The Flat Income Tax Myth And Its Dangerous Implications
For many years, politicians have been able to make promises about tax reforms that they never intend to actually happen. These politicians know that everyone hates the present income tax system and a promise to “fix” the problem is a message that will be well received.
Many of the 2016 presidential candidates are promising a “simple” flat income tax. This sounds good because who wouldn’t want to just fill out a postcard and pay their tax. Of course, the flat income tax is only good if it is in fact simple.
All of the flat income tax proposals retain some of the deductions that are in the present income tax system. Many keep the mortgage deduction and charitable deduction. Others keep more deductions.
However, the truth in D.C. is that even a well-intentioned president will have trouble pushing through a truly simple tax system. Many in Congress will point out that if you are keeping the mortgage deduction, which primarily benefits taxpayers making over $100,000 per year, then you have to put in childcare deductions or education deductions that benefit lower income people. This is perfectly logical if your intent is not to collect revenues for the government in the most efficient way but to accomplish many social and political objectives through the income tax code.
Even if a president is elected with a mandate that allows him or her to force through a relatively simple flat income tax, before the ink on the bill is dry the lobbyists and special interests will start working to “fix” the bill and add back provisions that will benefit their clients or special interests.
The truth is that many in D.C. benefit from the present income tax system. A number of pundits on the right have made a good living for many years arguing against the present income tax. A number of pundits on the left have also made a good living for many years arguing about how to improve the present income tax to make it more fair.
Many lobbyists in D.C. make the majority of their income representing corporations or special interests that are trying to protect their tax benefits or obtain more.
One lobbyist told me that a serious flat tax proposal in Congress would make him hire many more lobbyists because there would be an avalanche of money pouring into D.C. from corporations and special interest groups. They want to protect their “benefits” or “special breaks.”
Why Passage of a “Flat Income Tax” Hurts Real Reform
While it would be humorous to look at people trying to say with a straight face that they support their version of a flat income tax, it is actually not a laughing matter. If a flat income tax was passed, it would allow politicians to say, “We need to see how this works before we look at any other tax reform.”
Why They Fear The FAIRtax
Once you tear the income tax out by the roots and replace it with a national retail sales tax, many in D.C. will find themselves looking for other employment. As support for the FAIRtax grows and many in D.C. see it is a possible threat to their income, some of the “stakeholders” who oppose real tax reform are looking at labeling a tax reform plan as a “flat income tax.” They know that the “fix is in” and that it will only be a matter of months before they can start adding back the corporate and special benefit provisions to the “flat income tax.”
October Washington Trip
Peggy and I are planning a trip to D.C. the last week in October. We really need your help in obtaining meetings with Members.
Please contact your Member of Congress and ask them to meet with Peggy and me. Indicate that you would like to join the meeting via the telephone. As you get responses, please send them to Peggy at Peggy.Green-Ernst@FairTax.org.
1040 Club
Thanks to each of you who have joined the 1040 Club. You are ensuring that Americans For Fair Taxation can continue to promote the FAIRtax.
If you are not a member of the 1040 Club, or if you are a member but want to join for someone else, please go to this link and sign up.
FAIRtax Power Radio and Would Thomas Jefferson Think We Are Free
Whether you’re a FAIRtax volunteer or an informed citizen who wishes to be better informed, we encourage you to listen to FAIRtax Power Radio, the online radio show that is available when you are. The FAIRtax Guys discuss and analyze the problems with the current income tax system and the best replacement, the FAIRtax. We also have great guests periodically such as area business people, a Congressman, leaders within the FAIRtax organization and even Thomas Jefferson and Rod Serling (Program 19). FTPR is FREE to the listener on two different websites - SoundCloud (http://bit.ly/1KNsOof) and YouTube (http://bit.ly/1PZUFVU). Both SoundCloud and YouTube have free apps for smartphones so you can listen while you’re on the go. Our goal is to offer a discussion of the most thoroughly researched tax reform proposal, the FAIRtax, and make it seem like a family discussion at the kitchen table. Listen to our programs and then tell your friends and relatives about the show.
AFFT National LOGO Store and Scrolling Signs
Going into the primary system, it is even more important that all of us have FAIRtax signs that we can bring to political rallies. Many venues will not allow us to bring signs attached to metal or wood holders. That is why Rudy Treml designed and had printed the scrolling FAIRtax signs. Visit our National Store at www.fairtaxlogostore.org and purchase some Personal FAIRtax℠ Scrolling Handheld Event signs.
It is a handheld scrolling event sign printed in color on both sides with our new logo. When folded up, this banner is only 2” x 9” but opens up to a 27” x 9” presentation
which self-retracts. It is ideal for all political events and easily fits in a pocket, jacket or purse when not in use. To see a picture of this banner please click here.
Thank You For Opening The FAIRtax Chronicles, Our Sponsored Mailings
We plan to do several of these mailings each month. If you take a minute to open the sponsored emails and click through to the website, you are making an in kind contribution to AFFT. It is not required to actually make a purchase, but your minute of time will ensure that AFFT is paid ever larger amounts from people paying for us to send their offers to our supporters.
Again, we are making every effort to ensure that we work with only reputable companies. If you feel that any FAIRtax-sponsored email is objectionable, please email us at info@fairtax.org and tell us why. You can also opt to not receive these sponsored email messages but still receive FAIRtax emails.
Thank you for staying FairTax strong!
For many years, politicians have been able to make promises about tax reforms that they never intend to actually happen. These politicians know that everyone hates the present income tax system and a promise to “fix” the problem is a message that will be well received.
Many of the 2016 presidential candidates are promising a “simple” flat income tax. This sounds good because who wouldn’t want to just fill out a postcard and pay their tax. Of course, the flat income tax is only good if it is in fact simple.
All of the flat income tax proposals retain some of the deductions that are in the present income tax system. Many keep the mortgage deduction and charitable deduction. Others keep more deductions.
However, the truth in D.C. is that even a well-intentioned president will have trouble pushing through a truly simple tax system. Many in Congress will point out that if you are keeping the mortgage deduction, which primarily benefits taxpayers making over $100,000 per year, then you have to put in childcare deductions or education deductions that benefit lower income people. This is perfectly logical if your intent is not to collect revenues for the government in the most efficient way but to accomplish many social and political objectives through the income tax code.
Even if a president is elected with a mandate that allows him or her to force through a relatively simple flat income tax, before the ink on the bill is dry the lobbyists and special interests will start working to “fix” the bill and add back provisions that will benefit their clients or special interests.
The truth is that many in D.C. benefit from the present income tax system. A number of pundits on the right have made a good living for many years arguing against the present income tax. A number of pundits on the left have also made a good living for many years arguing about how to improve the present income tax to make it more fair.
Many lobbyists in D.C. make the majority of their income representing corporations or special interests that are trying to protect their tax benefits or obtain more.
One lobbyist told me that a serious flat tax proposal in Congress would make him hire many more lobbyists because there would be an avalanche of money pouring into D.C. from corporations and special interest groups. They want to protect their “benefits” or “special breaks.”
Why Passage of a “Flat Income Tax” Hurts Real Reform
While it would be humorous to look at people trying to say with a straight face that they support their version of a flat income tax, it is actually not a laughing matter. If a flat income tax was passed, it would allow politicians to say, “We need to see how this works before we look at any other tax reform.”
Why They Fear The FAIRtax
Once you tear the income tax out by the roots and replace it with a national retail sales tax, many in D.C. will find themselves looking for other employment. As support for the FAIRtax grows and many in D.C. see it is a possible threat to their income, some of the “stakeholders” who oppose real tax reform are looking at labeling a tax reform plan as a “flat income tax.” They know that the “fix is in” and that it will only be a matter of months before they can start adding back the corporate and special benefit provisions to the “flat income tax.”
October Washington Trip
Peggy and I are planning a trip to D.C. the last week in October. We really need your help in obtaining meetings with Members.
Please contact your Member of Congress and ask them to meet with Peggy and me. Indicate that you would like to join the meeting via the telephone. As you get responses, please send them to Peggy at Peggy.Green-Ernst@FairTax.org.
1040 Club
Thanks to each of you who have joined the 1040 Club. You are ensuring that Americans For Fair Taxation can continue to promote the FAIRtax.
If you are not a member of the 1040 Club, or if you are a member but want to join for someone else, please go to this link and sign up.
FAIRtax Power Radio and Would Thomas Jefferson Think We Are Free
Whether you’re a FAIRtax volunteer or an informed citizen who wishes to be better informed, we encourage you to listen to FAIRtax Power Radio, the online radio show that is available when you are. The FAIRtax Guys discuss and analyze the problems with the current income tax system and the best replacement, the FAIRtax. We also have great guests periodically such as area business people, a Congressman, leaders within the FAIRtax organization and even Thomas Jefferson and Rod Serling (Program 19). FTPR is FREE to the listener on two different websites - SoundCloud (http://bit.ly/1KNsOof) and YouTube (http://bit.ly/1PZUFVU). Both SoundCloud and YouTube have free apps for smartphones so you can listen while you’re on the go. Our goal is to offer a discussion of the most thoroughly researched tax reform proposal, the FAIRtax, and make it seem like a family discussion at the kitchen table. Listen to our programs and then tell your friends and relatives about the show.
AFFT National LOGO Store and Scrolling Signs
Going into the primary system, it is even more important that all of us have FAIRtax signs that we can bring to political rallies. Many venues will not allow us to bring signs attached to metal or wood holders. That is why Rudy Treml designed and had printed the scrolling FAIRtax signs. Visit our National Store at www.fairtaxlogostore.org and purchase some Personal FAIRtax℠ Scrolling Handheld Event signs.
It is a handheld scrolling event sign printed in color on both sides with our new logo. When folded up, this banner is only 2” x 9” but opens up to a 27” x 9” presentation
which self-retracts. It is ideal for all political events and easily fits in a pocket, jacket or purse when not in use. To see a picture of this banner please click here.
Thank You For Opening The FAIRtax Chronicles, Our Sponsored Mailings
We plan to do several of these mailings each month. If you take a minute to open the sponsored emails and click through to the website, you are making an in kind contribution to AFFT. It is not required to actually make a purchase, but your minute of time will ensure that AFFT is paid ever larger amounts from people paying for us to send their offers to our supporters.
Again, we are making every effort to ensure that we work with only reputable companies. If you feel that any FAIRtax-sponsored email is objectionable, please email us at info@fairtax.org and tell us why. You can also opt to not receive these sponsored email messages but still receive FAIRtax emails.
Thank you for staying FairTax strong!