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FAIRTAX FRIDAY & CHAIRMAN’S REPORT – June 16th, 2017

IS IT TIME FOR PARABLES?

You can listen to the “noise” being generated in D.C. for hours and listen in vain for anything specific.  There are people making assertions and charges but when you ask for specific data to validate their assertions, they look at you, ignore you and repeat their assertions.
 
This is really true with tax reform and tax policy.  Democrats and Republicans both make assertions about tax reform but they generally just ignore anyone that challenges their opinion and repeat their assertions.
 
In Matthew 13:13, Jesus explained why he used parables in his teachings. "Though seeing, they do not see; though hearing, they do not hear or understand.”  Maybe we need to use a parable.
 
A PARABLE FOR CONGRESS AND TAX REFORM
 
Suppose that every day, ten working men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our income/payroll taxes based on the amount of income we make, it would go something like this:
 
The first four men (the lowest earners) would pay nothing.
The fifth, would have to earn $1.15 to net enough to pay $1.
The sixth would have to earn $3.90 to net enough to pay $3.
The seventh would have to earn $9.45 to net enough to pay $7.
The eighth would have to earn $16.80 to net enough to pay $12.
The ninth would have to earn $26.10 to net enough to pay $18.
The tenth man (the highest earner) would have to earn $88.50 to net enough to pay $59.
  
The Same Situation Under the FAIRtax
 
Every day, the same ten men go out for beer.  The cost of the beer will be reduced from $100 to $85 because of the reduction in costs gained from eliminating the income/payroll tax at each stage of the production cycle for the beer.  When you add the FAIRtax to the bill the total will be $110.50.    
 
The first four men would still pay nothing.
The fifth would have to earn $1.15 to net enough to pay $1.15
The sixth would have to earn $3.45 to net enough to pay $3.45.
The seventh would have to earn $8.45 to net enough to pay $8.45.
The eighth would have to earn $13.80 to net enough to pay $13.80.
The ninth would have to earn $20.70 to net enough to pay $20.70.
The tenth man would have to earn $67.85 to net enough to pay $67.85.
 
Comparison
 
The table below shows how the present income/payroll tax, by pre-taxing consumption, conceals the taxes on consumption and how the FAIRtax, by taxing at the time of consumption, clearly shows the true cost of consumption.  
 
         
First Four Men 0 0 0 0
Fifth Man $1.15 $1.15 $1.15 $1.15
Sixth Man $3.90 $3.45 $3.90 $3.45
Seventh Man $9.45 $8.45 $9.45 $8.45
Eight Man $16.80 $13.80 $16.80 $13.80
Ninth Man $26.10 $20.70 $26.10 $20.70
Tenth Man $88.50 $67.85 $88.50 $67.85

Conclusion
 
Under the tax credit/prebate, all people are protected up to the poverty level.  For example, a family of four making $50,000 will receive a tax credit/prebate on their first $34,000 of purchases and pay the FAIRtax only on the remaining $16,000 of purchases of new retail goods and services.  Under the FAIRtax, this means that the family pays not 23% but only 7.36% on the entire $50,000.  Under the income/payroll tax this family would have paid 7.65% in federal payroll taxes alone.   
 
The advantages of the FAIRtax are clear to everyone except the D.C. establishment who make enormous profits from the income/payroll tax system and see no reason to do what is best for all of us.   This is the real reason that, "Though seeing, they do not see; though hearing, they do not hear or understand.”  

WHAT CAN EACH OF US DO
 
Call up the local or D.C. office of the 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.

HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES

Because of the varied attacks on the Ryan/Brady income tax plan, the White House has announced that they need to start over to determine the best tax plan to propose.

Abraham Lincoln said, “Things may come to those who wait, but only the things left by those who hustle.” 

We may only have a limited time to stop the fake tax reform being promoted by some in Congress.  If it passes, then the Elites will say that we need to wait before we consider any more changes.  To stop this fake reform, we must be able to ensure that our message is clearly heard not only by Congress but also by President Trump.  To do this we need your help.

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 in 2017.
 
Please go to this link to invest in AFFT and in your and your family’s future.

THE FAIRTAX GUYS INTERVIEW RANDY FISCHER

In this week’s episode of FAIRtax Power Radio, the FAIRtax Guys interview Randy Fischer, Chair of the Marketing & Communications Committee which is the most active committee in the AFFT (Americans For Fair Taxation). See what Randy has to say about getting the FAIRtax past “the establishment” in Washington and how getting a FAIRtax bill passed in Georgia or Alabama might push the pols in DC in the right direction. 
 
And don’t forget last week’s episode of FTPR in which The FAIRtax Guys discussed being trapped in the income tax box and the definition of “income” according to the IRS.  Since FTPR is a podcast, you can listen to any episode at any time you choose.  
 
FAIRtax Power Radio is a great way to keep up to date with tax reform efforts in Washington. 
 
Please help us spread the word about the FAIRtax and FAIRtax Power Radio.  Telling your friends and relatives about our free weekly podcasts is a great way to help us garner more support.  Help us keep America informed for it is the American people who must demand REAL tax reform. 
 
You can listen to FTPR on any platform - Mac or PC, iPhone or Android. And it’s 100% free.
 
Listen on Spreaker, iTunes or iHeart Radio on your computer or smartphone. Spreaker, iTunes and iHeart all have free apps.  But 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.  As stated earlier, we post a new episode every Friday morning.  Please listen in and tell everyone you know about the FAIRtax Power Radio podcasts.  
 
As stated earlier, we post a new episode every Friday morning.  Please listen in and tell everyone you know about the FAIRtax Power Radio podcasts. 
 
Learn more. Get involved. Make it happen!
 
AMERICA’S BIG SOLUTION - AN INTRO TO THE FAIRTAX
FOR THOSE WHO DON’T TWEET TO THE PRESIDENT
 
If you know someone who doesn’t spend all their time Tweeting and Sharing but would appreciate a quick introduction to the FAIRtax, this book is just what they need. Some people prefer to read a book about a new subject instead of searching a website.  If you know someone like this, we have the solution for them, AMERICA’S BIG SOLUTION which is an inexpensive e-book written as an introduction to the FAIRtax.
 
AMERICA’S BIG SOLUTION is available for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS.  
 
AMERICA’S BIG SOLUTION by Florida Volunteer Terry Tibbetts has been written to give people of all ages a basic introduction to the FAIRtax and encourage them to learn more about the most thoroughly researched tax plan ever presented to Congress.  It is a light hearted approach to a very serious subject. 
 
Everyone needs to know that we have an alternative to federal income tax and the criminal enterprise known as the IRS.  Everyone needs hope and AMERICA’S BIG SOLUTION provides that hope. AMERICA’S BIG SOLUTION is an alternative to the social media platforms competing for our attention. 
 
You can even 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!
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Links for Further Information

Please, if you'd like to keep studying and promoting 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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