Chairman's Report – September 8th, 2017

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Chairman's Report – September 8th, 2017

The only way for Congress and the D.C. Elites to keep the current income/payroll tax system is to dramatically decrease the estimated $9 trillion of illegal evasion over the next ten years.  They have been covering up the evasion problem by borrowing money, but even Congress and the D.C. Elites are seeing that this cannot continue indefinitely.  The great unwashed are getting restless and questioning their rulers in D.C.

How do they reduce evasion under the present income tax system?  The only way is to greatly expand the activities of the IRS.  Now, only .7% of the filed returns are audited and 70% of these audits are correspondence audits where you are asked to explain why you did not include some income or to provide other information.  Correspondence audits rarely detect evasion.

If you have dealt with the IRS, you know that many of them are decent people doing an increasingly unpopular job--taking money away from us.  However, like all positions that give  people power over others, the IRS seems to attract people who enjoy creating problems for people.  

In 1887, British politician known as Lord Acton said, "Power tends to corrupt, and absolute power corrupts absolutely.”  It is frightening to consider giving the IRS absolute power which is what they will need to combat criminal evasion.

Our Changing Labor Force

Another problem for Congress and the Elites is that our labor force will be 40% non-traditional workers by 2020.  This means that more and more people will be in the position of receiving all of their money as independent contractors, and then being asked to pay their taxes which are not withheld at the source.

Much to the chagrin of Congress and the Elites, these groups are not choosing to pay the income/payroll taxes they owe.  Because there is no withholding, Congress and the Elites are not able to grab the income/payroll taxes before the employees get their check.

An Example of IRS Abuse

The Treasury Inspector General for Tax Administration (TIGTA) is charged with examining the activities of the IRS and pointing out when the IRS gets it right and when it gets it wrong.  In a report filed by TIGTA, it was found that the IRS seriously abused their power.

The report found that the Internal Revenue Service’s (IRS) Criminal Investigation (CI) division is charged with enforcing the Bank Secrecy Act’s (BSA) anti-structuring provisions.  In short, this law requires financial institutions to report currency transactions in excess of $10,000.  It is a crime to structure currency transactions in such a way as to avoid the filing of the report, and subjects people making smaller deposits to avoid these reports to civil or criminal forfeiture proceedings. 

The TIGTA audit was started after complaints from taxpayers about improper seizures of property without sufficient evidence of a crime. 

TIGTA determined that 91 percent of the forfeitures investigated were improper.  Instead of hiding illegal money, these 91 percent of forfeitures were seized from businesses and individuals whose funds were obtained legally. Most people impacted by the program did not appear to be criminal enterprises engaged in other alleged illegal activity; rather, they were legal businesses such as jewelry stores, restaurant owners, gas station owners, scrap metal dealers, and others. 

The report also pointed out that one of the reasons why legal source [not sure what “source” is doing here?] cases were pursued was that the Department of Justice had encouraged task forces to engage in “quick hits,” where property was more quickly seized and more quickly resolved through negotiation, rather than pursuing cases with other criminal activity (such as drug trafficking and money laundering), which are more time-consuming.

TIGTA determined that, in most cases, the IRS generally relied on the pattern of currency transactions to support the seizure, rather than initially seeking information from the property owners. When property owners were interviewed after the seizure, agents did not always identify themselves properly, did not explain the purpose of the interviews, did not advise property owners of any rights they might have, and told property owners they had committed a crime at the conclusion of the interviews.

TIGTA also found that, in 54 cases, property owners gave reasonable explanations for why currency transactions did not exceed $10,000, and, in most cases, TIGTA found no evidence that these explanations were investigated.


The IRS has promised to stop abusing its power.  However, few of us believe that they actually will.  Picking on small business people and individuals and then extorting a "settlement" of a portion of the illegally and wrongfully seized money is too tempting.  

They don't want to go after the drug dealers and criminals because they might get shot.  So, they look for the easy prey who will not be able to fight back or fight them.

If you think it is bad now, think about how much worse it will be when Congress and the D.C Elites realize that they have to confront the evasion crisis.  That is our future if we keep the income/payroll tax.

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. office of the 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.


Because of the varied attacks on the Ryan/Brady income tax plan, the White House has announced that they need to start over to determine the best tax plan to propose.

Abraham Lincoln said, “Things may come to those who wait, but only the things left by those who hustle.” 

We may only have a limited time to stop the fake tax reform being promoted by some in Congress.  If it passes, then the Elites will say that we need to wait before we consider any more changes.  To stop this fake reform, we must be able to ensure that our message is clearly heard not only by Congress but also by President Trump.  To do this we need your help.

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Last week’s show was based on a question from a recent FAIRtax Guys Facebook LIVE event concerning the state sales tax and the FAIRtax.  After all, it’s great idea to get rid of the income tax and the IRS but we don’t want a huge sales tax either. Fear not, The FAIRtax Guys explain how the price of goods and services will not climb through the roof when the FAIRtax is implemented.  In fact, as you’ll see in this episode, people will generally end up with more money in their pockets with the FAIRtax. The FAIRtax Guys love doing episodes based on listener questions, so enjoy this episode and don’t hesitate to contact them if you have a question about the FAIRtax.
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As stated earlier, we post a new episode every Friday morning.  Please listen in and tell everyone you know about the FAIRtax Power Radio podcasts. 
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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.  For a limited time, you can purchase a print copy, signed by both Terry and Ron from the FAIRtax Logo Store.  Go online now and get your copy before they sell out. 

America’s Big Solution is meant for people of any age who would like an introduction to the FAIRtax and would prefer to read about it rather than search online for Tweets, Posts and Shares. 

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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!

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America’s Big Solution (ABS) booklet is an simple 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 FFTEA. While supplies last, you can purchase a hard copy of this 23 page ABS booklet printed July 2017 and autographed by both Terry and Ron. They are both volunteers continuously educating the public on the merits of the FAIRtax℠ and this booklet is an extension of their efforts.  
The purpose of this ABS booklet is to introduce voters to the FAIRtax℠ concept. It is not a comprehensive treatment of the subject but rather a few pages to “wet one’s appetite” to get involved.
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SO, your cost is only $8.00 in August per autographed ABS booklet delivered to your home. Great deal !! Remember to enter the discount code “FAIRTAX07” at checkout to receive your 20% discount. 

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