The Chairman’s Report November 21st, 2025

This week’s Chairman’s Report is written by Jade Walle.  A practicing CPA is on the American For Fair Taxation board of directors. 

The FAIRtax- Keeping your entire paycheck

A June 2025 nationwide survey commissioned by the National Tax Research Committee and conducted by Quantus Insights yielded some quite interesting results. 

It found that of the 1,200 registered voters who were polled, 59% of them found that keeping their entire paycheck was the most appealing feature of the FAIRtax. 

Frankly, I expected there to be other aspects of the FAIRtax that would resonate with people at a greater level. What about simplicity and freedom (i.e., no more income tax returns, ever!),  eliminating the IRS, or drastically reducing runaway illegal evasion?

Of course, the sentiment of American citizens can change over time, especially as they learn about the FAIRtax and how it works relative to our outdated and cumbersome income tax system.  However, for now, let’s examine this interesting polling result, because it is extremely important. 

I believe I know at least part of the reason why keeping your entire paycheck bubbled to the top of the list of perceived FAIRtax benefits.  For the past two years, my daughter has worked for a paycheck while home from college for the summer.  Although we had the conversation several years ago on how withholdings work and their purpose, the idea of the government taking a big chunk of her money before she even gets it never has sat well with her. 

If she just sees her direct deposit in her bank account, she’s fine.  However, when I walk through the components of her paystub with her, she begins to get frustrated with all the withholdings.  When I explain how she’ll likely never recover the nearly 10% of her gross pay that is confiscated in the name of FICA withholdings, she becomes even angrier. 

This psychological phenomenon is germane to the human condition, and great intellects far beyond my meager comprehension figured this out centuries ago.  Adam Smith, author of The Wealth of Nations (1776), surmised that anything of value that we can acquire in this life comes from our hard work.  This concept means that from our toil and sweat, if we work hard, save, remain diligent, frugal and avoid wasteful spending, we may be able to have or build something that we can call our own. 

The incredible thing about America is that this was a radical new concept in 1776 since for 99% of the world’s history and for 99% of the world’s population, owning property was something people never even dreamed of or thought was even possible.

I believe our founders realized this at least to a certain extent, which is why direct taxation was expressly forbidden in the original Constitution and why it took until 1913 for a permanent income tax to be implemented.

The psychological reality is that humans feel as if we’re being stolen from when the fruit of our labor, our income, is taken away from us.  It is like an amputation of sorts. For the vast majority of us, our income is the only way we have to achieve our dreams of owning property of any kind. 

Another psychological reality is that when we consume beyond our life’s basic necessities, taxation on spending beyond what we need to live is not perceived in the same light.  We inherently understand that we have a choice when spending beyond our basic needs, and therefore taxation on excessive consumption, as opposed to our income, is received immeasurably better.

My daughter agrees.  She works hard for what she considers not the best hourly rate, and she simply wants to get everything she’s worked for.  She wants choice, she explained to me.  She doesn’t mind paying a consumption tax on frivolous expenditures because she can elect how much and when she would pay any such tax.  Given her taste in lululemon fashion, I’m afraid she may still be adequately contributing to our nation’s treasury.

She sees withholding from her paycheck for what it is—the government forcibly taking a portion of her earnings away from her every two week pay period.  She had no control over how much they take and as I said earlier, that just doesn’t sit well with her.

The psychological feeling that we’re being stolen from is a driving force behind the rampant evasion of the income tax.  People feel justified in cheating on their income tax because it feels like they’re thwarting a thief.

There’s no such phenomenon with the FAIRtax.  That’s why studies have indicated that the FAIRtax would reduce illegal evasion by over 90%.  The reason is clear; the FAIRtax gives us a choice and the freedom to live our own life apart from the government confiscating a significant portion of the fruits of our labor. 

My daughter is right, and I now understand at least a little more why the majority of Americans in this recent poll believe keeping their entire paycheck is the FAIRtax’s best trait. 

CONCLUSION

Jade’s article addressed the fact that if you want a simple and fair method of collecting federal taxes that allows you to keep your whole paycheck, there is only one choice—the FAIRtax!

You ask why we don’t scrap the income/payroll tax system and replace it with the FAIRtax that allows us to keep our whole paycheck and we decide how much tax we pay by what we purchase?  The simple answer—the Elites and Members of Congress benefit from the present income/payroll tax system.

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 16^th 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.