The Chairman’s Report April 28, 2023

  • by:
  • Source: FAIRtax
  • 04/27/2023

Top 10 Reasons Democrats should support the FAIRtax

Dr. Karen Walby
The 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. 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 (  


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.
If Members think that the FAIRtax needs to be changed, then they can propose the change.  Don’t let them reject the entire bill because it has a “flaw” that can be easily addressed.  

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!
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.”
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!

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 for all future years.
Please go to this link to invest in AFFT.  It’s an investment in your and your family’s future. 

Help FAIRtax Become The Number One Issue in 2024

Enacting the FAIRtax must be a prominent topic in these times. We did it before, we can do it again, but we need your help!

Help out with a One-Time Contribution

Your gift of $25, $50, $100 – even $1,000 or more if you can possibly spare it – will help bring an end to the IRS and promote a FAIRtax. So, I urge you, please give as generously as you can.

Billing information (REQUIRED)

Payment information (REQUIRED)

To donate by check:
Americans for Fair Taxation
PO Box 4929
Clearwater, FL 33758

If you need to make changes to your existing Monthly Re-Occurring Donation with new card or billing address information, then Please call Adam Yomtov our New York State Co-Director. He is assisting with the administration of our donations, technology services, and website.

Please note: Inputting your new information at our website won't update your donation. The only way to update is by calling Adam Yomtov 917-689-3931 mobile.

Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!