Mr. President, It’s Time To End The IRS “License to Hunt”
This is the title of a recent article in Forbes Magazine written by Steve Forbes. Here are some of the points made in the article:
- Under the Biden administration, the Internal Revenue Service got powers that are now being used to shake down the very backbone of the American economy: small and family-owned businesses.
- Even with President Trump back in the White House, these overreaching and blatantly politicized enforcement regimes remain in operation.
- At the center of this quiet assault is the IRS Pass-Through Unit.
- Ostensibly formed to crack down on tax evasion by wealthy individuals, it operates under vague authority, without congressional approval, and is actively targeting law-abiding businesses across the country.
- Businesses now live in fear of retroactive rulings, arbitrary penalties and endless audits.
- Apparently, this unit is being led by the same person who was deeply involved in the Obama-era Tea Party targeting scandal—forced out, only to be brought back in under Biden’s watch, behind closed doors.
- The IRS' new Revenue Ruling 2024-14 weaponizes the “economic substance doctrine,” a vague and largely discretionary standard, to retroactively question legitimate business transactions.
- What does that mean in practice? It means the IRS now has the power to label routine, previously lawful decisions as suspicious—then penalize businesses accordingly.
- Compliance is no longer enough. Businesses can be found “non-compliant” simply because an IRS agent interprets their intentions differently.
- In short, tax certainty—once a bedrock principle of our system—is gone.
CONCLUSION
Steve Forbes has been pointing out problems with the income tax and demanding significant changes for over 30 years. His solution was and still is the flat income tax. His plan would be that all individuals and businesses will pay a flat percentage.
While this will certainly simplify the income tax code, there is no likelihood that a flat income tax would stay flat. Every past attempt to “simplify the income tax” has failed. Before the ink is dry on the legislation, an army of lobbyists is hard at work seeking to restore thousands of exemptions, exclusions, deductions and credits. The end result has always been the same. The income tax code becomes even more complicated that it was before.
Ironically, the biggest problem of the income tax for people who don’t work for wages and receive a W-2 is how to determine income. It is very simple to multiply the amount of income by the appropriate tax rate to calculate the income tax owing.
But even under a Steve Forbes type flat income tax, a business would still need to determine the net income on which to pay the income tax.
If the Trump administration eliminates the IRS Pass-Through Unit, as Mr. Forbes suggests, what will stop a future administration from putting it back in place or even making it worse?
Of course, the IRS Pass-Through Unit is just one example of the absurdities and contradictions contained in the Internal Revenue Code, and why the income tax is so despised by most of the American people.
When you read the information above, you are likely confused and angry that Congress has allowed this abominable income tax system not only to continue, but to become more burdensome every year.
Their inaction might be more understandable if there was no alternative that would eliminate the wasted hours and expenses of the present income tax code. However, the plain truth is that there is an alternative that eliminates the burden on individual citizens and reduces the burdens on businesses by over 90%.
This alternative is the FAIRtax—a simple and progressive national retail sales tax on the retail purchases of new goods and services.
In addition to removing the compliance burden on Americans, the FAIRtax also:
- Taxes imports and provides tax credits to U.S. exporters like all of our trading partners.
- Eliminates the need for most tariffs.
- Brings jobs back to the U.S.
- Eliminates federal taxes up to the poverty level.
- Requires no tax returns for individuals.
- Clearly shows the federal taxes hidden in the prices of the goods we purchase.
- Creates greater economic growth.
- Brings in capital that allows productivity increases and higher wages.
- Eliminate lobbyists and politicians selling tax benefits that harm the rest of us.
- ELIMINATES THE IRS!
We need to move now and put a stake in the heart of the income tax and the IRS so that they cannot be easily resurrected by a subsequent administration.
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.