The Chairman’s Report May 5, 2023

  • by:
  • Source: FAIRtax
  • 05/04/2023

Antagonistic Foes of the FAIRtax


 

STRENGTH LIES NOT IN DEFENSE BUT IN ATTACK.

This is a quote from Adolph Hitler which many of the more antagonistic foes of the FAIRtax have apparently adopted.

In their attacks on the FAIRtax one thing is missing—any defense of the present income/payroll tax system and the IRS.

The attacks ignore:
 
  • The fact that the income/payroll tax is evaded to the tune of over $1 trillion per year—and that’s just what the IRS admits to now.  Over 20% of the income tax that is owed is not collected.
  • The enormous increase in funding for the IRS will not come close to collecting more than 1% of what’s currently going uncollected over a ten year period.
  • The Peter G. Peterson Foundation released a study entitled WOULD INCREASED FUNDING FOR THE IRS NARROW THE TAX GAP?
Here are some findings from that study:
 
  • The increased IRS funding would yield $186 billion in additional revenues over ten years ($186 billion minus the $80 billion additional funding to the IRS for a net recovery to the U.S. Treasury of $106 billion over ten years).   
  • The IRS is expected to face difficulty hiring experienced revenue agents and this may further reduce the additional taxes collected.
  • The IRS, which is a vital part of the income/payroll tax system, is rated only fair or poor by 66% of the public.  That makes it the lowest rated federal agency in existence.  
  • The estimated total annual cost of income tax compliance for the Fortune 500 amounts to $1.055 billion. That total corresponds to a per company average of $2.11 million. About 69.5 percent of that cost results from federal income taxation.
  • Over the years, the tax code has been altered by changes to statutes, regulations and case law, adding up to over 70,000 pages of instructions on how to file taxes.
  • The time burden on individual taxpayers is enormous.  Considering 8 hours each for 169 million returns, Americans spent over 1.35 billion hours filing individual taxes.
  • Businesses in the U.S. filed over 10 million tax returns in 2012. Assuming the IRS’s estimated $420 filing cost holds true, over $4.4 billion was paid in compliance costs by businesses and non-profit organizations. Again, this does not include the actual tax liability.  That’s just what it costs to keep all the records and file all the forms.
  • For those 10 million returns, the IRS estimates that each one will take an average of 23 hours to compile and file.  That means that nearly 240 million hours  are spent filing tax returns.
  • All said, Americans spent over 3.24 billion hours, which is about 369,858 years, preparing and filing tax returns in 2012. Considering individual, business and employment taxes, this costs $37 billion annually in compliance cost for federal taxes alone.
  • The reason that the tax code changes so much and so often is that politicians need enormous amounts of money for their re-election campaigns.  They get a significant portion of this money by selling tax benefits to special interests.
  • Few Americans think the present income/payroll tax system is fair.
  • Corporate taxes and the associated compliance costs are just like any other cost of doing business.  They get passed on to consumers in the prices of the products and services we buy.  Between 10% and 20% of the price of everything we purchase is directly attributed to the costs of the income/payroll tax system being passed on to us.  That means that we’re all paying taxes that we never see and aren’t even aware of.
  • Because of withholding, an employee must earn between $1.20 to $1.40 to have $1.00 in their paycheck.  This means that it really takes between $1.20 and $1.40 to purchase a $1.00 item.  People are already paying a disguised sales tax.
  • The income/payroll tax system encourages imports and discourages U.S. exports effectively sending jobs overseas.
  • The payroll tax is the most regressive tax on workers—it applies equally to everyone regardless of their income or family size and is phased out at $147,000.
  • The politicians and bureaucrats can change the income/payroll tax at will.  That means that they, not us, are in control of how much tax we pay.  They often use this power to control our behavior by offering tax breaks for behaviors they favor, and tax penalties for behavior they want to discourage.  What’s favored and what’s discouraged can change from year to year.

The above is only a partial list.  There are many more problems with the income/payroll tax system.

The simple truth that none of the politicians want to acknowledge is that all of the issues listed above either go away entirely or are greatly improved upon by the FAIRtax.

CONCLUSION

Most of the attacks on the FAIRtax have no merit.  Many of the attackers try to deflect our attention to what they consider to be flaws in the FAIRtax while totally ignoring the myriad of serious problems that exist with the income/payroll tax system.

They are terrified that the FAIRtax will be enacted and Americans will realize how they have been manipulated and used by the D.C. denizens.

When someone attacks the FAIRtax, ask them about some of the above issues with the income/payroll tax system?  

Ask them to explain why a system with all of these problems should not be changed?

Isn’t it time to end this ludicrous tax collection system and the IRS?


When the FAIRtax is enacted, there will be no need to fear being audited by the IRS because there will be no more IRS.  

Under the FAIRtax, there will be no more tax returns.  We will pay our taxes when we make retail purchases of new goods and services.
 
There is going to be a vote on the FAIRtax in the House of Representatives.  McCarthy and the other elites didn’t want it, but it was forced on them.

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 changed, then they can propose the change.  Don’t let them reject the entire bill because it has a “flaw” that can be easily addressed.  

Please stand with us and demand that your representative support a much fairer, much simpler and much more efficient way to fund the government—the FAIRtax!

The FAIRtax doesn’t pick winners and losers.  Because it taxes spending, not earnings, the FAIRtax lets everyone save for their retirement tax free.  

The FAIRtax collects the revenue that the federal government needs to operate but does it in a way that has the least impact on our individual freedom and the least impact on our economic prosperity.  

There are no tax returns to file and no records to keep.  We pay our federal taxes when we make retail purchases of new goods and services, and there is no need for the IRS.  If you sell a used couch or used jet ski online, there is no FAIRtax due on that transaction.

The FAIRtax will allow us to TAKE BACK CONTROL.

The income/payroll tax system is broken and no longer working—we can’t repair it but we can replace it with the FAIRTAX!
 
Join us and TAKE BACK CONTROL OF OUR COUNTRY AND OUR LIVES—NOT WITH BULLETS BUT WITH THE ELIMINATION OF ONE OF THE BIGGEST THREATS TO OUR LIBERTY AND ECONOMIC PROSPERITY—THE INCOME/PAYROLL TAX.
 
We all should remember Edmund Burke’s warning that applies to our efforts to TAKE BACK CONTROL,
 
“Nobody made a greater mistake than he who did nothing because he could do only a little.”
 
We should also remember this quote from George Orwell's 1984, which, if we do nothing, may foretell your and your children's future:
 
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
 
WHAT CAN EACH OF US DO? 
 
We can write letters and make calls to our elected representatives and attend Zoom town hall meetings demanding that if they really want to allow Americans to “TAKE BACK CONTROL”, the first step is to eliminate the income/payroll tax system and enact the FAIRTAX!
 
TAKE BACK CONTROL!   Help us PASS THE FAIRTAX!
 
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.  It’s an investment in your and your family’s future. 

 

Help FAIRtax Become The Number One Issue in 2024

Enacting the FAIRtax must be a prominent topic in these times. We did it before, we can do it again, but we need your help!

Help out with a One-Time Contribution

Your gift of $25, $50, $100 – even $1,000 or more if you can possibly spare it – will help FAIRtax.org bring an end to the IRS and promote a FAIRtax. So, I urge you, please give as generously as you can.

Billing information (REQUIRED)

Payment information (REQUIRED)

To donate by check:
Americans for Fair Taxation
PO Box 4929
Clearwater, FL 33758

If you need to make changes to your existing Monthly Re-Occurring Donation with new card or billing address information, then Please call Adam Yomtov our New York State Co-Director. He is assisting with the administration of our donations, technology services, and website.

Please note: Inputting your new information at our website won't update your donation. The only way to update is by calling Adam Yomtov 917-689-3931 mobile.


Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!

Connect

Share