Is the FAIRtax fair?
Jeff CarterOur Chairman’s Report this week is based on an article written by Jeff Carter for the Epoch Times entitled, Is the Fairtax Fair?
Jeff is a graduate of the University of Illinois College of Business, and earned an MBA from the University of Chicago, Booth Graduate School of Business. Mr. Carter is a long-suffering fan of Chicago pro sports teams.
Jeff was a general partner at West Loop Ventures. In April of 2007, he co-founded Hyde Park Angels and spearheaded the growth and development of one of the most active angel groups in the United States. He has consulted on the startup of several other angel groups. He is a former independent trader and member of the CME Board of Directors and was part of a small group that transformed CME from an open outcry exchange to the largest electronic exchange in the world. In 1998, CME was worth $182,134,000 in membership enterprise value. Today it’s worth $80 Billion. Jeff also was a US representative to the first ever I7/G7 summit in Torino, Italy. In 2017.
He is a free-market advocate based on his experiences with free transparent marketplaces and is a believer in the FAIRtax and what it will mean for American citizens and economic growth.
Jeff has a substack. Here is the link. There is no charge to join and Jeff invites all of you.
Jeff says he is proud to be on our advisory board.
Here are some of the points Jeff makes in his article:
- A national sales tax is a far more economically efficient way to tax people.
- The wealthy won’t be able to employ accountants and lawyers to figure out ways to avoid taxation.
- It is also important to note that the fair tax is different from a flat tax. A flat tax is a tax on income. The Fairtax is a tax on consumption.
- The poor and middle classes benefit greatly from the Fairtax when compared to keeping our current system of taxation. Their standards of living and well-being rise at a faster rate than the wealthy.
- To understand the difference between the tax inclusive rate and the tax exclusive rate, here is an example. Suppose an item costs $100 before tax and is subject to a $30 sales tax. The tax-exclusive tax rate would be 30 percent, as the tax is 30 percent of the pretax selling price. The tax-inclusive rate would be about 23 percent, which is obtained by dividing the $30 tax by the total cost to the consumer ($100 + $30). The difference is whether or not the tax paid is included in the denominator when calculating the tax rate. The tax-inclusive rate is always lower than the tax-exclusive rate. The difference increases as rates rise.
- A switch to the fair tax would be best for everyone in the entire country, regardless of income levels 20-25 years into the future because all incomes would rise—and capital stocks and business investment would rise as well.
Jeff, and other successful people who will likely pay more money under the FAIRtax than under the present income/payroll tax, are publicly expressing their support for elimination of the corrupt and incomprehensible income/payroll tax system and replacement with the FAIRtax.
Why? Because it is better for Americans and America.
Now there is going to be a vote on FAIRtax in U.S. House of Representatives. It will show what the Members believe is best for the American people.
- Do Members of Congress endorse the corrupt income tax and the IRS or do they endorse the FAIRtax--the best solution for the American people.
- Do Members want Americans to continue to file more and more complicated and intrusive tax returns and be subject to arbitrary IRS action or not?
- Do Members want Americans to see the true cost of their federal government on each purchase of new goods and retail services or not?
- Do Members support the largest transfer of power from the federal government to the people, the FAIRtax, or not?
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.”
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