Top 10 Reasons Democrats should support the FAIRtax
Dr. Karen WalbyThe following article was done by Dr. Karen Walby.
Top ten reasons why Democrats should strongly support the FairTax
Reason 1: The FairTax meets the entire Democratic tax agenda, starting with progressivity.
The FairTax is far more progressive than the current income tax system. Under the FairTax, low-income households experience five times the benefit increase as compared to high-income households. And a switch to the FairTax causes real wages to rise.
Reason 2: The FairTax eliminates the highly regressive tax on wages of the working poor and middle class. The FairTax removes the single most regressive element (the payroll tax) for wage earners. Payroll taxes are currently imposed on the first $160,200 of earnings but drop steeply to only a few percent above that amount. The FairTax repeals this unfair tax and allows wage earners to keep their entire paycheck. According to Robert Reich, former US Secretary of Labor, “Everyone hates taxes, but the payroll tax has got to be the worst. Four out of five American workers pay more in payroll taxes than they do in income taxes. The payroll tax is also regressive as hell -- poorer workers pay proportionately more than richer ones.”
Reason 3: The FairTax is the only plan that completely untaxes the poor. Even a person with a zero percent income tax rate today must pay payroll taxes on the first dollar they earn and also pay hidden federal taxes in the prices of everything they buy. The FairTax removes these hidden taxes, eliminates the payroll tax, and holds all taxpayers harmless against any taxes on essentials such as food, clothing, and shelter.
Reason 4: The FairTax stops the export of jobs. Our income tax favors imports over U.S. production by exempting imports from U.S. tax, and we penalize U.S. exports by allowing foreign nations to impose taxes when our goods enter their shores. This adds up to an average 17 percent price advantage over U.S. produced goods, which greatly depresses U.S. exports and costs us jobs. The FairTax stops this abuse by taxing all goods consumed in the U.S. alike and untaxing exports.
Reason 5: The FairTax untaxes education. The FairTax rewards education and upward mobility in the simplest and most powerful way: It eliminates tuition from all federal taxation. This allows individuals to apply their whole paycheck to tuition before any taxes are taken out.
Reason 6: The FairTax is the only plan that targets and taxes existing wealth, not the fruits of labor. The FairTax will tax every dollar of accumulated wealth in the most efficient way possible – when it is spent. Tax shelters, loopholes, or other gimmicks to shield large wealth from taxation will be a thing of the past.
Reason 7: The FairTax boosts the real growth and prosperity of the U.S. Independent research studies confirm the powerful economic effects. Beacon Hill Institute predicts that real GDP would be 10.3 percent higher in just four years under the FairTax. Economist Laurence Kotlikoff, Ph.D., predicts the capital stock to be 43.7 percent higher by 2030, leading to real wages that would be 11.5 percent higher in 2030 than otherwise would be the case if the current tax system remained in place.
Reason 8: The FairTax is revenue neutral. The FairTax, at a 23 percent tax-rate, raises the same amount of money for the federal government as today’s income tax system. This means that steep budget cuts are not required to pass meaningful tax reform.
Reason 9: The FairTax promotes the American Dream. The FairTax makes home ownership more affordable because used homes are totally untaxed, and three out of four homebuyers buy used homes. For new and used homes, the FairTax does not tax the earnings used to pay mortgages, interest rates will be lower under the FairTax, and a homebuyer can save for a down payment faster than under current law.
Reason 10: The FairTax is not a political slogan. FairTax.org is nonpartisan. Our broken tax system hurts every American, and it will take leaders from all parts of the political spectrum to fix it.
A more detailed version with research sources can be found at this link: The FairTax is Far More Progressive Than the Current System (ignitecdn.com)
As Dr. Walby’s statements show, there is no logical reason that Democrats will not support the FAIRtax.
When there is no logical reason, then we must look for the real reason—control and class strife. If there is no income/payroll tax system, D.C. is unable to fan the flames of some people not paying their “fair” share and how this creates a punishment for the rest of us.
All the while, D.C. is pulling in huge donations from people who are seeking to have income tax benefits for which the rest of us pay.
D.C. likes the fact that Social Security/Medicare may be going broke. They want all seniors to be afraid and see D.C. as their only salvation. This gives them the control they lust for in all of their dealings.
They will lose this ability to create fear in the minds of seniors when Social Security/Medicare is funded through the FAIRtax—then it will be solvent from now forward.
Isn’t it time to end this ludicrous tax collection system and the IRS?
When the FAIRtax is enacted, there will be no need to fear being audited by the IRS because there will be no more IRS.
Under the FAIRtax, there will be no more tax returns. We will pay our taxes when we make retail purchases of new goods and services.
There is going to be a vote on the FAIRtax in the House of Representatives. McCarthy and the other elites didn’t want it, but it was forced on them.
We now have the opportunity to force all Members of the House to show where they stand. They can:
- Vote for the present income/payroll tax system or for the FAIRtax.
- Support the corrupt income tax and the IRS or eliminate it. It can’t be any simpler than that.
- Hide the true cost of their government or pass the FAIRtax and show everyone the true cost of government on each retail receipt.
- Support the largest transfer of power from government to the people, the FAIRtax, or not.
Please stand with us and demand that your representative support a much fairer, much simpler and much more efficient way to fund the government—the FAIRtax!
The FAIRtax doesn’t pick winners and losers. Because it taxes spending, not earnings, the FAIRtax lets everyone save for their retirement tax free.
The FAIRtax collects the revenue that the federal government needs to operate but does it in a way that has the least impact on our individual freedom and the least impact on our economic prosperity.
There are no tax returns to file and no records to keep. We pay our federal taxes when we make retail purchases of new goods and services, and there is no need for the IRS. If you sell a used couch or used jet ski online, there is no FAIRtax due on that transaction.
The FAIRtax will allow us to TAKE BACK CONTROL.
The income/payroll tax system is broken and no longer working—we can’t repair it but we can replace it with the FAIRTAX!
Join us and TAKE BACK CONTROL OF OUR COUNTRY AND OUR LIVES—NOT WITH BULLETS BUT WITH THE ELIMINATION OF ONE OF THE BIGGEST THREATS TO OUR LIBERTY AND ECONOMIC PROSPERITY—THE INCOME/PAYROLL TAX.
We all should remember Edmund Burke’s warning that applies to our efforts to TAKE BACK CONTROL,
“Nobody made a greater mistake than he who did nothing because he could do only a little.”
We should also remember this quote from George Orwell's 1984, which, if we do nothing, may foretell your and your 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?
We can write letters and make calls to our elected representatives and attend Zoom town hall meetings demanding that if they really want to allow Americans to “TAKE BACK CONTROL”, the first step is to eliminate the income/payroll tax system and enact the FAIRTAX!
TAKE BACK CONTROL! Help us PASS THE FAIRTAX!
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