THE FAIRTAX WILL HELP BALANCE THE FEDERAL BUDGET
One of the things that President Trump recognizes is that you not only have to accomplish things, but you must also make sure that people understand that these things are good for them.
For example, every day there are new revelations from DOGE about government waste by federal agencies. While most all Americans are delighted to see that their taxpayer money is not going to be wasted, there is a feeling of confusion because most people can’t see how cutting out that waste benefits them.
The obvious place where people should see the reduction in waste is in the federal budget. If $1 trillion of waste is cut from the U.S. budget, then that’s $1 trillion less in taxes we should have to pay. Make sense?
Unfortunately, that seemingly simple example is rendered a good bit more complicated by the fact that the present income/payroll tax system is designed to hide the true amount of federal tax that Americans pay.
We are often told that if you want to know how much you’re paying in federal taxes, just look on your paystub and see how much is being taken out. Better yet, just check your 1040 form. The number you’re looking for is right there.
Of course, this is simply another Washington trick and it’s not true.
The DC Elites don’t want you thinking about the hidden tax costs passed on to you in the prices of everything you buy. They’ve designed the system so that you’re paying thousands of dollars more in taxes than your 1040 form shows, and you don’t even realize it.
Even the Elites will agree that a for-profit business has to make a profit in order to stay in business. That means that the prices they charge for their products and services have to be high enough to cover all their costs plus a little bit for profit. What they don’t want you to notice is that those costs include:
- 7.65% Social Security tax on the wages of every employee
- The business federal income tax on their earnings
- Federal excise taxes on utilities, air travel, and fuel
- The accounting cost to collect and account for the payroll and income tax
Let’s say that you have a product that would sell for $95 if none of the above mentioned taxes existed. There will be variations across different products, but in this example, let’s say that the business has to charge an additional $5 to cover those tax costs.
This brings the price up to $100, but that’s not going to be enough. Remember, the company has to make a profit in order to stay in business and provide an income to its owners. If the company wants to make a 10% profit, it will sell the product for $110.
$.50 of the extra $10 will be because of the tax related costs. Another thing you’re not supposed to think about is the fact that the products we see on the store shelves go through a long production chain—like lumber that is cut and goes to the mill and then the wood is sold to the pencil company. The pencil manufacturer sells to a wholesaler which sells to the retailers which sell to you.
Tax costs force mark-ups all the way through the production chain. By the time a product gets to you, those mark-ups make up a significant portion of the price you pay—and you never see them. You have no idea they’re even there. Your receipt doesn’t show you how much of what you paid for an item goes to cover all the taxes imposed along the entire length of the production chain.
HOW THE FAIRTAX IS DIFFERENT
The FAIRtax is a federal retail sales tax charged on purchases of new retail goods and payment for retail services—like haircuts. The tax rate is adjusted to raise the amount of money needed to keep the federal government running.
The math is easy. You don’t need a quantum computer to figure it out. It can be easily calculated on your mobile phone calculator.
If the FAIRtax rate is set to raise $5 trillion and there is a $1 trillion dollar saving from cutting government waste, the FAIRtax rate can be reduced by 20%. If the federal budget is cut $2 trillion then the rate can be reduced by 40%.
Those kinds of reductions will be seen immediately by every American who buys things. When people see that cutting government waste results in lower prices at the cash register, there will be a demand to cut more waste so that their FAIRtax rate can be reduced even further.
CONCLUSION
Many people are confused as to how anyone could be against reducing government waste, but numerous lawsuits have been filed challenging DOGE’s authority and trying to deny them access to government records. We’ve seen some federal judges who seem to be in league with the people wanting to stop the cost cutting and preserve the current level of waste and inefficiency.
One of the major problems in having a bloated federal bureaucracy is that the people running that bureaucracy tend to look out for their own best interests and not the best interests of the American people. They’re focused primarily on raising their own pay and benefits and protecting their own jobs. It’s been that way for decades and they’re going to do everything in their power to keep it that way.
As DOGE is finding, many of the jobs done by the federal bureaucracy can be replaced by using technology that everyone in private business have been using for years. Not only will this reduce the number of federal workers needed, but it will also result in much better service for the American people.
In President Trump, we finally have a President who sees that cutting government waste is important. He also sees that the corrupt and incomprehensible income/payroll tax system has to be eliminated if America is once again going to be free and prosperous.
Many of you have labored tirelessly for freedom from the federal income tax and the IRS. You deserve a great deal of credit for your efforts to educate the American people on the need to fund the American government in a way that is good for America and returns freedom to the American people.
It is imperative, though, that we don’t replace the current income tax and the IRS with an alternative system that can still be manipulated by the Ruling Elite. We must let Congress and the President know that the best way to replace the income tax and the IRS is with the FAIRtax.
Make no mistake about it. The FAIRtax is a grave threat to the Ruling Elites. It will strip them of their power and their ability to control us though the tax system. Their opposition to the FAIRtax will be fierce and unrelenting. And don’t think for an instant that they won’t use half-truths, deception and downright lies in their desperate attempt to hang on to their power.
However, with the support of this President, we can finally eliminate the income tax and the IRS!!!
Of course, the best course of action is to not only repeal the income tax and abolish the IRS but to repeal the 16th Amendment as well so no future administration can ever shackle the American people with an income tax again.
We must come together and ensure that real tax reform, the FAIRtax, is not subverted by the Elites in D.C.
This will take the diligent efforts of all of us. We need your financial assistance, and we need your grass roots assistance.
If you have contacts that will allow us to get more information to President Trump about the FAIRtax please let us know.
Please email us at info@fairtax.org and we will give you some options on how you can best help us.
At a minimum, please call your Congressional representative and ask if he or she supports the FAIRtax. If so, thank him/her for their support and suggest they become a cosponsor of HR-25 if they’re not one already. If not, ask why not. If your representative claims to be unfamiliar with the FAIRtax, offer to have someone come to their office and explain it to them.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
THE SOLUTION—PASS THE FAIRTAX!
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
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 and help us pass the FAIRtax. It’s an investment in your and your family’s future.