This week’s Chairman’s Report is written by Jade Walle. Vice president of Ur-Energy Inc., a CPA and a member of the Americans For Fair Taxation board of directors.
Let’s pit our fellow Americans against each other (Part 2)
In last week’s Chairman’s Report, we learned that corporate income taxes make up less than 10% of our U.S. Treasury income tax receipts.
We also learned that the nation risks being torn apart by envy and perpetual class warfare caused by our current income tax system and how many politicians are more than eager to exploit the natural human tendency to covet what others have. President Lincoln summed it up best when he said, “A house divided against itself cannot stand.”
What is the solution? What would enacting the FAIRtax do relative to this malignant growth that has plagued our nation since 1913? Let’s recall what the FAIRtax would bring about.
Specifically, there would be no more income taxes, period. No income tax for individuals, and no income tax for corporations. The income/payroll tax system would be replaced by a national sales tax levied on the retail purchase of new goods and services. It would be simple and visible to all on the retail receipts of the products and service you purchase.
If we close our eyes and imagine the FAIRtax is the law of the land, we’d see that all businesses, large and small, would be free of their income tax and matching payroll tax burdens. These taxes have long been a disincentive to employment. Companies’ cost structures would be free of a significant cost component once this employment disincentive is eliminated.
Individuals would keep their entire paychecks. Thanks to the prebate, all legal households will be able to purchase their necessities totally tax free. Furthermore, as we consume, we’ll be purchasing goods at significantly reduced costs since the FAIRtax will significantly reduce to cost of doing business.
So, what does all this do to eliminate envy and division among us?
If our U.S. tax platform is simple and free of income and payroll taxes of any kind, how could people and politicians demonize those nefarious and evil corporations any longer? We know they’d find something to criticize, but people could no longer claim that rich corporate fat cats are not paying their fair share of the tax burden. Self-serving politicians could no longer castigate our nation’s businesses for escaping justice simply because they use the tax law that those very politicians enacted. There is simply no more income tax to purport that companies are not paying enough of! The FAIRtax elegantly brings back civility to our public discourse.
On an individual level, I always think back to Warren Buffet’s commentary that he paid a lower income tax rate than his secretary, which stoked class warfare.
We all know the arguments. The evil rich need to pay their fair share. Never mind that the Tax Foundation highlights that the top 1% of U.S. earners pay nearly half of all U.S. income taxes. Talk about a fair share.
The FAIRtax completely eliminates this “fair share” argument, because there are no more business taxes and new goods and services are taxed once and only once at the retail level. Retail businesses simply collect the FAIRtax and remit it, like they currently do for state sales taxes. Now, the two and four-year election cycle refrains of, “The rich need to pay their fair share!” and “You just tax and spend,” are rendered inane.
In fact, taxes become so simple under the FAIRtax with a single national sales tax rate, that the only arguments would be over whether to raise the rate, or exclude certain goods from the FAIRtax. Now, a politician must justify and persuade people that the FAIRtax rate needs to be higher for some specific spending proposal.
The FAIRtax not only elegantly eliminates tax-related class warfare, but provides sunlight and transparency on future spending initiatives. The FAIRtax does in fact save the day!
CONCLUSION
As Jade makes clear, the FAIRtax Act (H.R. 25) is more than just a proposal for a retail sales tax; it is a fundamental restructuring of the federal fiscal structure. Unlike other excise taxes which normally are applied to specific products and in different percentage amounts, the FAIRtax applies a 23% rate to all new retail products and retail services.
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.
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.