The Chairman’s Report July 25th, 2025

This week’s Chairman’s Report is written by Jade Walle.  A practicing CPA has been on the American For Fair Taxation board of directors. 

FAIRtax and border security

Legislation known as the Big Beautiful Bill currently includes $175 billion in spending for border security, inclusive of $50 billion for a border wall, $45 billion for detention centers, and $14 billion for deportations, among other costs. 

The 10th Amendment to the Constitution outlines the concept best described as federalism, where the federal government and the states mutually share power. The 10th Amendment prescribes that the federal government has only those powers delegated to it by the Constitution, and that all other powers not forbidden to the states by the Constitution are reserved to each state, or to the people.  Based on this founding principle, many feel that the role of the federal government is fairly limited, and one of those few roles is national security for our U.S. citizens, which inherently includes a focus on securing our national borders. 

Therefore, the Big Beautiful Bill’s focus on border security is certainly justified and reasonable and brings up the question of how the FAIRtax might affect border security and illegal immigration upon enactment?

One of the most elegantly inherent aspects of the FAIRtax is how it encourages legal immigration and discourages illegal immigration.  Both of these ends obviously contribute to a more secure border and strong overall national security.  So, how exactly does the FAIRtax accomplish this amazing feat?

The FAIRtax prebate which is based on family size, makes purchases of a family’s life necessities free of tax.  However, the FAIRtax prebate is reserved for legal U.S. residents with Social Security numbers, meaning people who have illegally crossed into the U.S. will not receive the prebate, although they’ll spend and consume in the course of their daily lives.  This means that residents illegally present in the U.S. would pay the full FAIRtax rate while the vast majority of Americans, thanks to the prebate, would have an effective FAIRtax rate at least 50% lower than those here illegally. 

This is an incredible difference (a family of four would receive approximately $9,000 a year with the prebate) and an enormous incentive to reside here legally.  Currently, people illegally in the U.S. are not filling out their individual income tax returns and likely pay zero federal income tax.  Under the FAIRtax, these individuals would finally pay their full U.S. federal tax burden and would also not receive the prebate, compounding the incentive to follow existing immigration laws and regulations.

Illegal border crossings and attempted clandestine crossings will naturally decline under the FAIRtax, as the incentive to enter into the U.S. illegally is dramatically reduced. 

Further, with a booming economy fueled by FAIRtax enactment, the new tax haven of the world will require more legal immigrants than ever before, which will likely result in positive immigration reform whereby those with superior qualifications and skills would be able to immigrate to the U.S. more seamlessly to help with burgeoning U.S. business, technological, and manufacturing growth. 

This also creates an indirect incentive for others who wish to experience the American dream to prepare themselves with requisite work or educational experiences.  As if this were not enough, under the FAIRtax, post-secondary education costs are estimated to decrease by at least 40% relative to the current income tax environment, where college expenses are paid with after-tax dollars.  As U.S. university costs significantly decrease with the FAIRtax, an even greater incentive exists for people outside the U.S. who are pursuing advancement and education, to seek out their advanced degrees at U.S. institutions. 

We know from history that a large proportion of these people will pursue permanent U.S. residency upon graduation, allowing highly qualified and educated people to contribute to and help advance our U.S. economy, create innovate products (think Elon Musk), and allow the U.S. to remain the world’s primary superpower. 
The FAIRtax delivers again, elegantly encouraging legal immigration and simultaneously discouraging illegal immigration, which leads to a much stronger national security! 


CONCLUSION

Jade has done an excellent job of explaining how the FAIRtax will eliminate many incentives for people to be illegally in the U.S.  Economic sanctions created by the FAIRtax will greatly reduce the numbers of illegal migrants.

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 16^th 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.