THE “PRO-GROWTH” TAX PLAN—ANOTHER WAY OF SAYING WE KNOW BEST
There is a continuing discussion about what a pro-growth tax plan should contain. President Trump and Kevin Brady both have made statements stating that a pro-growth tax plan must contain lower corporate income tax rates and lower individual income tax rates. They believe that the more money Americans keep and spend, the more likely the economy will grow.
Almost all credible economists agree with this analysis and believe that the economy will grow faster under a tax based on taxing consumption at the time of consumption, the FAIRtax, than taxing consumption prior to consumption, the income/payroll tax. This has certainly proved true when you look at states like Texas and Florida which do not have a state income tax and rely on taxes levied at the time of consumption. Their growth rate is far higher than states with state income taxes.
Others, like President Obama and many members of Congress in his party, believe that economic growth is secondary to having a tax system that distributes money in the way that they have determined is “fair.” This approach requires the government bureaucrats to be more involved in directing how money is spent.
The two approaches seem to stem from attitudes toward how people will spend their money. The FAIRtax approach assumes that people will make the right choices for themselves and gives them all of their money. Supporters of this approach point to the high rate of charitable giving from Americans.
Supporters of the second approach seem to believe that people will only make the “right” choices if they have some incentive (others say are coerced) to do so. This is why the present income/payroll tax system takes the money prior to consumption and tells the citizen that if they want to have any of their money back, they have to spend it in ways that are deemed proper by Congress and the government bureaucrats. If you pay enough mortgage interest you can get back some of the taxes you paid, for example. However, if you pay rent you can’t because Congress and the bureaucrats have decided that it is better to be a home owner than a renter.
CITIZENS OR SUBJECTS
The Merriam Webster dictionary defines “citizen” as: a native or naturalized person who owes allegiance to a government and is entitled to protection from it.
It defines “subject” as a “vassal” which means: one in a subservient or subordinate position.
No one seems to dispute that there are legitimate duties of a government—even though there is a wide disagreement over the nature of these duties. No one disputes that governments need money to carry out their duties. There is a dispute as to the best way for government to obtain the operating funds it needs.
If you apply these definitions to the two approaches of taxation, taxing at the time of consumption—the FAIRtax, and taxing prior to consumption—the income/payroll tax system, it is clear that the FAIRtax system treats Americans as citizens and the income/payroll tax system treats Americans as subjects.
Throughout history, “subjects” have rebelled against their “masters.” If you look at the rapidly growing rates of income/payroll tax evasion—estimated to be $9 trillion over the next ten years, there is clear evidence that the “subjects” are rebelling against the government.
This revolt is only going to increase as more workers become self-employed and are not having their taxes withheld by an employer. This revolt will reach a critical mass when the losses in government revenue cannot be “covered up” with increases to our already massive public debt.
Rather than just label anyone evading the income/payroll tax system a criminal, which by our laws they are, we should heed this advice from Thomas Jefferson in a letter to James Madison in 1787:
"Societies exist under three forms sufficiently distinguishable. 1. Without government, as among our Indians. 2. Under governments wherein the will of every one has a just influence, as is the case in England in a slight degree, and in our states in a great one. 3. Under governments of force: as is the case in all other monarchies and in most of the other republics. To have an idea of the curse of existence under these last, they must be seen. It is a government of wolves over sheep. It is a problem, not clear in my mind, that the 1st. condition is not the best. But I believe it to be inconsistent with any great degree of population. The second state has a great deal of good in it. The mass of mankind under that enjoys a precious degree of liberty and happiness. It has its evils too: the principal of which is the turbulence to which it is subject. But weigh this against the oppressions of monarchy, and it becomes nothing. Malo periculosam, libertatem quam quietam servitutem. Even this evil is productive of good. It prevents the degeneracy of government, and nourishes a general attention to the public affairs. I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical. Unsuccessful rebellions indeed generally establish the incroachments on the rights of the people which have produced them. An observation of this truth should render honest republican governors so mild in their punishment of rebellions, as not to discourage them too much. It is a medicine necessary for the sound health of government."
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.
FAIRtax POWER RADIO
#131 POLITICS AND DIRTY TRICKS
This episode features wide ranging discussions about tax reform, elections, dishonest candidates and numerous questions from the viewers:
- What will it take to get the FAIRtax passed?
- Suggested that we write www.fairtax.org on every dollar bill we spend.
- Contact the President at www.whitehouse.gov/contact
- What is a VAT tax?
- Suggest you put FAIRtax cards in Halloween bags.
- Will the FAIRtax produce enough revenue?
Wonderful questions from our wonderful viewers produced a very interesting and educational video. Watch it. Learn from it. Share it with others.
Use FAIRtax Power Radio to educate yourself about true tax reform in our country and be sure to inform everyone you know about the new 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 FAIRtax Power Radio on 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 Facebook videos are saved to a number of 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.
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!
AMERICA’S BIG SOLUTION - IN AN EASY TO CONSUME VOLUME
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. 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. (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
- YouTube channel for The FAIRtax Guys
- The Official FAIRtax Logo Store (www.fairtaxlogostore.org)
- Xcluded.tv - A new platform for FAIRtax Power Radio Video and other shows.
Thank You For Opening The FAIRtax Chronicles, Our Sponsored Mailings
We plan to do several of these mailings each month. If you take a minute to open the sponsored emails and click through to the website, you are making an in kind contribution to AFFT. It is not required to actually make a purchase, but your minute of time will ensure that AFFT is paid ever larger amounts from people paying for us to send their offers to our supporters.
Again, we are making every effort to ensure that we work with only reputable companies. If you feel that any FAIRtax-sponsored email is objectionable, please email us at email@example.com and tell us why. You can also opt to not receive these sponsored email messages but still receive FAIRtax emails.
Thank you for staying FAIRtax strong!