The Chairman’s Report May 17th, 2024

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  • Source: FAIRtax
  • 05/24/2024

Why Georgians should support a federal FAIRtax


The following is an article that appeared in the May 6, 2024 issue of James Magazine written by John Linder and Chad Hagan, both AFFT Advisory Board Members.

Why Georgians should support a federal Fair Tax
by Former U.S. Rep. John Linder and Chadwick Hagan | May 6, 2024  

This year, Georgia Republicans will have the choice to vote for the Fair Tax on the party’s May 21st primary ballot. Supporting the Fair Tax is a decision all taxpayers should consider. Here’s what would happen federally if the Fair Tax, first introduced in Congress in 1999, became law:

1. The U.S. economy would explode. Trillions of dollars offshore will be repatriated because there will be no tax event in doing so. A study shows that capital spending in the first year after passing the Fair Tax will increase 70 percent. That increases productivity and it is estimated that the GDP will grow in the first year by 10 percent.

2. Manufacturing will return to the United States. Former Ways and Means Committee Chairman Bill Archer often quoted an informal study of many international businesses that are headquartered overseas. When asked what they would do in their long-term planning if we eliminated all taxes on capital and labor and taxed only personal consumption, 80 percent said they would build their next plant in the US. And 20 percent said they would relocate their headquarters to the US.

3. With a monthly prebate, the poor will not be taxed– and consumer prices will fall dramatically.
4. For the first time, we will tax expenditures instead of wages.

5. Businesses will make business decisions based on what is best for their shareholders, employees, and customers– not what is best for their tax burden.

6. We will finally tax the underground economy which, 15 years ago, was estimated at $3 trillion a year. Illegal immigrants will also pay their fair share.

7. We will save Americans nearly $1 trillion spent each year on IRS paperwork.

8. Churches will be able to conduct themselves as they see fit without IRS agents listening to their sermons. And the Johnson Amendment will no longer mean anything.

9. The Fair Tax would replace the federal individual income tax, corporate income tax, payroll taxes, the estate tax and the gift tax.

A 2009 poll concluded that, given a description of taxing income or consumption, the sales tax wins. In 2012, a study was done that concluded that if we were on the Fair Tax instead of the income tax during the financial crisis that year, we would have collected 10 percent more in revenue.

Consumption taxes work. Federally, we already have consumption tax on cigarettes, airline tickets and alcohol. As an example, in Monaco, all residents pay tax in the form of a 20 percent value-added tax on all goods and services. Monaco’s tax system is designed to generate revenue primarily from consumption rather than income, and Monaco has some of the highest concentrations of wealth in the entire world. They choose a just and fair consumption tax instead of weaponizing their tax code, and this is to their benefit.

You will be told that the Fair tax is hard on the poor, but we will send a cash advance every month – the prebate — to every family, based on the size of the family. It will offset the tax cost of spending on necessities. That is defined each year by the government as poverty level spending. The prebate, in many ways, is a form of a basic income– which should appease all the left-leaning voters who want affluent citizens to pay more tax.
By the way, the prebate only goes to legal residents!

The Fair Tax percentage rate is set as an “inclusive” tax, and the rate is 23 percent on the personal consumption of all new goods and services. Opponents will argue that it is a 30 percent tax when compared with a state sales tax which is on top of your spending or an exclusive tax. The Fair Tax is 30 percent on top of what you have to spend. The average income tax, of those who pay income tax, is 14.6 percent plus the payroll tax of 7.65 percent, or 22.25 percent.

In other words, the burden is about the same, but with the Fair Tax you keep more of your own money.
Gov. Brian Kemp signed HB 1437 into law on April 26, 2022. The new law replaced the personal income tax rate with a flat rate of 5.49 percent. This took effect Jan. 1, 2024. There will be gradual rate reductions until the tax rate reaches 4.99 percent. And it is estimated that Georgia taxpayers could save $1.1 billion by 2024 and $3 billion over the next ten years.

As for the Fair Tax, while we still have a fight ahead to make it a federal law, it is getting closer and closer to reality in Georgia. Make sure you vote yes to the Fair Tax on this year’s GOP primary ballot.


John and Chad very eloquently and clearly spell out the reasons why we need to eliminate the current income/payroll tax system and replace it with the FAIRtax.

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. 


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?

There is going to be a vote on the FAIRtax in the House of Representatives.  

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.
If Members think that the FAIRtax needs to be amended to address a problem, then they can propose the change.  Don’t let reject the entire bill because it has a perceived “flaw” that can be addressed.  

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. 
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