THE FAIRTAX, THE CURRENT INCOME/PAYROLL
TAX SYSTEM AND THE GOVERNMENT SHUTDOWN
It has long been the case that a large number of employees use income tax withholding as a method of forced saving. These employees allow more than the required amount to be withheld from their paychecks in order to get a “refund” when they file their tax returns in January of the following year. Of course, most people forget that this is not a gift from the government but simply the government repaying an interest-free loan to the taxpayer of his/her own money.
Because, until recently, almost all bank interest rates were under 1% and this meant that the money could not be spent but “saved”, it made some sense. Now many people are concerned when they will get their “refund.” Since a great many of our fellow citizens live “paycheck to paycheck”, many have things for which they plan to use the refund. Some will use it for health/dental issues or for a purchase or simply to pay down debt they had to incur. How will the government shutdown affect them?
This was announced by the IRS on January 4, 2019:
The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February.
The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.
Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns Jan. 29, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds.
The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns.
The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return.
While not accepting individual income tax returns until January 29th is only a week later than for 2017 returns when there was no government shutdown, unmentioned is how long it will take to process a refund of the EITC and/or ACTC.
This article in the Washington Post points out how the shutdown is affecting the IRS and you. The article pointed out:
- Training for IRS employees on the new law have been postponed.
- Hundreds of centers that help taxpayers navigate the tax code will be closed for the duration of the shutdown.
- New regulations clarifying the more complex parts of the law are coming out at a significantly slower pace, and tax attorneys and accountants report struggling to get IRS officials on the phone for help.
- Some accountants and tax lawyers also report not being able to get answers to the questions they have, particularly regarding the new pass-through deduction, as their clients press for answers on how to structure their business operations.
- Morale among IRS employees is low and will continue to suffer as the shutdown goes on. Unpaid IRS employees have reported struggling to pay for gas to get to work and for food for themselves and their families, while also having to pay parking fees at work despite lacking income.
THE CONTRAST WITH THE FAIRTAX
Under the FAIRtax, the following is true:
- There would be no withholding for income tax or Social Security/Medicare taxes so people would have all of their paycheck not reduced by these federal taxes.
- Instead of Congress and the Swamp telling us how much of our money we can keep, it is determined solely by what we spend.
- There would be no income tax returns filed with the IRS.
- There would be no need to have complicated IRS regulations written or explained.
- There would be no IRS audits.
- The FAIRtax would be collected and paid only by businesses and people providing retail services and new goods.
- The FAIRtax would be administered by state sales tax groups and any audits would be performed by them.
Again, a glaring omission from the IRS statement is the answer to the question, “How long will it be after I file when refunds and credits are going to take to be paid?” They don’t say that even if you file electronically that you will be paid in a certain amount of time. They just say filing electronically will speed things along. Does that mean instead of taking 10 weeks to get a refund it will only take 8 weeks?
It is interesting but in a very cynical way that many in Congress and the Swamp probably like the idea that the shutdown focuses attention on how much we depend on them in our lives. They like the idea that millions of families will now more fully understand that it is up to Congress and the Swamp to determine when they get their tax credits or refunds. This serves to let all of us know that if our betters in Congress and the Swamp don’t like how low we bow to them, they can punish us in our pocket books.
This is another reason the Swamp and many Members of Congress oppose the FAIRtax. Not only is the present income/payroll tax system the source of much wealth to them and their friends, but it is a significant tool to keep the uninformed rest of us in check.
Isn’t it time to take back control from D.C.?
President Trump, “Embrace the FAIRtax and real tax reform! What have you got to lose?”
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.”
Call up the local or D.C. offices of your House Member and two Senators and you can use the following script:
WHAT CAN EACH OF US DO
- 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.
FAIRTAX POWER RADIO
#144 So The New Guy Says “Nah, It’ll Never Work”
Have you ever run into someone who, after a brief description of the FAIRtax, becomes an instant tax expert and says “Nah, it’ll never work!” Frustrating, isn’t it.
Using the comments from listeners and old school chums, The FAIRtax Guys begin a comparison of the current income tax system with the FAIRtax.
Which system eliminates record keeping and reporting for individuals? Which one eliminates the IRS? Which system violates the Bill of Rights? Which system protects the working poor?
This is Part 1 of 2 of a point by point comparison of the two systems. Guess which system is best for all Americans?
If you believe the FAIRtax is good for America, let others know by turning them onto FAIRtax Power Radio - the ONLY weekly FAIRtax digital TV show in the country! 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 the show on www.xcluded.tv at the same broadcast time - or any time.
FTPR podcasts for each show are posted on Spreaker (http://bit.ly/2oesbk7), iTunes & iHeart Radio every Friday morning. A free FAIRtax Power Radio app is available for iOS and Android. Since it’s a podcast, you can download it and play it whenever it’s convenient for you.
The FTPR weekly episodes are shared to a number of Facebook pages:
- FAIRtax Official (https://www.facebook.com/FairTax/)
- The FAIRtax Guys (https://www.facebook.com/thefairtaxguys/)
- Democrats for FAIRtax (https://www.facebook.com/DemocratsForFairTax/)
- and many others
www.xcluded.tv is a subscription based site which costs $30 per year and features a number of other shows along with FTPR with no commercial interruption.
Please help us educate as many Americans about the FAIRtax as possible. Be sure to tell everyone you know about this great new format for FAIRtax Power Radio. Whether you watch the weekly video or listen to the weekly podcast, this is a great way for more Americans to learn about the best tax reform plan in Congress at this time.
Tune into our video broadcast each Wednesday. Or, if you prefer, you can 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.
Remember, FTPR digital TV every Wednesday at 11:30 AM (ET) followed by the podcast on Friday morning. Please listen and tell everyone you know about the FAIRtax Power Radio. The FAIRtax: Once You Understand It, You’ll Demand It!
DOES SOMEONE NEED A SIMPLE INTRO TO THE FAIRTAX?
HERE IT IS - AMERICA’S BIG SOLUTION
America’s Big Solution provides a starting point in your study of the FAIRtax and is meant for people of any age. And you can download it to your tablet or smartphone right now. It’s 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 in a booklet 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 (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
- YouTube channel for AFFT
- YouTube channel for The FAIRtax Guys
- The Official FAIRtax Logo Store (www.fairtaxlogostore.org)
- www.xcluded.tv - A new platform for FAIRtax Power Radio Video and other shows
- POPVOX - Make your FAIRtax voice heard on this national self-survey platform
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Thank you for staying FAIRtax strong!