THE UNITED STATES LOST AN ESTIMATED $2.2 TRILLION IN REVENUES THROUGH TAX EXPENDITURES, COMMONLY KNOWN AS TAX BREAKS.
This is an article from the Peter G. Peterson Foundation that points out an aspect of the income/payroll tax system that has helped allow it to continue to exist.
The article makes these points:
- The United States lost an estimated $2.2 trillion in revenues through tax expenditures, commonly known as tax breaks, in 2025.
- According to the Joint Committee on Taxation (JCT), tax expenditures “include any reductions in income tax liabilities that result from special tax provisions or regulations that provide tax benefits to particular taxpayers.”
- In 2025, the federal government collected $3.1 trillion in individual and corporate taxes. At the same time, the tax code generated $2.2 trillion in tax breaks--more than was spent on Social Security, Medicare, defense, or any other program.
- Tax breaks exceeded the size of the $1.8 trillion deficit in 2025 by $444 billion.
- JCT estimated that in 2025, 84 percent of the tax benefits from deductions for state and local taxes, charitable contributions, and mortgage interest went to taxpayers with incomes over $200,000.
- The cost of tax expenditures increased by $296 billion in 2025 over the last year, and JCT estimated that the cost will continue to grow over the next four years. In fact, the cost of tax expenditures grew 15 percent. That is more than the growth in:
- Social Security (8 percent),
- Medicare (14 percent),
- Medicaid and other health (7 percent),
- National defense (5 percent), and
- Net interest (10 percent).
CONCLUSION
Each of the “tax expenditures—deductions” is designed to placate certain Americans and keep them from joining the millions of other Americans that want to eliminate the income/payroll tax system.
One of the reasons that the corrupt and terrible income/payroll tax system has been able to survive for as many years as it has is because selected groups have been paid off with these deductions and convinced that somehow they were paying less than others.
THE FAIRTAX IS THE ANSWER.
The FAIRtax is a national retail sales tax on new retail goods and retail services which provides a family credit so that all purchases up to the poverty level for each family are not taxed. There is no withholding from your paycheck, and YOU NEVER HAVE TO FILE A TAX RETURN TELLING THE GOVERNMENT HOW MUCH YOU EARNED AND HOW MUCH YOU SPENT, AND YOU’LL NEVER BE HARASSED BY THE IRS EVER AGAIN.
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.