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Chairman's Report - October 27, 2017

“Lobbying firms report another strong quarter under Trump”

This is the title of an article that appeared at Politico.com on October 23, 2017.  The author looked at the third quarter Lobbying Disclosure Act reports and validates what I told Stuart Varney that the tax reform proposals were "early Christmas presents" for lobbyists and for Members of Congress.

Why do I include Members of Congress? The reason is that the more money made by lobbyists, the more money they can use to purchase tables and tickets at fundraisers for Members of Congress.

Former Members And Staff Working For Lobbying Firms

Open Secrets has looked at the number of former Members of Congress who are making large amounts of money as lobbyists.  Here is how their analysis starts, "Dick Armey. Tom Daschle. Tom Foley. Trent Lott. Once, these politicos ranked among Congress' most powerful members. Today, they share another distinction: They're lobbyists (or "senior advisors" performing very similar work). And they're hardly alone. Dozens of former members of Congress now receive handsome compensation from corporations and special interests as they attempt to influence the very federal government in which they used to serve."

Open Secrets has also looked at the revolving door for the hundreds of former Congressional staffers who are now working for lobbying groups.  It is a known recruiting message that if you work for a Member for a few years you will get relatively low pay during this time, but then you will be able to leave and get a much higher salary at a lobbying firm or group.

Akin Gump Strauss Hauer & Feld

Reporting receipts of $9.6 million for the past quarter, $1 million more than in the same quarter in 2016, Akin Gump is a law firm that employs large numbers of former Members and Congressional staff.  Open Secrets reported that 207 former Members of Congress and former Congressional staffers have worked for Akin Gump in the past few years.

The reason that they hire former Members and former staff is because they want to be able to tell their clients that they have access to current Members and current staffers and can get special benefits for their clients not available to the rest of us.  Much of these lobbying fees were paid to protect special benefits in the income tax code.

How else does anyone explain why the National Association of Realtors spent $22 million in the past two quarters for lobbying efforts?  They want to protect the mortgage deduction even though they admit that most of us will pay 15% more when we purchase a home.  Of course, the higher the purchase price, the higher the realtor commission.  The realtors and the wealthy benefit but the rest of us pay more.

Conclusion

Think of how many of these lobbyists would be looking for real jobs if we enact the FAIRtax.

This information points out why the Swamp is so against the FAIRtax.  Their income would be dramatically reduced and they have become blind and bitterly resist anything that affects their cash cow--the current Internal Revenue Code.

The Merriam Webster dictionary defines corruption as, " dishonest or illegal behavior especially by powerful people (such as government officials or police officers)"

It is interesting that the people who make the laws, Members of Congress and their staffers, have made it illegal to take direct payments from lobbyists to influence political actions.  However, they have said that it is ok to accomplish the same thing but legally by donations to election campaigns and by hiring former Members and staffers at very large salaries. 

Two former presidents, both members of the Democratic party, saw real problems when special interests began to influence legislation.  Thomas Jefferson said, "Our country is now taking so steady a course as to show by what road it will pass to destruction, to wit: by consolidation of power first, and then corruption, its necessary consequence." 

Andrew Jackson said, "I weep for the liberty of my country when I see at this early day of its successful experiment that corruption has been imputed to many members of the House of Representatives, and the rights of the people have been bartered for promises of office." 
 

The truth is the truth.  Remember, if we don't continue to tell the truth and demand a change, then this quote from George Orwell's 1984 may foretell our 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

Call up the local or D.C. offices of your House Member and two Senators and you can use the following script:

  • I am sure that Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws.
  • After they assure you that their boss is not in favor of anyone breaking the law, ask if they are aware of the Cebula study showing $9 trillion of evaded income/payroll taxes over the next ten years.
  • Since most will say they don’t believe their boss has seen the study, either drop off a copy or get an email address and send a copy to them for their boss.
  • Say you are going to call back in a week and ask what the Representative or Senator is going to do to stop this evasion.
  • In a week, call back and ask specifically what the Representative or Senator is going to do to enforce the law.
  • They probably will say their boss believes that simplifying the income tax will handle the problem.
  • Explain that when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax.  So it is unlikely that they are going to pay 30% or 40% when they were paying 0% because they have already decided it is okay to cheat.
  • Say that the only way to reduce evasion is to increase by tens or hundreds of thousands the number of comprehensive IRS audits done each year.
  • Point out that Evaders do not self-identify by putting an “E” on their income tax return.
  • 80% of the people likely to be audited are trying to comply, but they will be forced to endure these IRS audits as well.
  • Ask if the Member is in favor of this?
  • If they say no, then ask again how the Member proposes to stop people breaking the income tax laws.
  • Then explain that the way to handle evasion without unleashing the IRS audits is the FAIRtax.  

 

If you can see your Member or attend a town hall and ask these questions, you can be even more effective.


STEVE HAYES & FAIRTAX TAKES ON STUART VARNEY

FAIRTAX POWER RADIO EPISODE #80

Two weeks ago, in his Chairman’s Report, Steve Hayes discussed his interview with Stuart Varney on the Fox Business TV channel.  In this episode of FAIRtax Power Radio, The FAIRtax Guys critique Stuart Varney's performance during that interview. Based on some of the comments Varney made, it’s clear that he needs to do his homework on the FAIRtax.  However, Steve did take Varney to school on the subjects of tax evasion and Congressional tinkering with the tax code.  Listen and see how you can help educate the media on REAL tax reform, the FAIRtax.

In Part 2 of the interview with Jade Walle, a CPA from Colorado, he explained how the oldest profession in the world will finally be taxed under the FAIRtax. That’s because it’s very hard to escape a sales tax. This means the underground economy cannot escape paying the FAIRtax.  Listen in and learn why evasion of a national sales tax will be very small even compared to a state sales tax. (Hint: it has to do with the state “use tax.”) Much more great information that you can use to convince others that the FAIRtax is the only REAL tax reform proposal in Congress.

ARE YOU SPREADING THE WORD ABOUT FAIRTAX POWER RADIO?  Telling your friends and relatives about our free weekly podcasts is a great way to help us garner more support.  It is the American people who must demand REAL tax reform in Congress.  We must inform America about the FAIRtax!  Please help us.

You can listen to FTPR on any platform - Mac or PC, iPhone or Android. And it’s 100% free. 

Listen on Spreaker.com (http://bit.ly/27oJYlV), iTunes (http://apple.co/1Te8VdF) or iHeart Radio (http://bit.ly/2eqEG7y) on your computer or smartphone.  The easiest way to listen to FTPR on your smartphone is by downloading the free FTPR app.  Just search for “FAIRtax Power Radio” in your app store, download the app and start listening.  If you have trouble finding our free app, download the free Spreaker app. 

As stated earlier, we post a new episode every Friday morning.  Please listen and tell everyone you know about the FAIRtax Power Radio.  

The FAIRtax: Once You Understand It, You’ll Demand It!


HELP A NEWBIE LEARN ABOUT THE FAIRTAX WITH AMERICA’S BIG SOLUTION

America’s Big Solution is an introduction to the FAIRtax written by Terry Tibbetts, author of A Spartan Game: The Life and Loss of Don Holleder, with help from Ron Maiellaro, President of the Florida FAIRtax Educational Association.  

America’s Big Solution is a basic introduction to the FAIRtax and is meant for people of any age.  Do you know someone who would like an introduction to the FAIRtax and would prefer to read about it rather than search online for Tweets, Posts and Shares?  If so, America’s Big Solution is your choice.

You can buy an electronic version of ABS as follows:  AMERICA’S BIG SOLUTION is available for only $2.99 for the Amazon Kindle (http://amzn.to/1WIRHry), the Barnes & Noble Nook (http://bit.ly/1XeG8bH) and Apple iOS (http://apple.co/1tnqK0P).  

You can purchase a print copy at the same Amazon link above for $9.25.  Regardless of whether you choose the electronic format or the print format, you’ll find AMERICA’S BIG SOLUTION will give someone the boost they need to begin their study of the FAIRtax and the suggested resources to learn more. Buy AMERICA’S BIG SOLUTION now!


LINKS TO MORE INFORMATION

These links will help you promote and support the FAIRtax, make yourself familiar with the links below. We always do our best to keep our AFFT community up to date, and you can stay ahead of the curve using these convenient sites.


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