TRUMP WANTS TO ABOLISH THE INCOME TAX
This is the title of a post on Peter St Onge’s substack. Peter St Onge is a Visiting Fellow in the Thomas A. Roe Institute for Economic Policy Studies and the Mark A. Kolokotrones Fellow in Economic Freedom at The Heritage Foundation. He holds a PhD in Economics from George Mason University and a bachelor’s degree in Economics and Political Science from McGill University.
Here is a summary of Dr. St Onge’s article:
- Trump announced that he wants to eliminate the income tax.
- So what happens if we end the income tax, laying off all 93,654 IRS agents so you can keep every dollar you earn?
- Will Washington have to fund itself with bake sales?
- Well, the income tax currently costs the American people $2.4 trillion a year.
- Trump proposes to replace it with tariffs.
- I’d guess near-term this will lead to a 20% increase in the economy, so about a $15,000 raise for the typical family.
- The projected $15,000 raise comes from one of my favorite papers in economics, by Christina and David Romer, that estimates that every dollar in taxes reduces GDP by 2 to 3 dollars.
- It keeps getting better. Because going by low-tax countries today -- or America before the income tax -- we might double our annual economic growth.
- Every company on earth will try to move to America because we'd be the mother of all tax havens.
- So a 5% annual GDP growth would be the new normal.
- And your kids would be three times richer than you — as it used to work in America.
- The IRS is gone.
CONCLUSION
While many of us may disagree with using tariffs to replace the income tax and Dr. St Onge is not addressing replacing payroll taxes, his post makes some very interesting points.
None of us are surprised that there is growing support for eliminating the income tax and the IRS.
All of us have had the reaction from friends, neighbors or even strangers when we explain the FAIRtax to them, they make a comment like—"I am for that!”
However, the Elites have demanded that their press minions and talking heads continually explain why, even though it is hated by most Americans, the income/payroll tax system and the IRS are “essential” and must be retained.
Now that more and more people are enthusiastically endorsing getting rid of the income tax, the genie is out of the bottle and people are not accepting the frantic mutterings of the Elite and their minions.
It is time for all Americans to support President Trump’s goal of eliminating the income tax.
Elon Musk has promised to cut $2 trillion from the federal budget. If he comes anywhere close to that goal, that makes the income tax all the easier to replace as that’s $2 trillion less that any alternate revenue source will have to extract from the American people.
As Dr. St Onge states, when the income/payroll tax system is gone, we will have every company in the world wanting to relocate to the U.S. This will create tens of millions of high-paying U.S. jobs and economic growth unlike anything we’ve ever seen before.
Our children and grandchildren will live in a country where, if they put forth the effort, they will have a much better standard of living than their parents and grandparents.
We now have an opportunity to put our country on a path toward unparalleled prosperity, and it’s an opportunity that may not come again in our lifetime. When the income tax is gone, people in all demographic groups and across the entire political spectrum will benefit greatly.
All of us 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. Please email us at info@fairtax.org and we will give you some options on how you can best help us.
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
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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.