Demand It!
AMERICA’S BIG SOLUTION - AN INTRODUCTION TO THE FAIRTAX
America’s Big Solution is a basic introduction to the FAIRtax and is meant for people of any age. 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 your 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)
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