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.”
WHAT CAN EACH OF US DO
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.
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
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.
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital in 2017.
Please go to this link to invest in AFFT and in your and your family’s future.
ANSWERING THE FREQUENTLY ASKED QUESTIONS ABOUT THE FAIRTAX
FAIRTAX POWER RADIO EPISODE #73
What better way to discuss the basic concepts of the FAIRtax than to address the Frequently Asked Questions found on the main AFFT website: www.fairtax.org The FAIRtax Guys tackle the most common questions and give more details than offered on the website. This is a great way to brush up on the foundational principles of the FAIRtax.
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.
PLEASE HELP US spread the word about the FAIRtax and FAIRtax Power Radio. Telling your friends and relatives about our free weekly podcasts is a great way to help us garner more support. Help us keep America informed for it is the American people who must demand REAL tax reform in Congress.
You can listen to FTPR on any platform - Mac or PC, iPhone or Android. And it’s 100% free.
Listen on Spreaker, iTunes or iHeart Radio on your computer or smartphone. Spreaker, iTunes and iHeart all have free apps. But 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. 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.
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.
Learn more. Get involved. Make it happen!
ONLY A FEW COPIES LEFT - GET YOUR SIGNED COPY OF AMERICA'S BIG SOLUTION
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.
If the FAIRtax Logo Store has sold out of the signed copies, you can buy an electronic or print version of ABS as follows: AMERICA’S BIG SOLUTION is available 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. 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
- The FAIRtax website at which you can get involved to help make it happen.
- 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
- Provides FAIRtax promotional materials with authorized AFFT logos.
- Do your shopping, save money and support the AFFT
- The Official FAIRtax Logo Store
The FAIRtax Logo Store
Supplying Educational/Promotional Items
AMERICA'S BIG SOLUTION BOOKLET
ENTER PROMO CODE FAIRTAX07 AT CHECKOUT TO RECEIVE A 20% DISCOUNT
ON YOUR ENTIRE ORDER PLUS FREE S/H DURING THE MONTH OF AUGUST.
AMERICA’S BIG SOLUTION BOOKLET
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.
Accordingly, your LOGO Store is pleased to offer NEW AUTOGRAPHED ABS booklets for only $10.00 each PLUS free shipping PLUS another 20% discount during the month of August.
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.
Ron also co-hosts a weekly FAIRtax℠ radio show with Bob Paxton called FAIRTAX POWER RADIO (FTPR). This is a weekly podcast which you can listen to on any platform – Mac or PC, IPhone or Android 100% free. This volunteer team posts a new episode every Friday morning. Listen on Spreaker.com, iTunes or iHeart Radio 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.
When visiting the Store to purchase your autographed ABS booklet, please consider other FAIRtax℠ promotional items. And remember, you will receive a 20% discount on your complete order when inserting the discount code (FAIRTAX07) upon checkout and of course, S/H is free.
The FAIRtax℠: Once You Understand It, You’ll Demand It!
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