NO MONEY FOR RETIREMENT—ENACT THE FAIRTAX
tehcheesiongNO MONEY FOR RETIREMENT—ENACT THE FAIRTAX
On May 8, 2023, a very disturbing article appeared in The Hill announcing that more than 40% of baby boomers are nearing retirement but have no retirement savings. Some of the points made in the article are:
- Many Americans work for smaller companies that don’t offer retirement plans. Many others are self-employed, or live paycheck to paycheck.
- Fewer than half of working-age Americans have any retirement savings, according to Census data for 2020.
- Savings rates rise with age, but only to a point. In the 55-to-64-year-old boomer age group, 58 percent of Americans own retirement accounts.
- A 65 year-old retiree can now expect to live 20 more years.
- The average monthly Social Security check is around $1,800.
- The average household run by an over-65 American spends more than $4,000 a month.
- Workers should aim to save 10 times their annual salary by age 67: $375,000 for an individual, and $708,000 for a household.
- If the goal is to retire in relative comfort, you will need closer to $1.1 million, according to a survey by Schroders, the asset management company.
- To make ends meet, more Americans are working into their 70s. The share of people over 75 in the labor force is projected to reach 11 percent in 2026, up from 5 percent in 1996.
- But even with those added wage-earning years, census data shows that the poverty rate among seniors reached 10.3 percent in 2021. That’s the highest percentage in two decades.
The present income tax system punishes two things that should be rewarded—work and savings. The more you work the more income tax you pay.
If you want to save, you first have to pay income tax on your earnings. You can then invest some of what’s left over after withholding, but then you’ll have to pay federal income tax on the return generated by your investment.
For example, if a family wants to put $5,000 per year into an investment account, they will need to earn at least $6,250 to net $5,000 to invest. Assuming a 6% investment return and a 20% federal tax rate, $5,000 per year for 20 years will yield $172,202 in savings.
When the income/payroll tax is repealed and the FAIRtax is enacted, the family will be able to invest the entire $6,250 each year. Assuming the same 6% investment return but with no federal income tax bite, the family will have $246,912 in savings after 20 years. That means that this family can save over $74,000 more under the FAIRtax than under the income tax.
Unfortunately, many people in D.C. will see the frightening numbers of people without retirement savings not as a crisis but as a good thing. That’s because the DC elites want as many people as possible to be dependent on government payments for their survival. People who derive their sustenance from the government are much easier to control than those who can fend for themselves.
Of course, the elites generally have well-funded government pensions and many are making substantial sums by obtaining government subsidies for special interests who pay them very well.
They believe that people’s inability to save for their own retirement is not the result of DC stacking the system against them. Instead, they see that as further evidence that most Americans need the D.C. group to “take care of them.”
This arrogance that ordinary people can’t survive without them fuels their feelings of intellectual superiority. It also causes them to distrust and oppose anything that will enable people to take better care of themselves.
This is one of the main reasons that many in D.C. oppose the FAIRtax. It would transfer a considerable amount of power from the government to the people, while at the same time, giving the people a better chance of succeeding on their own.
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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