Is The FAIRtax Prebate A New Entitlement?
Some people have told me they are now hearing “conservatives” who are upset The FAIRtax is adding another entitlement with the prebate. The answer is NO! The FAIRtax isn't adding an entitlement. But before explaining why, we should look at what the prebate is and what it isn’t.
What is the Prebate and its Purpose?
A tax is a compulsory contribution levied by a government. Any tax system attempting to exempt a certain amount of income from the compulsory contribution to government is considered progressive. This means people earning less income will have the ability to purchase some of the necessities of life before their income is subject to the compulsory contribution to government.
Even though some economists and Swamp-Denizens don’t seem to understand, the rest of us know we only have money which can be used for our family’s consumption after we deduct all of the compulsory contributions to the federal, state and city entities. This means all compulsory contributions decrease the money we have available for ourselves.
One of the key elements commonly required of a compulsory contribution system is progressivity. Today this simply means a portion of a family’s income isn't subject to compulsory contribution and this leaves the family with more money.
The present federal income-tax system attempts to accomplish this by allowing people to use the standard deduction and income-tax credits for children in the household. The effect of this is to say a husband, wife and their 2 children, will be able to receive the first $24,000 of income and pay no income-tax (there is no amount of exemption from the Social Security & Medicare compulsory contributions because they tax everyone from the first dollar they earn and has no progressivity at all. This is why many lower income families pay more in Social Security & Medicare compulsory contributions than federal income-taxes).
The income-tax code tries to make it more “progressive” by providing a tax credit, meaning a reduction in the amount of the income-tax they owe by $2,000 for each child. This effectively decreases the voluntary contribution and increases the amount the family has for consumption.
The FAIRtax embraces the principle that a compulsory contribution system must be progressive, like the federal income-tax system, but it increases the amount of progressivity by eliminating the regressive payroll tax deduction and funding Social Security & Medicare through The FAIRtax.
Instead of trying to make the existing compulsory contribution system more progressive using complicated forms, The FAIRtax does it in a very straightforward and simple manner. While permitting no exemptions, The FAIRtax provides a monthly, universal prebate to ensure each family can consume tax-free up to the poverty level, with the overall effect of making The FAIRtax more progressive than the existing income-payroll tax system.
The monthly prebate check is calculated by multiplying the annual consumption allowance as measured by the Department Health & Human Services poverty guidelines times The FAIRtax % and dividing by 12. Poverty level spending represents what it costs families of varying household size and composition to buy their necessities of life. Each person or family sends in a form showing their eligible members.
Although everyone pays the same tax % at the cash register, the husband, wife and their 2 children will receive a monthly prebate of $648/month which will pay The FAIRtax on the first $33,820 of spending on new goods and retail services (a comparison of the taxes an average family pays under the present income-payroll tax system and The FAIRtax is contained in the June 28, 2019 Chairman’s Report).
Entitlement
Webster’s Dictionary defines entitlement:
The truth is simple. There are already entitlements built into the present federal income-tax/compulsory contribution system. The standard deduction and child credits fit each of the above definitions. True, it is disguised through the complications of the income-tax forms but it is providing a “right…specified by law…” because of a “belief one is deserving of or entitled to certain privileges.” It’s clearly provided by the IRS.
The FAIRtax DOESN’T add an entitlement. It does, however, make it more obvious and transparent by sending it each month. Many workers under the present compulsory contribution/federal income-tax system will get more money in their pockets each pay period by decreasing the federal income-tax withholding by their employer.
They are getting an “entitlement” each pay period.
Conclusion
Most people in The Swamp & Congress like the present income-payroll tax system because of the compulsory contribution each of us must make and because they can directly “threaten” us by reducing the amount of money each of us will have for our families’ consumption purposes. They do this by reducing the “entitlements” they have built into the present income-payroll tax/compulsory contribution system.
These same people fear The FAIRtax because the “entitlement” is determined objectively by the Department Health & Human Services poverty guidelines. It is not determined by who pays them the most in fees or contributions.
The Swamp and their allies in Congress remind me of the story about the judge preparing to hold a trial over ownership of a gold mine in the West. He opened the trial by announcing that at 7am the attorney for the plaintiff had dropped off a bag containing $5,000 in gold and at 8 am the attorney for the defendant had dropped off a bag containing $5,000 in gold. He then said it would be a fair trial.
Isn’t it time for us to reclaim our freedom from The Swamp and their allies in Congress by putting us more in control? The FAIRtax is a compulsory contribution system but we know the amount we have for our family consumption is not determined by who gives them the most gold.
Anyone who truly cares about the American people say, “It is time to pass The FAIRtax, the only “Fair Tax”!
The author George Bernard Shaw said, "You see things; and you say “Why”. But I dream things that never were; and I say “Why Not”.
We say to you President Trump, “Embrace The FAIRtax and real tax reform! Stand up to The Swamp. They will oppose you anyway because they see you as a threat. What have you got to lose?”
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.”
Take Back America Again! Pass The FAIRtax Now!
FAIRtax Online Resources
Americans For Fair Taxation - Home Page
Americans For Fair Taxation - Facebook Page
Americans For Fair Taxation - YouTube Channel
Americans For Fair Taxation - Twitter Page
Americans For Fair Taxation - Chairman's Report Podcast on Spreaker
Americans For Fair Taxation - Chairman's Report Podcast on Apple
Americans For Fair Taxation - Chairman's Report Podcast on iHeart Radio
Official FAIRtax Logo Store
The FAIRtax Guys - Home Page
The FAIRtax Guys - Facebook Page
The FAIRtax Guys - YouTube Channel
PopVox - The People’s Voice On All Things Legislative
Read Evasion Study Summary
The FAIRtax Guys
Ron Maiellaro & Bob Paxton perform their FAIRtax Power Digital-TV Show & Podcast. When the show streams to Facebook, The FAIRtax Guys plus a few AFFT experts are responding “live” to your comments and questions. A free app is available for iOS and Android.
Digital TV: Tues-8PM-ET Americans For Fair Taxation - Facebook Page
Digital TV: Wed-7PM-ET The FAIRtax Guys - YouTube Channel
Podcasts: Fri-6AM-ET Posted on Spreaker, Apple Podcasts & iHeart Radio.
Digital TV & Podcasts are available on The FAIRtax Guys - Past Shows
This week's Episode #173 - "How To Handle the Knee-Jerk Critic"
The FAIRtax Guys frequently ask people to get directly involved in promoting The FAIRtax. One way to do this is by helping out at an information booth set up by FAIRtax Volunteers at a public event. You don’t have to be an “expert” to pass out information or give a brief description of The FAIRtax and the response is usually very positive.
But then there are those very few people who want to challenge your information. You should welcome this as an opportunity for further explanation. What are some of the quick comments this small minority comes up with?
Fear not! The FAIRtax Guys have heard it all and in this episode will suggest ways of getting your information across in spite of their lack of understanding.
We try to provide something in every episode to help our viewers and listeners become educated about The FAIRtax. So please do what you can to help us create a groundswell of support for The FAIRtax across the entire country. Enjoy this episode and please Share it with others you know.
What Can Each Of Us Do?
Call the local and DC offices of your Representative and 2 Senators. Use the following script:
American's Big Solution - The FAIRtax Primer America Needs
Hard to believe but there still are people who have not heard of The FAIRtax. For those people, America’s Big Solution provides a starting point in their study of The FAIRtax and is meant for any age.
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 The Florida FAIRtax Educational Association. You can buy an electronic version for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS. You can purchase a print copy at the same Amazon link above for $9.25.
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 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 we work with only reputable companies. If you feel any FAIRtax-sponsored email is objectionable, please email us 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!
Respectfully,
Steve Hayes
Chairman, Americans For Fair Taxation
Some people have told me they are now hearing “conservatives” who are upset The FAIRtax is adding another entitlement with the prebate. The answer is NO! The FAIRtax isn't adding an entitlement. But before explaining why, we should look at what the prebate is and what it isn’t.
What is the Prebate and its Purpose?
A tax is a compulsory contribution levied by a government. Any tax system attempting to exempt a certain amount of income from the compulsory contribution to government is considered progressive. This means people earning less income will have the ability to purchase some of the necessities of life before their income is subject to the compulsory contribution to government.
Even though some economists and Swamp-Denizens don’t seem to understand, the rest of us know we only have money which can be used for our family’s consumption after we deduct all of the compulsory contributions to the federal, state and city entities. This means all compulsory contributions decrease the money we have available for ourselves.
One of the key elements commonly required of a compulsory contribution system is progressivity. Today this simply means a portion of a family’s income isn't subject to compulsory contribution and this leaves the family with more money.
The present federal income-tax system attempts to accomplish this by allowing people to use the standard deduction and income-tax credits for children in the household. The effect of this is to say a husband, wife and their 2 children, will be able to receive the first $24,000 of income and pay no income-tax (there is no amount of exemption from the Social Security & Medicare compulsory contributions because they tax everyone from the first dollar they earn and has no progressivity at all. This is why many lower income families pay more in Social Security & Medicare compulsory contributions than federal income-taxes).
The income-tax code tries to make it more “progressive” by providing a tax credit, meaning a reduction in the amount of the income-tax they owe by $2,000 for each child. This effectively decreases the voluntary contribution and increases the amount the family has for consumption.
The FAIRtax embraces the principle that a compulsory contribution system must be progressive, like the federal income-tax system, but it increases the amount of progressivity by eliminating the regressive payroll tax deduction and funding Social Security & Medicare through The FAIRtax.
Instead of trying to make the existing compulsory contribution system more progressive using complicated forms, The FAIRtax does it in a very straightforward and simple manner. While permitting no exemptions, The FAIRtax provides a monthly, universal prebate to ensure each family can consume tax-free up to the poverty level, with the overall effect of making The FAIRtax more progressive than the existing income-payroll tax system.
The monthly prebate check is calculated by multiplying the annual consumption allowance as measured by the Department Health & Human Services poverty guidelines times The FAIRtax % and dividing by 12. Poverty level spending represents what it costs families of varying household size and composition to buy their necessities of life. Each person or family sends in a form showing their eligible members.
Although everyone pays the same tax % at the cash register, the husband, wife and their 2 children will receive a monthly prebate of $648/month which will pay The FAIRtax on the first $33,820 of spending on new goods and retail services (a comparison of the taxes an average family pays under the present income-payroll tax system and The FAIRtax is contained in the June 28, 2019 Chairman’s Report).
Entitlement
Webster’s Dictionary defines entitlement:
- State or condition of being entitled: RIGHT
- A right to benefits specified especially by law or contract
- Belief one is deserving of or entitled to certain privileges
- A government program providing benefits to members of a specified group: funds supporting or distributed by such a program
The truth is simple. There are already entitlements built into the present federal income-tax/compulsory contribution system. The standard deduction and child credits fit each of the above definitions. True, it is disguised through the complications of the income-tax forms but it is providing a “right…specified by law…” because of a “belief one is deserving of or entitled to certain privileges.” It’s clearly provided by the IRS.
The FAIRtax DOESN’T add an entitlement. It does, however, make it more obvious and transparent by sending it each month. Many workers under the present compulsory contribution/federal income-tax system will get more money in their pockets each pay period by decreasing the federal income-tax withholding by their employer.
They are getting an “entitlement” each pay period.
Conclusion
Most people in The Swamp & Congress like the present income-payroll tax system because of the compulsory contribution each of us must make and because they can directly “threaten” us by reducing the amount of money each of us will have for our families’ consumption purposes. They do this by reducing the “entitlements” they have built into the present income-payroll tax/compulsory contribution system.
These same people fear The FAIRtax because the “entitlement” is determined objectively by the Department Health & Human Services poverty guidelines. It is not determined by who pays them the most in fees or contributions.
The Swamp and their allies in Congress remind me of the story about the judge preparing to hold a trial over ownership of a gold mine in the West. He opened the trial by announcing that at 7am the attorney for the plaintiff had dropped off a bag containing $5,000 in gold and at 8 am the attorney for the defendant had dropped off a bag containing $5,000 in gold. He then said it would be a fair trial.
Isn’t it time for us to reclaim our freedom from The Swamp and their allies in Congress by putting us more in control? The FAIRtax is a compulsory contribution system but we know the amount we have for our family consumption is not determined by who gives them the most gold.
Anyone who truly cares about the American people say, “It is time to pass The FAIRtax, the only “Fair Tax”!
The author George Bernard Shaw said, "You see things; and you say “Why”. But I dream things that never were; and I say “Why Not”.
We say to you President Trump, “Embrace The FAIRtax and real tax reform! Stand up to The Swamp. They will oppose you anyway because they see you as a threat. What have you got to lose?”
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.”
Take Back America Again! Pass The FAIRtax Now!
FAIRtax Online Resources
Americans For Fair Taxation - Home Page
Americans For Fair Taxation - Facebook Page
Americans For Fair Taxation - YouTube Channel
Americans For Fair Taxation - Twitter Page
Americans For Fair Taxation - Chairman's Report Podcast on Spreaker
Americans For Fair Taxation - Chairman's Report Podcast on Apple
Americans For Fair Taxation - Chairman's Report Podcast on iHeart Radio
Official FAIRtax Logo Store
The FAIRtax Guys - Home Page
The FAIRtax Guys - Facebook Page
The FAIRtax Guys - YouTube Channel
PopVox - The People’s Voice On All Things Legislative
Read Evasion Study Summary
The FAIRtax Guys
Ron Maiellaro & Bob Paxton perform their FAIRtax Power Digital-TV Show & Podcast. When the show streams to Facebook, The FAIRtax Guys plus a few AFFT experts are responding “live” to your comments and questions. A free app is available for iOS and Android.
Digital TV: Tues-8PM-ET Americans For Fair Taxation - Facebook Page
Digital TV: Wed-7PM-ET The FAIRtax Guys - YouTube Channel
Podcasts: Fri-6AM-ET Posted on Spreaker, Apple Podcasts & iHeart Radio.
Digital TV & Podcasts are available on The FAIRtax Guys - Past Shows
This week's Episode #173 - "How To Handle the Knee-Jerk Critic"
The FAIRtax Guys frequently ask people to get directly involved in promoting The FAIRtax. One way to do this is by helping out at an information booth set up by FAIRtax Volunteers at a public event. You don’t have to be an “expert” to pass out information or give a brief description of The FAIRtax and the response is usually very positive.
But then there are those very few people who want to challenge your information. You should welcome this as an opportunity for further explanation. What are some of the quick comments this small minority comes up with?
- Oh, it’ll never work!
- Regressive and hurts the poor
- Favors the rich
- Won’t fund the government.
- Too many people will cheat
Fear not! The FAIRtax Guys have heard it all and in this episode will suggest ways of getting your information across in spite of their lack of understanding.
We try to provide something in every episode to help our viewers and listeners become educated about The FAIRtax. So please do what you can to help us create a groundswell of support for The FAIRtax across the entire country. Enjoy this episode and please Share it with others you know.
What Can Each Of Us Do?
Call the local and DC offices of your Representative and 2 Senators. Use the following script:
- I am sure Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws.
- After they assure you 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 10 years.
- Since most will say they don’t believe their boss has seen the study, drop off a copy, email a copy or click Read Evasion Study Summary and copy/paste the link into an email.
- 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 simplifying the income tax will handle the problem.
- Explain, when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax. So, it’s unlikely they are going to pay 30-40% when they were paying 0% because they have already decided it’s okay to cheat.
- Say, 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 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 the way to handle evasion without unleashing the IRS audits is The FAIRtax.
- If you meet with your Representative or attend a town hall and ask these questions, you will be even more effective.
American's Big Solution - The FAIRtax Primer America Needs
Hard to believe but there still are people who have not heard of The FAIRtax. For those people, America’s Big Solution provides a starting point in their study of The FAIRtax and is meant for any age.
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 The Florida FAIRtax Educational Association. You can buy an electronic version for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS. You can purchase a print copy at the same Amazon link above for $9.25.
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 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 we work with only reputable companies. If you feel any FAIRtax-sponsored email is objectionable, please email us 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!
Respectfully,
Steve Hayes
Chairman, Americans For Fair Taxation
Help FAIRtax Become The Number One Issue in 2021
Enacting the FAIRtax must be a prominent topic in these times. We did it before, we can do it again, but we need your help!