Fair Tax Transition

Overhauling the current tax system and converting it to a Fair Tax/Flat Tax/NRST system needs to be done. Sooner than later. Yesterday, or the day before, works for me.

You'll hear pundits, politicians, accountants and the corner hot dog vendor tell you it can't be done because the current system is so solidly entrenched in the fabric of our lives, converting to something else would just cause chaos and take too long.

Thats what they said about the automobile.

I have an idea to make the transtion as simple and effortless as possible and the citizens get the benefits of the transtion immediately.

The first thing that needs to happen is the elimination of the payroll deduction for Federal taxes. BAM!!! American workers get to keep 15 to 18% of their earned income. No muss no fuss. Don't touch SS, Medicare or state taxes. They have to stay, but there should be an option for self-directed SS accounts for new workers.

Second, the IRS needs to be downsized and employees re-trained as field representatives for the new tax collection system. They will go out and assist retail outlets in upgrading the software to start collecting an increased percentage at the Point of Sale.

Once that is done, the government starts getting General Fund revenue. Note, the NRST has exemptions for certain scenarios. Bulders wouldn't pay a sales tax on building materials, the end user would pay the tax when they purchased the finished product, whether it's a house or a chair. Second sales of used autos and trucks is exempt because theoretically, the original purchaser would have paid the tax. I don't like either of those. 2nd sales of used cars/trucks shouldn't be taxed. Resale of items purchased wouldn't be taxed. The tax would only be paid at the point of purchase for the new product by the original purchaser.If we're going to try to convert to a simple plan, we need to start out by making it simple. Less paperwork is more simple.

If the system is a flat tax on earned income, then we need to decide how to pay it and how frequently. We should have options for paying taxes. Monthly, quarterly, bi-yearly, yearly, pre-pay.
Credit card or written check. No debit cards, no ACH transfers, although that could be done.

The ideal system would only tax profits on income. Wages are not profit. It's a result of your efforts as a worker. Earning a living requires an investement on the part of the earner. It requires that you make daily investments to generate that income. You have to live somewhere. You have to get to work. You have to feed yourself and your family. You need clothes, electricity, water, sewage. All of those costs are money you spend to make it possible for you to make a wage. The wages generated from those expenses is gross profit. The amount you have left could be considered profit, but we call it disposable income. Fun money. Thats the part that should be taxed.

I am a staunch supporter of the Flat Tax. A 10% across the board tax on every cent you earn, no matter where it comes from, with no deductions, no exemptions, no paperwork, no refunds of overpaid taxes.. Everyone pays 10% of their earnings to the government and if the government pays you, 10% of that gets held back unless it is a Social Security check, a veterans benefit or retirement account.. Those would be untaxed. If you recieve SS or VB, you can work if you're able. If you choose to work, it will not affect your benefits, but you'll pay 10% of your earnings just like everybody else. You will also be expected to pay 10% on the return from investments NOT tied to a retirement account.

It's good enough for God. It should be good enough for the government.

This Day In History

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

When our country, 98 years ago today, ratified the 16th amendment to the U.S. Constitution, we ceded more power to our government than at any other time in our history.

And we have a plan to get our power back. The Fair Tax will be the single greatest transfer of power from the government to the People since the Declaration of Independence.

The worst part is no one is really sure the 16th Amendment was properly ratified. It was most assuredly the beginning of the end of free enterprise and the right of the people to be secure in their possesions.

So Where Ya Wanna Start?

I say we get the tax cuts resolved first. You saw what the stock market did just because someone mentioned extending the 2001-2003 tax cuts. My 401K jumped considerably yesterday and I am a hap hap happy boy. Feels good to make money, kiddies. Trust me. It can't buy love, and it might not be the key to happiness but I garontee its part of the combination.

Second, healthcare legislation: Be gone!!!!! Scrap it and give every health insurance provider full access to the whole market. You want premiums low and service high? Open the competition.
"Let the games begin!!!!!!" Loose the dogs of customer service and profit margins. Who cares how much money a company makes if the service it provides is the best at the lowest price? I'll tell you who cares, shareholders. Especially if the stock is part of your retirement plan. Holy Shiite people. This is Econ-101. And let the people decide what is quality, not the government.

Third: We start working on a tax system that is fair and equitable. We live in the best country in the known universe. We have to pay for the upkeep. But if everyone paid exactly the same percentage, we would have it covered.

I don't know about anyone else, but I feel pretty stellar today. I can actually see the brakeman's hand on the switch, slowing the Bambi Train to a Socialist Utopia.

Flat Tax or Fair Tax - We Need One or the Other

10% Flat Tax across the board. No deductions, no exemptions. Paid quarterly. Everyone pays.
If you want to access the "real cash" flowing daily in America, a 10% National Retail Sales Tax will get anyone who buys stuff. A VAT will only add to the base cost of goods, and will be passed on to the consumer.

Repeal the Sixteenth Amendment
by Paul Moreno
01/14/2010

One hundred years ago, Congress sent a constitutional amendment to the states to permit the federal government to tax incomes. The pressure for an income tax had been building ever since the Supreme Court declared the 1894 income tax unconstitutional -- as a “direct” tax, it had to be apportioned among the states according to population. Such apportionment would defeat the principal aim of the tax’s southern and western Populist proponents, which was to shift the tax burden onto the high-income states of the Northeast.

In 1909, these Populists wanted a corporate income tax as well as a personal income tax. The story goes that the conservative Republicans, led by Sen. Nelson W. Aldrich of Rhode Island, agreed to enact a corporation tax but let a personal income tax depend on the ratification of a constitutional amendment -- one that they were confident the states would not ratify. Aldrich openly stated that he would vote for the corporation tax in order to defeat the income tax.

To the Republicans’ surprise, the states quickly ratified the Sixteenth Amendment, and we have both corporate and personal income taxes.

The income tax, as its opponents a century ago predicted, has become a monstrosity. It has spawned a system of special privileges and penalties as Congress uses it to promote and discourage all sorts of policies that have nothing to do with raising revenue, nothing to do with the Constitution’s grant of power to “collect taxes… to pay the debts and provide for the common defense and general welfare of the United States.”

The income tax is also the source of our deranged health-insurance system. During World War II, the government prohibited employers from competing for workers via higher wages. Instead, employers began to offer health insurance as a tax-deductible fringe benefit.

The ridiculously arcane tax code has spawned entire industries, costing billions of dollars, in which individuals and businesses lobby for exemptions, try to exploit loopholes, or simply struggle to comply with the code. The system is so ridiculously complex that the Secretary of the Treasury (the chief tax-collector) and the chairman of the House Ways and Means Committee (the chief author of the tax law) can claim that they failed to pay their taxes because they didn’t understand the tax code.

Our dysfunctional tax system has led many to advocate a radically simplified “flat tax.” Others call for the abolition of the income tax and adoption of a national sales or “value-added” tax (VAT). Conservatives dislike the VAT idea because, as an indirect and hidden tax, it makes it much easier for the government to raise taxes. Liberals dislike the VAT because it is regressive, taxing everyone’s consumption equally, rather than falling more heavily on the rich.

The problem is that, like Nelson Aldrich, we will end up with both an income tax and a VAT. Indeed, that could happen even if we did repeal the Sixteenth Amendment. A good argument can be made that the amendment was unnecessary, because Congress had always had the power to tax incomes, and it was the Supreme Court that got it wrong when it struck down the 1894 income tax. The federal government had collected an income tax during the Civil War, which the Supreme Court upheld (at least with regard to professional earnings) in 1881.

So, to be really certain, we need to amend the Constitution in such a way as to prohibit income taxation.

Just A Reminder: Its The IRS, Stupid

Health care reform means more power for the IRS
By: Byron York

Chief Political Correspondent September 2, 2009

In short, health care reform, as currently envisioned by Democratic leaders, would be built on the foundation of an expanded and more intrusive IRS.

Under the various proposals now on the table, the IRS would become the main agency for determining who has an "acceptable" health insurance plan; for finding and punishing those who don't have such a plan; for subsidizing individual health insurance costs through the issuance of a tax credits; and for enforcing the rules on those who attempt to opt out, abuse, or game the system.

A substantial portion of H.R. 3200, the House health care bill, is devoted to amending the Internal Revenue Code of 1986 in order to give the IRS the authority to perform these new duties.

The Democrats' plan would require all Americans to have "acceptable" insurance coverage (the legislation includes long and complex definitions of "acceptable") and would designate the IRS as the agency charged with enforcing that requirement.

On your yearly 1040 tax return, you would be required to attest that you have "acceptable" coverage. Of course, you might be lying, or simply confused about whether or not you are covered, so the IRS would need a way to check your claim for accuracy. Under current plans, insurers would be required to submit to the IRS something like the 1099 form in which taxpayers report outside income. The IRS would then check the information it receives from the insurers against what you have submitted on your tax form.

Tax Day Is Only 10 Days Away

This is an idea whose time has come.

The New FairTax Ad

Here's a sneak peek at our Investor's Business Daily (IBD) ad

Richmond Tea Party April 15th

TAX

PROFITS & CONSUMPTION

NOT

WAGES & PRODUCTION

A Simple Plan

for simple people. This will work.
1. End the taxation of production and wages.
2. Every piece of legislation must have a citizen impact study performed prior to passage to determine if it is of benefit to the average citizen.

That's my plan.

Jim Quin over at the Warroom has some which are good as well:

This workable & effective Economic Stimulus Plan comes courtesy of Jim Quinn... http://www.warroom.com/

1. Reinstitute the Bush Tax cuts for future certainty, real wealth production and economic growth
2. Drop Corporate Income Tax from 30 to 10% (There is no tax that each of us in some way does not pay.)
3. Eliminate mark-to-market rules for banks http://en.wikipedia.org/wiki/Mark-to-market
4. Repeal the Sarbanes-Oxley Act http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act
5. Drill Baby Drill for Oil - Untold wealth and our economic salvation lies just beneath our feet.
6. Institute the “Fair Tax” http://en.wikipedia.org/wiki/FairTax Capital will instantly begin to flow our way.

TAX PROFITS AND CONSUMPTION

NOT WAGES AND PRODUCTION

ESPECIALLY NOT WAGES

FAIR TAX BLOGBURST 01-17-07

The following is a press release from Representative John Linder, and published at the FairTax.org web site. With each new Congress, the FairTax bill must be reintroduced. Please make sure you let your Senators and Representative know of your support for the FairTax.

Washington, D.C. - Today, Representative John Linder (R-GA) introduced H.R. 25, the “The FairTax Act of 2007.” This bill was first introduced by Congressman Linder in 1999, and has become increasingly popular since that time. At the close of the 109th Congress the FairTax Act was the most popular tax reform bill in Congress with 59 supporters in the House, which far exceeded any other piece of tax reform legislation.

“The progress we have made since first introducing the FairTax is simply amazing. The grassroots growth has been phenomenal and it is evident that Americans get it. They are way ahead of the politicians on this one. In the 109th Congress, we had 59 supporters on the bill, and we did not solicit a single one. They came to my office because their constituents demanded it. That is happening all over the country.”

This bi-partisan legislation, with Congressman Dan Boren (D-OK) as an original co-sponsor, will repeal all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes and replace them with a revenue-neutral personal consumption tax. The revenue neutral number advocated in the bill is 23%, which is very near to the average 22% embedded cost of the current system in every good purchased today. This embedded cost will be driven out of the price of goods because the FairTax will also eliminate all business to business taxes.

“Americans realize that we can achieve a voluntary tax system by allowing everyone to pay taxes when they choose and how much they choose by how they choose to spend. We are giving Americans an option of paying 23 cents of every dollar they spend with the freedom of anonymity, or paying 33 cents of every dollar they earn and the fear that the IRS will come knocking because of some unintentional mistake. They get it, and they are coming in droves to support change.”

The FairTax achieves voluntary taxation by providing a prebate to all Americans that offsets the tax consequences of spending up to the poverty level. This aspect of the bill makes it the most progressive tax proposal today. In essence, if a family of four does not exceed the poverty level spending which is established by the U.S. Department of Health and Human Services, then, with the prebate, they will pay no federal taxes for that year.

“Big ideas take a long time to achieve in Washington D.C., and I am excited with the progress we have made in such a short period of time. There are certain economic forces that are pushing us toward the FairTax. If we are going to continue to compete in a global economy, then we will have to move towards a system that removes the foot of the IRS from the throat of our economy.”

Congressman Linder added that he has a new grassroots oriented website, linderfairtax.house.gov that contains answers to any FairTax related questions.

Of course, you may also find the latest and most definitive information about the FairTax right here at FairTax.org.

The FairTax Blogburst is jointly produced by Terry of The Right Track Blog and Jonathan of Publius Rendezvous. If you would like to host the weekly postings on your blog, please e-mail Terry. You will be added to our mailing list and blogroll.

FAIR TAX BLOGBURST 01-10-07

by Debbie of Right Truth

John Edwards is running for president of the United States on his same old theme, 'two Americas'. He hopes to get votes by pitting the 'haves' against the 'have nots'. He even chose New Orleans to make his announcement, with the unspoken message that the government failed the poor people and he has stepped in to be their savior.

Edwards is promising universal health care, pulling out of Iraq ,taxing oil company profits and eliminating President Bush's tax cuts to pay for his priorities. Edwards is not alone in his thinking about the evil rich (of which he happens to BE ONE). Yesterday Thomas Sowell had a wonderful article that relates to this, titled 'A Dangerous Obsession'.

Mr. Sowell picked up on the media, the left, and academia's continuous obsession with “gaps” and “disparities” in income. 'As one talk-show host put it, “It makes no sense” that a corporate executive makes over $50 million a year.' Sowell says, "Ninety-nine percent of all the things that happen in this world “make no sense” to any given individual."

If you cannot understand something as simple as making a lead pencil, why should you be surprised that you don’t understand why someone is making a lot more money than somebody else?

Moreover, if this obsession with income disparities is to be something more than mere hand-wringing or gnashing of teeth, obviously the point is that somebody ought to “do something” to change what you don’t understand.

That's what the left, liberals, and Edwards wants to do. They want to correct what they perceive as something wrong, ...some people having more money than others. And how would one go about correcting such an atrocity? That's easy. Take away the excess from one, and give it to another. Or as Mr. Sowell puts it, "Usually that means that the government — politicians — should impose policies based on your ignorance of what is going on."

Of course, such political control of incomes is usually advocated only to deal with “the rich.” But, when income taxes were imposed in the early 20th century, they applied only to “the rich” and they took a very small percentage of their income.

Once the floodgates are opened to this kind of political power, however, we have seen with the income taxes that they not only spread far beyond “the rich,” they took a serious share of even middle class incomes.

Moreover, the income tax has spawned an intrusive bureaucracy, creating so much complexity and red tape that millions of ordinary citizens have to go get some accountant to fill out the forms for them — and then sign under penalty of perjury that it was done right.

If you knew how to do it right, you wouldn’t have to go to somebody else to have it done, would you? ...

It is also worth noting that the people who are said to be earning “obscene” amounts of money are usually corporate executives. There is no such outrage whipped up when Hollywood movie stars make some multiple of what most corporate executives make.

In short, Mr. Sowell is asking, "Whose wealth is it anyway?" Did the government earn this wealth? No, they didn't. Why should they be the ones to decide who is worthy to spend that wealth? Did the government produce any product, any widgets, any business that will employ others? Unless you count the bureaucracies needed to collect and redistribute this wealth, the answer is no.

In reading Mr. Sowell's article, I thought directly of the United States, but Tom at Libertarian Leanings looks at this from a world view.

Israel has nowhere near the natural resources of the Arab states, yet they are wealthier by far. According to the CIA World Factbook, Israel produces a measely 2740 barrels of oil per day. At the same time Saudi Arabia puts out 9,475,000, and Iran 3,979,000. Yet Israel enjoys a per capita GDP of $25,000, while Saudi Arabia and Iran come in at $13,100 and $8,400 respectively. The income gap is not a crisis in Israel because Israelis have the freedom to produce wealth. Arab state citizens have less freedom, less wealth, and less hope for getting it.

Unfortunately, leftists (and Democrats) can't bring themselves to support the spread of freedom. Their antidote to the growing gap between the rich and the poor is to prevent the creation of wealth. Taxation discourages an activity, so the lefty solution to their contrived crisis is to tax wealth (income) at ever higher rates as a person demonstrates ever higher success in creating it. The Arab solution is to wipe Israel off the map. Actually, there are Democrats who seem to be coming around to that view.

This brings me back to the United States, to the Fair Tax, which would replace the federal income tax system with a progressive national retail sales tax. It provides a "prebate" to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement and, through companion legislation, repeal of the 16th Amendment.

This nonpartisan legislation (HR 25/S 25) abolishes all federal personal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes and replaces them all with one simple, visible, federal retail sales tax – collected by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. (more)

Why should people be punished because they took the risks to build a business, to produce a product, to creat a new widget? Why should they be punished by having the government take away a large portion of their profits, profits that could be used to produce MORE jobs, more widgets, more wealth? Why should the creators of wealth, who give much of that wealth away to worthy and needy organizations, be punished? They shouldn't.

On the world scene, Brad leaves a comment at Thought Streaming

"One can never force a productive, ambitious, disciplined spirit to subsidize weak mindsets girded by overactive libidos, they will always rebel,...". Graeme also leaves a comment, " ...if you give people a "voice" at work, they will produce more. They have incentive to work."

If you let people produce wealth, reinvest wealth, and use it as they see fit without government intrusion, you will actually see more help being given to those in need; more opportunities for those in need of better jobs, higher salaries, more education. Don't punish people for using the gifts and opportunities God gave them.

That my dear friends is what folks like Edwards (and Hillary Clinton) want to do.

The FairTax Blogburst is jointly produced by Terry of The Right Track Blog and Jonathan of Publius Rendezvous. If you would like to host the weekly postings on your blog, please e-mail Terry. You will be added to our mailing list and blogroll.

FAIR TAX BLOGBURST 12-20-06

Please note: The following references Walter E. Williams' article, The Fair Tax Book, published 12/13/06. --f.m.

by Jonathan of Publius Rendezvous

I came across this article several weeks ago from one of my favorite columnists. Professor Williams has a very succinct way of conveying complicated topics and themes. If you are not a regular reader of his, you should at least check out his regular column at Townhall.

In this piece, Professor Williams tackles the Fair Tax, and as we would hope he describes some of the highlights and benefits that would be reaped upon its passage.

If enacted, the Fair Tax would eliminate: the federal individual income tax, alternative minimum tax, corporate and business taxes, capital gains tax, Social Security and Medicare taxes, and estate and gift taxes. These taxes would be replaced by a 23 percent sales tax on all goods and services sold at the retail level. The Fair Tax would be revenue-neutral in the sense that it would replace the revenue from current federal taxes; thus, it would change the way government is funded. Our current tax code is an abomination, and we desperately need that change. The time Americans spend simply complying with our tax code comes to 5.8 billion hours of record-keeping, filing taxes, consulting, legal and accounting services. Breaking those hours down to a 40-hour work week, it translates into a workforce of 2.77 million people. That's more than the workforce of our auto, aircraft, computer and steel manufacturing industries combined.

The Fair Tax has much to recommend in its favor, such as being a more efficient form of taxation. It would go a long way toward protecting our privacy and preventing Congress from using the tax code to micromanage our lives. The Fair Tax is an excellent idea, but only under three conditions: first, the repeal of the Sixteenth Amendment that created the income tax; second, a provision fixing the tax at, say, 23 percent; and third, a constitutional amendment mandating that a tax increase requires a three-fourths vote of Congress. Notwithstanding any provisions within the Fair Tax, if the Sixteenth Amendment weren't repealed, down the road we'd find ourselves with a national sales tax and an income tax.

But, what I found to be the most interesting is the Professor William's take on the prospects of the passage of the Fair tax. Seeing it as a tremendous obstacle, Professor Williams is quite pessimistic in outlook. While we here at the Fair Tax Blogburst respectfully disagree with this synopsis, his underlying rationale for the difficulty of passage of the Fair tax cannot be ignored.

You say, "Williams, it sounds as if you don't trust Congress." I don't trust Congress any farther than I can toss an elephant. During the debate prior to ratification of the Sixteenth Amendment, congressmen said that only the rich would ever pay income taxes. In 1917, only one-half of one percent of income earners paid income taxes. Those earning $250,000 a year in today's dollars paid one percent, and those earning $6 million in today's dollars paid 7 percent. The lie that only the rich would ever pay income taxes was simply propaganda to dupe Americans into ratifying the Sixteenth Amendment.

Here's my prediction: The Fair Tax will never become law. The two most powerful congressional committees are the House Ways and Means and the Senate Finance committees. These committees write tax law, and as such they are able to confer tax privileges on some Americans at the expense of other Americans. The Fair Tax would reduce or eliminate this form of congressional privilege-granting power and, subsequently, campaign contributions from the beneficiaries would dwindle.

The method used to finance the federal government is very important, but I've always argued that government spending is the true measure of its impact on our lives. If there were a Fair Tax, what's to stop Congress from deficit spending or inflating the currency? Deficit spending and inflation are simply alternative forms, albeit less obvious, of taxation.

You say, "What's Williams' solution?" My solution is an amendment limiting federal spending to a fixed percentage, say, 10 percent of the gross domestic product. You say, "Why 10 percent?" If 10 percent is good enough for the Baptist Church, it certainly ought to be good enough for Congress.

The question we must ask is "What makes Williams think that this will pass any easier than the FairTax?" The outcome is doubtful for the exact same reasons that Williams argues would doom the FairTax -- the committees which decide where certain monies are spent can also confer privileges on some Americans at the expense of other Americans. Limiting spending to 10% would eliminate much of the congressional privilege-granting power, and corresponding campaign contributions.

The one thing that the FairTax has behind it is the power of a grassroots organization. Ultimately, this is still a government of, by, and for the people. It is up to us to see that our representatives perform as we believe they should. It is up to us to insure passage of the FairTax bill. We must take Mr. Williams arguments for the FairTax and spread them as widely as possible, while ignoring his pessimism. Together, we can get this done.

And maybe in the meantime we can also cut spending, thus reducing the amount of tax required for the FairTax. Now isn't that an idea?

FAIR TAX BLOGBURST 12-13-06

Why our Political Leaders Should Embrace the FairTax Plan

by John DeJong of NotMeUSA.com

The Fair Tax Plan (HR.25/S.25) has been out for well over a year now and yet there are still many people who have never even heard of it. One would think that a plan as bold and beneficial as this would be sounded from one coast to the next. Yet that is not the case. As a point of fact there are many liberal political leaders who continually ridicule the Fair Tax Plan whenever it is mentioned. They’re acting under the misguided belief that this wonderful plan favors the “rich”. That is the farthest from the truth as one can come.

The sad fact is that if any of these doomsayers would take the time to actually read the entire plan then they would quickly recognize it for what it is—the greatest social welfare program of all time. This belief Fair Tax proponents share is held because HR.25/S.25 will do more for the “lower income” wage earners in the U.S.A. than any other liberal program(s) in existence today.

You see, all consumers will receive an annualized rebate (in 12 equal monthly installments) on necessary living expenditures up to the poverty level. The size of the monthly rebate will be determined by the government’s published poverty level for a particular household size, multiplied by the tax rate. What this means is that for each person the monthly rebate will be increased in order to pay for the entire household costs for the basic necessities of life. This monthly rebate is given to all citizens regardless of age, sex, race, or income level.

This is how the Fair Tax would have worked in the year 2000. An individual would have received 100% of their pay check. That is if they earned $250 per week they would have taken home $250 per week. Plus, the individual would also receive a monthly check of $160 each month to help pay for their basic necessities of life.

That’s a tax-free income and another $40 a week for your own benefit. The best part of all is what the Fair Tax Plan will do for families. Back in the year 2000 a family of four would have received an additional $431 rebate per month for their livelihood. That payment will happen each and every month until the children become adults. When one considers all of the added values with the Fair Tax in buying used items like cars and homes tax free; there is no better way of helping others to live the American dream.

Is that not what we all want in these United States? Is it not the entire Democratic doctrine to bring equality among the masses? So then why do your democratic leaders refuse to back HR-25/S-25 and all that it will do for America? These are the questions that you must demand of all of your representatives to answer — Democrats and Republicans alike.

The above are just a few of many more questions to be asked and I will address them all in following articles. Until then you can download and read the entire 40 page Fair Tax Plan brochure at the Fair Tax Volunteer website. While you’re there you will also find tons of stuff and highly important political information on how we can all persuade our representatives into enacting the FairTax Plan. Of course you can also join the revolution while you are there.

The FairTax Blogburst is jointly produced by Terry of The Right Track Blog and Jonathan of Publius Rendezvous. If you would like to host the weekly postings on your blog, please e-mail Terry. You will be added to our mailing list and blogroll.

FAIR TAX BLOGBURST 12-06-06

What Would It Mean to Pass the FairTax Plan?

by John DeJong of NotMeUSA.com

How would you like to keep one hundred percent of everything you earn? That is one hundred percent of your paycheck, your savings interest, your inheritance, your winnings and any money given to you from a benefactor. How much would you like never to have to worry about tax laws, deadlines, audits, penalties and punishments? Imagine a world where April 15 is just another day of the year… won’t that be wonderful?

It will soon come to pass. Some day in the not so distant future we will all benefit from the passage of the FairTax Plan (HR 25/S 25). Once this piece of legislation becomes law the United States will experience an economic escalation that is unprecedented in history. Imagine the cost of living actually moving downward! Envision fuel prices falling and the prices for everyday consumables lowering back down to sixties proportions. How about being able to have mortgage companies actually compete with low prices against each other?

With the FairTax in place we will see incredible job growth. There will be hundreds even thousands of jobs that foreign companies will be bringing back to America. It will be poetic justice when Asian companies start building “call centers” all over the USA. We’ll see Japanese, German, Chinese and even Mexican manufacturers moving into the USA to save huge sums of money while providing Americans with jobs-a-plenty.

Our farmers will actually be able to cultivate their lands knowing full well that their family business will stay in the family and not be sucked dry by the banks. There won’t be any need for tracking thousands of expenses just for tax purposes. When the patriarch passes away his family will be able to keep the farm because there won’t be anymore inheritance taxes. In fact, farming will become highly profitable again.

The FairTax will equally lessen crime and make criminals pay taxes from their illegal income for the first time ever. Because when crooks buy with their ill gotten gains they’ll be paying taxes on their purchases. For the first time ever, illegal aliens will also pay taxes despite their “under the table” cash income. Most of the lobbyists on Capital Hill will have their power brokerage decreased because tax “favors” will no longer be used to garner corporate political clout.

I have just touched the surface on all the inconceivable benefits that are going to be reaped once we make our political leaders realize that we want and need the Fairtax. The United States was always the world’s model for economic prosperity…that was up until the mid to late 1990’s. Then somewhere in that decade we fell behind several other nations. With the FairTax enacted, we will once again become the world’s economic trend setter and employment magnet.

This is the first in a series of FairTax articles that I will be writing. In each of the subsequent articles I’ll focus more on informing you with better detail about the FairTax benefits. If you would like to know everything about (HR 25/S 25) in advance then please go to the Americans for Fair Taxation website at http://www.fairtax.org/. There you will find tons of stuff and highly important political information on how we can all persuade our representatives into enacting the FairTax Plan.

FAIR TAX BLOGBURST 11-29-06

by Jonathan of Publius Rendezvous

Now that the aftermath of the elections have subsided, I want to follow-up on what TD said in the FTBB a couple of weeks ago about grassroots campaigning. As we have mentioned on countless occasions, whether you are a Republican or Democrat or Libertarian, the FairTax is for you.

I, myself did not heed my own advice for I grew disconcerted immediately after the election for the FairTax's prospects. Me, being an individual that leans right of center in virtually every facet of my life thought the Democrat Party would not be the party to implement the FairTax.

But, the more I have come to think of it the more I grow somewhat optimistic. Why? Well, the Democrat Party has promised to reform government in many ways, and one in particular is ethics reform and reducing/eliminating earmarks. This is where our grassroots campaign must be decisive. We must remain vigilant to stay one step ahead of societal evolution in bring in the nation our message. The FairTax fits this agenda. It will and is designed to work to disrupt and eliminate the albatross that is our current system.

People around this country can and are already beginning to realize this phenomenon. Take Mr. Stephen Sanders of Fayetteville, NC:

Congressional scandals were a part of the changes in the last election. Many citizens cast their votes out of disgust at the influence-peddling of some congressional representatives and their highly paid lobbyist friends.

Quite often, this influence-peddling involves special tax considerations for those who hire the lobbyists. The lobbyists make large salaries by persuading members of Congress to tweak the tax code in favor of the lobbyists’ clients. This is where loopholes, tax incentives, tax exemptions and tax exclusions come from. It is a large part of why the U.S. tax code is so complex and convoluted. It is also why we desperately need the Fair Tax.

The Fair Tax is very aptly named because it is, unlike the current income tax, fair. The Fair Tax replaces the income tax with a national retail sales tax. Under the Fair Tax, there are no exemptions, no loopholes and no special consideration for the privileged few. There is no convoluted tax code that even Internal Revenue Service experts cannot figure out. And because the Fair Tax treats everyone the same without exceptions, exemptions, and loopholes, there is less influence-peddling.