Chairman’s Report - September 25, 2015

Why the FAIRtax Funds Social Security

Sometimes people ask why funding for Social Security is included in the FAIRtax.  Obviously one reason is that many Americans pay more Social Security payroll taxes than income taxes. By eliminating the payroll tax and the income tax, we allow workers to obtain their entire paycheck with no federal deductions.  

Another reason is to protect  the solvency of the Social Security system. When th Social Security started in 1935, the average life expectancy was 61 years old.  In 1940, the number of workers paying for each retired worker was almost 160.  Today the life expectancy of retired workers is now between 76 and 80 and the number of workers per retiree will be below 2.8 for each retired worker by 2020.  This is very important because to support the current pay-as-you-go system, 2.8 workers are needed per retiree.

 Social Security will become increasingly insolvent and is not sustainable.  That is why many younger people believe that they have  a greater chance of riding in an alien spacecraft than receiving Social Security.

By funding Social Security through the FAIRtax we are ensuring the solvency of Social Security.  Under the FAIRtax,  all of the consumers in the United States will be funding Social Security.  

When writing your Member of Congress or speaking to him or her, it is good to point out  this benefit of the FAIRtax because this is a problem they know has to be solved. 
  

Ask If The Flat Income Tax Will Stay Flat?

Many of our friends and neighbors are fans of the flat income tax.  They believe that the flat income tax will simplify the income tax like the politicians in D.C. promise. My suggestion is not to immediately disagree.  It is true that the flat income tax can be designed to have many of the consumption related benefits of the FAIrtax.  

However, because it is an income tax, the flat income tax is simple to complicate and no longer be flat.  The Tax Foundation calculated that by 2007, there had been 15,000 changes to the 1986 tax reforms.  There have been many more in the past eight years.

In the real world, outside of Washington, D.C., if you ask a group of people to raise their hands if they think the flat income tax will stay flat for five years, no hands will be raised.  In fact, it is normal for people to start laughing at the absurdity of Congress and the special interests not immediately adding back the “tax benefits” removed and making the income tax more and more complicated.

If you ask a friend or neighbor how long they think it will stay flat, most will agree that probably not that long.  You can then point out that the FAIRtax will be much more difficult to change because it is transparent.  Everyone will see any changes D.C. and the lobbyists attempt to make.  

This does not attack their idea but simply points out that in practice the better way to have real tax reform is to adopt the FAIRtax.

September Washington Trip

Peggy will provide a full report in next week’s FAIRtax Friday, but wanted you to know that progress is being made and we expect to make some significant announcements in the next few weeks.

FAIRtax Power Radio and Would Thomas Jefferson Think We Are Free

Whether you’re a FAIRtax volunteer or an informed citizen who wishes to be better informed, we encourage you to listen to FAIRtax Power Radio, the online radio show that is available when you are.  The FAIRtax Guys discuss and analyze the problems with the current income tax system and the best replacement, the FAIRtax. We also have great guests periodically such as area business people, a Congressman, leaders within the FAIRtax organization and even Thomas Jefferson and Rod Serling (Program 19).  FTPR is FREE to the listener on two different websites - SoundCloud (http://bit.ly/1KNsOof) and YouTube (http://bit.ly/1PZUFVU).  Both SoundCloud and YouTube have free apps for smartphones so you can listen while you’re on the go.  Our goal is to offer a discussion of the most thoroughly researched tax reform proposal, the FAIRtax, and make it seem like a family discussion at the kitchen table. Listen to our programs and then tell your friends and relatives about the show. 

1040 Club
 
Thanks to each of you that have joined the 1040 Club.  You are ensuring that Americans For Fair Taxation can continue to promote the FAIRtax.

If you are not a member of the 1040 Club, or if you are a member but want to join for someone else, please go to this link and sign up. 

AFFT National LOGO Store and Scrolling Signs

Going into the primary system, it is even more important that all of us have FAIRtax signs that we can bring to political rallies.  Many venues will not allow us to bring signs attached to metal or wood holders.  That is why Rudy Treml designed and had printed the scrolling FAIRtax signs. Visit our National Store at www.fairtaxlogostore.org and purchase some Personal FAIRtax℠ Scrolling Handheld Event signs.

It is a handheld scrolling event sign printed in color on both sides with our new logo. When folded up, this banner is only 2” x 9” but opens up to a 27” x 9” presentation
which self-retracts. It is ideal for all political events and easily fits in a pocket, jacket or purse when not in use.  To see a picture of this banner please click here.


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Thank you for staying FairTax strong!