Political CHIPS - Conservative Heritage Institute for Principled Strength

Who Benefits from the silence surrounding the FairTax?

During this election season, you will hear politicians promise to 'fix the income tax' code. The media will report on various options such as the flat tax, or the extension of the Bush tax cuts. What you won't hear is a serious discussion of the FairTax Bill HR25/S13 which would end the IRS, stop all taxation of wealth creation, provide a transparent, easily understood tax code that applied to everyone equally, and doubles the economy in fifteen years.

So, why the silence? Power and Money. The income tax 'industry' (politicians, lobbyist, and academia) has much to lose should HR25 pass. For the favor of writing new loopholes, politicians are guaranteed campaign donations and votes. Lobbyist are paid $1Billion annually to work for clients seeking those loopholes. The worse the economy gets, the more money is paid to lobbyist by corporations desperate to protect profits. Academia (economist and tax experts) whose sole job is to study and learn tax codes depend upon the continuation of the income tax for both personal wealth and prestige.

To overcome the power structure described above, every American needs to have an understanding of the FairTax and what it could do for this country. If you are sick of the tax-code games, the ever-growing loss of jobs for Americans, the draining of investment monies into off-shore accounts, the confusion of a tax code that grows by 3% yearly - then join us in Columbia at Boone County Library Room A, July 26, 6-8 PM. Learn about the FairTax. No tax code is perfect. The FairTax comes close!

Bev Martin
Volunteer Co-Director Grassroots Development
Missouri FairTax
www;missourifairtax.com
573-310-4665

Tags: FairTax, flat, lobbyist, reform, tax

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Comment by Hank Van Gieson on July 25, 2012 at 8:22am: Bev,

As the Co-Director of the Missouri Fair Tax, I'm going to assume that you have more than a passing knowledge of the federal Fairtax draft legislation, HR25. Here is a little true-false quiz which you should have no trouble aceing. To keep it simple, just tell me how many of the statements are false. Good luck!

(1) HR25 abolishes the IRS and the IRC.

(2) There are 67,000 pages in the Internal Revenue Code and supporting Regulations.

(3) A sales tax inclusive rate of 23% would be revenue neutral.

(4) The after tax price of retail purchases will be about the same.

(5) The “prebate” is a tax refund paid in advance.

(6) Your dollars will purchase more under the Fairtax.

(7) You choose when and how much tax to pay.

(8) Everyone will be economically better off under the Fairtax.

(9) Interest bearing investment and debt instruments are not taxed.

(10) There is $10-$15 trillion of US owned assets parked in offshore accounts to avoid taxes.

(11) Buying “used” goods, (tax previously paid), eliminates the tax costs from the sales price.

(12) A national sales tax would have no impact on State and Local governments.

(13) The GDP will rise by around 10% in the first year of implementation.

(14) The Fairtax will save Social Security.

(15) The Fairtax is progressive.

(16) Evasion will be lower under the Fairtax because it takes two to cheat.

Comment by Hank Van Gieson on July 24, 2012 at 8:10pm: Bev,

I have been at this for almost eight years, and my library contains every study and book, both pro and con, about the Fairtax. Ken and I exchanged numerous emails on the subject until he was forced to resign from AFFT. His book sheds no new light on any of my criticisms.

Every informational meeting I have attended here in NC consisted of a bunch of marketing baloney presented by Fairtax Kool-Aide drinkers. Why don't you choose any one of my unfairness criticisms and explain to my why I am mistaken. I eagerly await your response, and can assure you if you prove I am mistaken, I will immediately remove that criticism from my list. Good luck!

If you want a completely unbiased evaluation of the Fairtax, I suggest you go to your library and pick up a copy of "Taxing Ourselves" by Joel Slemrod and Jon Bakija. Lots of good information there, and worth a read.

Please free to email me offline at vanlinda777@gmail.com if you would like to get into some details. I would love to explain just what my idea of tax reform is all about.

Cheers!

Comment by Beverly Ann Martin on July 24, 2012 at 5:21pm: Mr. Van Gieson, the gas to come to Columbia is cheap compared to lack of correct information. I would always welcome - as would any FairTax representative - you at any informational meeting. This is how concerns and statements such as yours are addressed, ideas exchanged and hopefully, correct information is learned.

I would suggest you read Ken Hoagland's book The FairTax Solution. Meanwhile, please do consider attending. Also, if you want to let me know where you live, perhaps we can arrange a FairTax informational meeting in a town close to you. Then we could easily discuss your concerns in a more personal format.

Comment by Hank Van Gieson on July 24, 2012 at 3:27pm: Bev,

The country benefits because the Fairtax scheme is a really bad plan! You ought to be glad I don't live anywhere near Colombia because if I was at your Fairtax meeting, I would ask the following questions for which you have no answers:

(1) How is it fair to double tax everyone's after tax savings/wealth?

(2) How is it fair to force retirees to resume paying for their government retirement benefits with their sales tax dollars?

(3) How is it fair to allow lower income workers to pay no net federal tax due to the prebate, yet still let them qualify for full government retirement benefits?

(4) How is it fair--or constitutional-- to propose that the federal government tax the consumption of State and Local governments under our constitutional republic form of government?

(5) How is it a good idea to create a $600 billion annual cash grant entitlement known as the prebate, coming at a time when entitlements are squeezing out discretionary spending in the federal budget?

(6) How is it fair to ask new home buyers to come up with not only a 20% down payment but also the 30% sales tax? Federal sales taxes have no collateral value!

(7) How is it fair to lay on a huge implicit service tax on investment instruments such as CD's and debt instruments such as credit cards and mortgages?

(8) How is it fair to propose to implement the Fairtax scheme "cold turkey" when no other nation has ever successfully funded their central government with such a broad based national sales tax?

The Fairtax isn't fair!