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: The ultimate “Green” bill (759 words)
Several aspects of the so called “green new deal” were included in the Inflation Reduction Act which was signed into law on August 16, 2022. The law authorized at least $369 billion in federal spending, subsidies, and tax incentives, with the purported aim of transitioning the U.S. away from fossil fuels.
This deficit-bloating bill is just another in a long line of legislative endeavors that seek to force the perceived flavor of the day, in this case green energy, down the average American’s throat.
One thing we know for sure is that picking winners and losers is best left to the free market, not to government bureaucrats who are distributing other people’s money. Did you ever notice how much bolder you are when you’re playing blackjack or roulette at a charity event where the chips aren’t real? It’s no big deal if you lose because there’s no real money coming out of your pocket. It’s the same in government because when they lose, it’s no skin off of their back.
A relatively recent case in point is the Solyndra debacle where $535 million simply vanished. Of course it was you, as an American taxpayer who funded this outlay, and don’t forget to add interest since the country had to borrow to pay off this $535 million gamble. The Solyndra example of course relates to the March 2009 loan and loan guarantee from the U.S. Department of Energy, where Solyndra would supposedly produce solar panels. The California-based company lasted about two years and by August 2011, had filed for bankruptcy. As far as I’m aware, no government official lost their job or received a pay cut after this $535 million was written off, never to be seen again.
There are many great ideas, good causes, and business ideas that will come and go over time. The question we have to answer in an intellectually honest way is whether we want our government and bureaucrats choosing between them, or would it be better if you and I did it? Until the last few decades, we as individuals and businesses had the freedom to pursue the American dream without artificial competition from our own government where government does not experience the cost constraints, payroll, and bottom line pressure that you and I are beholden to. So, what is the alternative?
The FAIRtax comes to the rescue once again. The FAIRtax is an elegant replacement for our antiquated, inefficient, wasteful, and convoluted income tax system. The FAIRtax does not advocate spending on one initiative over another. It provides no favorites and picks no winners and losers. In fact, the only thing the FAIRtax can be accused of is not taxing investments, including secondary and post-secondary education. What does this mean exactly? Under the FAIRtax, there are two primary exceptions, one of them being investments held for appreciation and the other, which will come as no surprise, is charitable contributions. You won’t pay the FAIRtax when you give to your church or charity and you won’t pay the FAIRtax for college or high school tuition costs.
There’s one other area that could be perceived as an exception. Under the FAIRtax, we are taxed once and only once on new goods and services. This means that if we purchase pre-owned items such as homes, condominiums, automobiles, and gently-used clothing, we will legally avoid the FAIRtax.
This is the crescendo! The FAIRtax does not force a philosophy or spending priority of the season upon you. Rather, the FAIRtax elegantly encourages us to re-use goods if at all possible. Think about all the gently used goods businesses that entrepreneurs will invest in when the FAIRtax is the law of the land.
Of course, homes in the U.S. are nearly 90% pre-owned already, and many purchase used cars, which make two of our larger lifetime expenditures ripe for legal tax avoidance. However, other businesses for gently used clothing, tools, furniture, books, electronics, machinery of all kinds, etc. will have a Bonafide reason to be created with these items refurbished and re-used.
Talk about a green new deal! The FAIRtax will end up being one of if not the greenest piece of U.S. legislation in our nation’s history. Did the FAIRtax need tax subsidies? Did the FAIRtax need one-off tax incentives, rebate programs, or refundable tax credits? Did the FAIRtax need to make loans and loan guarantees to California companies that will only live for two years leaving American taxpayers with a bill for $535 million? No, the FAIRtax produces results naturally, and elegantly delivers once again, even in ways and in areas that we might otherwise never think about. Who wants to volunteer to inform AOC?
CONCLUSION
Few of us know people that are not interested in having safe water and a good environment. We may disagree among ourselves about the cause of the threat to the environment but none of us can read Jade’s analysis and conclude anything but that the FAIRtax is good for the environment.
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.