Grassroots Corner - November 1, 2019

The Democratic Presidential Candidates are dropping in proposals to make themselves stand out from the pack and these proposals can present opportunities for us to promote The FAIRtax.

One proposal comes from Andrew Yang, titled the “Freedom Dividend”,  where $1,000 a month is given to every American adult over the age of 18.  We recently seized on this proposal as a starter to contact the Yang campaign because of its superficial similarity to The FAIRtax “Prebate”.  We thought the Yang campaign might want to take a look. Yang, by the way, is gaining strength.

Obviously there are differences in our proposals.  The Yang campaign is suggesting its Freedom Dividend go only to US Citizens.  Our Prebate goes to every household whose members are lawful residents, which would include both citizens and lawfully-resident non-citizens.

Our Prebate wouldn't go to non-citizens who are not lawfully in the United States.  Neither would Yang’s Freedom Dividend.

Another difference is the Freedom Dividend is an unearned benefit.  The Yang Campaign explains the proposal as being independent of one’s work status to enable all Americans, particularly those displaced by automation, to pay their bills, educate themselves, start businesses, be more creative, stay healthy, relocate for work, spend time with their children, take care of loved ones, and have a real stake in the future.

It will be illegal to lend or borrow against one’s Dividend.  Universal-Basic-Income at this level would permanently grow the economy, so the Yang Campaign argues, by 12.56% to 13.10%, or about $2.5 trillion by 2025 and it would presumably increase the labor force by 4.5 to 4.7 million people.

Our Prebate, by contrast, is not an unearned benefit.  Our Prebate is an advance refund of tax paid on consumption of necessities.  But like the Freedom Dividend, the Prebate has the same effects, including helping people displaced by automation.  Both proposals, by the way, are independent of income and do not penalize Americans for working.

There is another HUGE difference.  Mr. Yang is proposing to fund the Freedom Dividend out of welfare offsets and imposition of a new 10% Value Added Tax which keeps the existing income, death and payroll-self-employment-taxes.

Our Prebate is funded from a new retail consumption tax which REPLACES our entire federal-income-tax-system and payroll-taxes.  No More 1040's, No More IRS, the April 15th "DEAD"line becomes another blessed day and you receive 100% of the "Fruits Of Your Hard Earned Labor".

Will the Yang Campaign respond to us?  Check Mr. Yang!  Its your move!

Those who see our outreach are starting to see us as non-partisan and genuinely interested in improving the way our government is funded.  Ours is indeed a serious tax-reform-proposal.

Meanwhile, Claude Mertzenich, whom we featured several Grassroots Corners ago, continues to pound the staff of Abby Finkenauer, his Democratic Iowa Representative.

Following his meeting with her District Director, he reached out to her Legislative Director with fresh facts and arguments.  These outreaches are the type of activity we need to be doing more of!

Can you think of FAIRtax features that would appeal to your Democratic Congress Members or other Presidential Candidates?  Please let me know.