UNINTENDED CONSEQUENCES:
FAKE TAX REFORM LEADS TO A MORE EVASIVE AND ABUSIVE IRS
Neither Speaker Ryan nor Chairman Brady want to foist a more aggressive and abusive IRS on taxpayers and voters. They are very supportive of the continuing cuts to the IRS budget. They are all over the media claiming the IRS will become much more service oriented.
However, the purpose of the income/payroll tax is to collect sufficient funds to fund the activities of government. Up to now, the effects of the growing evasion of the income/payroll tax system have been masked by deficit spending and adding to the national debt. It is a dirty little secret that the projected $559 billion 2017 budget deficit will be eliminated and a surplus created if tax evasion were fully addressed.
Preliminary findings from Dr. Richard Cebula’s income/payroll tax study show that if the current income/payroll tax system remains in place, between 2017 and 2026, the total amount of evasion is expected to exceed $9 trillion if the tax gap grows as it historically has done! Yes, $9 trillion!
The only way that the Ryan/Brady tax reform plan will work to fund the government is if the IRS is turned loose and given more agents to perform detailed audits and more prosecutors to bring fraud charges against many more thousands of taxpayers.
Senator Ben Cardin (D-MD ) knows about the increasing evasion and asked Treasury Secretary nominee Steven Mnuchin about hiring more IRS agents. "I assume you'll have an opportunity to talk to the president and hopefully get the number of people you need because they can't do it with their current workforce."
Mnuchin replied, "I can assure you that the president-elect understands the concept of when we add people, we make money," Mnuchin said. "He’ll get that completely. That's a very quick conversation with Donald Trump."
Simplifying the Tax Code Will Not Stop Evasion
To be fair, Mnuchin is simply stating the obvious- if you are going to keep the present income/payroll tax system you have to be willing to forcibly enforce it. Some of the D.C. elite are promoting the fallacy that “simplifying the income tax” will greatly reduce evasion.
At best this is naïve, at worst it is deceitful. As we explained in the February 3, 2017 Chairman’s Report, the income tax is not the biggest tax paid by most independent contractors or small employers. If you cut the income tax without cutting the Social Security and Medicare taxes and state income taxes, you still have a person who is now paying zero on the evaded income being asked to pay 30% to 40% in total taxes.
What Might Reduce Income/Payroll Tax Evasion
The only way to reduce income/payroll tax evasion is to dramatically increase IRS audits and criminal prosecutions of taxpayers. Evaders will need to see people losing their houses, their businesses, their savings and going to prison. Even then there are too many taxpayers and too many ways to hide income and falsify deductions and there will not be enough auditors to really stop evasion.
Perhaps if the people evading the income/payroll taxes filed their tax returns with a big red “E”, we would not be as concerned. These evaders are breaking the law and making those of us who comply pay more in taxes and adding to the national debt.
However, the evaders are not easy to spot and the only way is to subject all of us to these evasive and abusive audits. Armed with instructions to “catch” the evaders the IRS will “punish” all of us. In fact, it is likely that most of the people audited will be people who try to comply.
The problem is that compliance with every aspect of the Internal Revenue Code is almost impossible. No one understands it and the IRS auditor will often just make an assessment because no one knows the right answer. Because it will cost the taxpayer much more to contest the assessment than to pay it, the IRS auditor is able to extort money from taxpayers who have done only one thing wrong—not comprehend the incomprehensible Internal Revenue Code.
Getting Rid of a Bad Law
Abraham Lincoln said, “The best way to get a bad law repealed is to enforce it strictly.” The D.C. elite may get the fake tax reform done but this is just another example of the D.C. elite taking care of themselves at the expense of the rest of America.
We need to reach out to President Trump and his staff and point out the obvious, the D.C. elite is only looking out for themselves. If our new President wants to really help the rest of us he needs to enact real tax reform—Pass the FAIRtax!
DON’T MISS YOUR CHANCE TO HELP BRING ABOUT REAL TAX REFORM
Abraham Lincoln also 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-elect 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.
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FAIRtax E-Book
AMERICA’S BIG SOLUTION - An E-book For Beginners
You have to start somewhere. If someone needs to start from the beginning with the FAIRtax, this e-book is what they need. We all need to become engaged in order to force Congress and President Trump to adopt the FAIRtax as the new tax plan. We all need to come up to speed on the FAIRtax. This e-book is the first step.
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 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!
FAIRtax Power Radio
Weekly Podcasts and Monthly Facebook LIVE
Our last Facebook LIVE event was a great success and the next one will be better. At 8 PM (EST) on Monday, March 6, The FAIRtax Guys will host another Facebook LIVE event. If you watched last week (the video is still on The FAIRtax Guys Facebook page) you saw Sonny (Sr.) from Brooklyn extol the virtues of the FAIRtax. Anyone is likely to show up at one of our Facebook LIVE events. Be sure to tune in on March 6 to see if there is another guest.
And yes, we do a weekly podcast just for you. Though the “Hope and Change” of the last eight years and the promises to “Make America Great Again,” what is Congress and the new administration offering us as tax reform? At this point, both President Trump and the Speaker Ryan are offering a modification of the current failed system. As Kerry Bowers, one of The FAIRtax Guys interviewees, said about Speaker Ryan’s “A Better Way” plan, “It transforms the tax plan from a personal income tax, a corporate income tax and a payroll tax enforced and administered by the IRS to a system that includes a personal income tax, a corporate income tax and a payroll tax enforced and administered by the IRS.” Is this REAL reform? No!
As The FAIRtax Guys discuss in their weekly podcasts, this plan does not represent “Hope and Change” and is not the way to “Make America Great Again.” We need true tax reform; we need the FAIRtax. And we provide the listener new and novel ways to discuss the FAIRtax with your friends and neighbors every week.
You can listen to our FREE podcasts on Spreaker.com, iTunes or iHeart Radio. You can listen on line or download the podcasts to your computer or smartphone.
And for your iPhone or Android, we have the free FAIRtax Power Radio app. Just search for FAIRtax Power Radio in your app store, download the app and start listening. We post a new episode every Friday morning. Please listen in and tell everyone you know about the FAIRtax Power Radio podcasts.
Links for Further Information
Please, if you'd like to keep studying and promoting 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.
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AMERICA’S BIG SOLUTION
FAIRtax – REAL TAX REFORM
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VISIT: BIGSOLUTION.ORG
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