THE PREBATE--HOW TO EXPLAIN
One of the features of the FAIRtax that distinguishes it from a "regressive" sales tax or other excise tax like the gas tax is the fact that each month a payment is received equal to the amount of the FAIRtax that would be due on the monthly spending up to the poverty level.
A family of four receives $623 per month to pay the FAIRtax on the first $2,706 they spend each month. This is called the "prebate" because it is delivered to the family at the beginning of each month before they spend the money instead of after the money has been spent.
For example, under the current system, a family earning $2,706 per month will pay a minimum of $207, 7.65% of $2,706, in Social Security and Medicare taxes. This means that instead of having $2,706 to spend, they only have $2,499 to spend.
Under the FAIRtax, the same family will have the entire $2,706 to spend each month. In addition, if the family spends 10% of their money on used goods, these purchases are not subject to the FAIRtax and the family will have an additional 10% of the $623 prebate to spend. Finally, most people ignore the benefit if prices come down by even 10%. This is a low estimate, but even a 10% reduction in prices provides the family the ability to purchase not $2,706 worth of new goods and services but $2,980 of new goods and services.
This family has an additional $500 per month of spending power after the FAIRtax becomes law.
Prebate As The Excuse For Not Supporting The FAIRtax
It is frustrating when you go into a Congressional office or hear a friend say that they will not support the FAIRtax because the prebate is just another government benefit that will become a permanent entitlement and just further expand government. Of course, without the prebate feature, the FAIRtax will not be "progressive" and this is of course another reason that the Member or friend cannot support the FAIRtax.
This brings to mind George Washington's attitude toward excuses. Washington was known to have a short temper when someone tried to offer an inadequate excuse for not getting something done. He said, “It is better to offer no excuse than a bad one.”
These self-serving criticisms of the prebate are even more puzzling because many of these same people are ardent supporters of many income tax credits and deductions. These same critics see nothing wrong with the solar energy tax credit or the electric car tax credit or the standard deduction or the home mortgage deduction or the charitable deduction or the deduction for employer-paid health insurance.
The Truth About Income Tax Credits and Deductions and the Prebate
Our politicians have promoted that they are giving people something when they "allow" income tax credits or deductions. They don't want us to realize that income tax credits and deductions, in almost all cases, just return to us some of the money that we were forced to pay in taxes.
Of course, these "benefits" to the taxpayer are not received in advance of when their money is taken on a weekly or biweekly basis, but only after filing a person's income tax return--most often 13 or more months later.
In the same way that income tax deductions and credits are intended to make the income tax "fair" and less "regressive", the prebate makes the FAIRtax a more "progressive" tax.
Of course, both the income tax and the FAIRtax could be assessed at a much lower rate if there were no credits or deductions or the prebate. All of these reduce the amount of money any tax will collect.
The next time someone tells you that they don't like the prebate because it is a government entitlement, ask them if they are in favor of the standard deduction or other income tax credits or deductions. Almost always, they will say that of course they favor income tax deductions and credits.
Then just explain that the prebate is no different than a tax credit or a deduction. Economically, the prebate is a return to the taxpayer of money that would have been paid in taxes--a tax credit.
If the objections to the prebate are coming from the D.C. Elites who make fortunes by marketing income tax credits and deductions, we should remember Ben Franklin's words, “He that is good for making excuses is seldom good for anything else.”
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.
SOCIAL SECURITY - THE FAIRTAX MAKES IT STRONG
FAIRTAX POWER RADIO EPISODE #68
Social Security - love it now or love it later. Currently, funding for Social Security and Medicare is on shaky ground because of our archaic tax system. We need a 21st Century tax system - The FAIRtax. Under the FAIRtax, EVERYONE who makes a purchase or pays for a service will support Social Security and Medicare. The FAIRtax Guys explain in detail how the FAIRtax will save what is for some people the only retirement system they will ever know. Listen, learn and help educate others.
Yes, we love to bust on the IRS - but they make it so easy. In last weeks podcast, a case of IRS abuse, kept quiet for two years, made headlines in the national news and all the social media sites. So egregious was this incident that The FAIRtax Guys felt compelled to lay it out in excruciating detail. And to make matters worse, when the IRS is forced to defend itself in court, guess who pays the bill? Yep, the American taxpayer! Listen and then take action to help us get the FAIRtax thru Congress and on the President’s desk.
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.
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!
SHARE "AMERICA'S BIG SOLUTION" WITH A FRIEND
OK, so Tweeting, Sharing and Liking is NOT your thing. You spend very little time social media but you know someone who would appreciate a quick introduction to the FAIRtax. We’ve got just what you need!
Some people prefer to read about a new subject instead of searching a website. If this describes you or someone you know, we have the solution - AMERICA’S BIG SOLUTION which is an inexpensive e-book written as an introduction to the FAIRtax.
AMERICA’S BIG SOLUTION is available for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS.
AMERICA’S BIG SOLUTION by Florida Volunteer Terry Tibbetts has been written to give people of all ages a basic introduction to the FAIRtax and encourage them to learn more about the most thoroughly researched tax plan ever presented to Congress. It is a light hearted approach to a very serious subject.
Everyone needs to know that we have an alternative to federal income tax and the criminal enterprise known as the IRS. Everyone needs hope and AMERICA’S BIG SOLUTION provides that hope. AMERICA’S BIG SOLUTION is an alternative to the social media platforms competing for our attention.
You can even 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
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 firstname.lastname@example.org 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!