Making Taxpayers Help Pay For Their Bad Deeds & Not Caring If We Know
Although we were very fortunate our daughter never had any drug problems, unfortunately many of our friends’ children did have drug problems. Tens of thousands of dollars were spent sending these young people for treatment, but many could not tolerate the pain associated with drug withdrawal and returned to using drugs.
In 2006, my Wife and I moved to Florida for the purpose of helping start Novus Medical Detox, a medical detox center, to help people withdraw less painfully from drugs and then allow them to move to treatment programs if needed. We learned many of the people coming to be detoxed were addicted to OxyContin prescribed by doctors and produced by Purdue Pharma. Purdue Pharma sales representatives were telling doctors their drug was not really addictive and it was safe to prescribe for a variety of treatments.
Of course this was a blatant lie. OxyContin is molecularly almost the same as heroin and is more accurately described as a pharmaceutical grade substitute for heroin. In fact, the only people who came to the detox addicted to heroin explained they started on OxyContin but switched to heroin because it was less expensive and easier to obtain.
The Sackler Family owns Purdue Pharma, a privately held company. The multiple investigations and lawsuits regarding OxyContin are revealing not only did The Sackler Family know OxyContin was being widely abused and was creating the same addiction as heroin, but were working to sell more OxyContin and find a way to hide the billions of dollars of profit their criminal drug was producing.
Opioid Lawsuit Settlements Appear Aimed At Giving Tax Breaks To Drug Firms, Experts Say
This is the title of an article written by Kevin McCoy published on-line by USA TODAY. Mr. McCoy pointed out:
- The $270 million settlement with Purdue Pharma announced by Oklahoma Attorney General Mike Hunter is the “latest chapter in a saga where U.S. corporations trim their tax bills by writing lawsuit settlements off on their taxes"
- Although the 2017 tax bill made it more difficult, it appears Purdue will pay a foundation and other bad actors were careful to label their settlements as restitution, thus making them deductible
- These corporate deductions reduce the taxes these corporations would otherwise pay and, effectively, pass along a substantial portion of the cost of these settlements to each of us
Of course, the ability to use the income-payroll tax system to pass much of the cost of their bad deeds onto the rest of us is not limited to the recent drug case settlements. Mr. McCoy also pointed out:
- JP Morgan Chase was able to deduct almost 1/2 of their $13 billion settlement for their issuance of the toxic mortgages which helped start the 2008 financial crisis
- A 2015 report calculated the 10 largest company settlements with Federal agencies between 2012-2014 totaled nearly $80 billion, and the payors were able to deduct at least $48 billion of the $80 billion
Yet Another Reason To Scrap The Income-Payroll Tax System
Why doesn’t Congress stop these outrages? Well they tried in 2017, but these bad actors used other provisions of the income tax laws to accomplish the same result Congress tried to prohibit.
The reason is, prohibiting deductibility of settlements for problems created by either the gross negligence or actual bad acts, like with the owners of Purdue, requires some proof of these bad acts. If an afflicted party is offered an amount of money they believe is acceptable, they are almost always willing to let the payor say anything they want in the settlement agreement. They don’t have to admit fault and are allowed to claim the money being paid is not a penalty or fine. Statements which would disqualify tax deductibility.
Trying to “fix” the present Internal Revenue Code is like pushing into a balloon. You make an impression where you push but it bulges out the other side.
Conclusion
The Swamp loves the attention being paid to the abuses by Purdue Pharma and its use of the income-tax code to reduce their costs and make the rest of us pay part of their settlements for their actions. Again, these are actions which The Sackler Family knew were literally killing people by the tens of thousands and ruining countless lives.
The Swamp knows when people demand Congress prevent such abuses, corporations will line up to give them money to protect this tax benefit. They in turn can then reward Members of Congress by purchasing fund-raising tickets and making campaign donations.
The Swamp is amoral about things like this. They have no problem representing the interests of bad actors if those bad actors pay them enough money. They have no problem harming us as long as they are paid.
Hopefully, if enough people point out their hypocrisy, at least some Members of Congress and members of The Swamp will have trouble sleeping and not enjoy the money so amorally obtained.
You want to end this amoral and obnoxious system fueling The Swamp and many Members of Congress? Replace the failed income-payroll tax system with The FAIRtax, the only true “Fair tax”!
Link To Kevin McCoy article published on-line by USA TODAY
Anyone who truly cares about the American people say, “It is time to pass The FAIRtax, the only “Fair Tax!"
The author George Bernard Shaw said, "You see things; and you say “Why”. But I dream things that never were; and I say “Why Not”.
We say to you President Trump, “Embrace The FAIRtax and 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!
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Read Evasion Study Summary
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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.
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This week's Episode #178 - "Of Volunteers & Seniors"
The FAIRtax Guys report on a followup email from Claude Mertzenich of Iowa. Claude is a very devoted FAIRtax Volunteer and has been working on his Representative Abby Finkenauer to educate her about The FAIRtax. He recently met time with one of her staffers Yeshi Abebe. While Claude continues to engage Representative Finkenauer, he also takes time to engage other citizens about The FAIRtax. Claude serves as a great example to Volunteers all across the country.
A timely email from Vince Radice alerted The FAIRtax Guys to an article on thebalance.com which attempts to give the pros and cons of The FAIRtax including it’s affect on Seniors. However, the author, like others, is stuck in an income-tax frame of mind and hasn't taken the time to thoroughly study The FAIRtax.
The FAIRtax Guys explain how her claims The FAIRtax would hurt seniors, would require a new agency to “enforce” it and require a prohibitively high tax rate are not accurate. It’s another website which reports incorrectly.
And don’t miss their report on the “New and Improved” FAIRtax Logo Store.
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!
Respectfully,
Steve Hayes
Chairman, Americans For Fair Taxation