Chairman’s Report - January 10, 2020

The Ruling Class
Is Horrified

A December 27, 2019 article in the WSJ entitled, “Rank-and-File Workers Get Bigger Raises”, by Eric Morath and Jeffrey Sparshott, pointed out the following:

 

• Wages for rank-and-file workers are rising at the quickest pace in more than a decade, even faster than for bosses, a sign the labor market has tightened sufficiently to convey bigger increases to lower-paid employees

 

• Pay for the bottom 25% of wage earners rose 4.5% in November from a year earlier, according to the Federal Reserve Bank of Atlanta

 

• Wages for the top 25% of earners rose 2.9%

 

• Similarly, the Atlanta Fed found wages for low-skilled workers have accelerated since early 2018, and last month matched the pace of high-skilled workers for the first time since 2010

 

• Nick Bunker, an economist with the job search site Indeed.com, said, “A strong labor market makes the bargaining power of lower-paid workers more like the labor market higher-wage workers experience during good times and bad”

 

• Nonsupervisory workers earned an average of $23.83 an hour in November according to the Labor Department; managers earned about twice that rate.

“The effective labor pool is smaller than what it has been in the past”, said Tony Darden, Mooyah’s president. “As you look to bring on folks, ultimately higher wages are used to attract them”.

Isn’t this good news for everyone?  With more people getting paid more money, fewer people will be dependent on the government and our economy will be even stronger.

So, why is this good news horrifying to the “Ruling Class”?  The answer is sad but obvious, the “Ruling Class” only cares about perpetuating its own power.  They see this “good news” as a threat to their power.

Throughout history, the “Ruling Class” has gone by different names.  They have been called kings, queens, warlords, tzsars and other forms of royalty.  However, their basic position on how the system is supposed to work has always been the same.

"We know best, so it’s your place to do what we tell you to do.

You are not allowed to question our judgment or our authority.

You work.

We take what we decide is proper, and you had better be grateful for what we leave for you”.

Sometimes the “Ruling Class” convinces their subjects their very survival depends on having the “Ruling Class” protect them from invaders or thieves.  Sometimes the “Ruling Class” use physical threats or threats of imprisonment.  Sometimes they threaten to take even more or give back even less of what they have taken.  The message is always the same.  Obey or lose what you have.

The “Ruling Class” has learned they can’t extort every group in the same way and stay in power.  They need to find a way to placate the most-wealthy and the least-wealthy among us.  The most-wealthy have the resources to actively oppose the “Ruling Class” and they have to be kept somewhat mollified.  The least wealthy have the least to lose and may rebel more readily.

They give the most-wealthy a portion of what they took from the workers and allow this group to have monopolies and other benefits allowing them to become even more wealthy.  Of course, the “Ruling Class” always maintains control by warning the most-wealthy their benefits can be taken away at any time if they get out of line.

The “Ruling Class” makes sure to give the least-wealthy another portion of what they took from everyone else.  They are happy for the least-wealthy group to depend not on their own production but on bits and pieces of what was extorted from the rest of us.  As long as the least-wealthy believe their very survival depends on the largesse of the “Ruling Class”, they will support the “Ruling Class”.

Of course, the rest of us, the great majority, will tolerate the “Ruling Class” only if we can survive on our own even after the “Ruling Class” extorts more and more from us.  Consequently, the “Ruling Class” desperately tries to keep us believing we cannot survive and care for our families if we upset them.
 

The worst nightmare of the “Ruling Class” is we will wake up and discover the truth;

they are really just a bunch of unnecessary parasites enriching themselves at our expense.

These improvements in wages are no surprise to anyone who understands the basic concepts of supply and demand.  If you have a limited amount of something which is needed, its value goes up.

If the economy has improved enough for employers to hire people and there is a shortage of workers, what’s going to happen?  Obviously, employers will have to make more lucrative their salaries and other benefits to attract and retain good employees.  Suddenly employees are even more valuable.  This is good for both job seekers and current employees.  If they can get more pay and better benefits at another job, why are they going to stay with you?

The “Ruling Class” is worried.  They have been telling the least-wealthy group they cannot make it on their own.  Now, lower-skilled people can increase their income without a government bureaucrat forcing an employer to raise their wages.  This isn't good for the “Ruling Class” if people think they can do things for themselves.  Maybe they will start thinking they don’t need the help of the bureaucrats who are carrying out the policies of the “Ruling Class”.

 

Conclusion

Even more disturbing for the “Ruling Class” and their minions is this growth in wages has occurred under the crippling income-payroll-tax-system.  When The FAIRtax is adopted, the economy will grow even faster, competition for employees will increase even more, and wages and benefits for all types of employees will continue to increase.

In addition, The FAIRtax eliminates one of the most powerful weapons of the “Ruling Class”.  No longer will the “Ruling Class” be able to single out specific groups to punish by raising their taxes or changing their deductions.  With The FAIRtax, any change will apply equally to everyone and all of us can see it.  Creating “Class Warfare”, one of their most effective methods of pitting one group of citizens against another, will be eliminated.

Ignorance is the enemy of freedom.

When people finally see what the “Ruling Class” has been telling them is a lie, they’ll finally realize they don’t need the “Ruling Class” to survive!  They’ll quickly understand they don’t need a group of people whose only purpose is to divide us, steal from us and live large off the fruits of our labor.

In the Lincoln-Douglas debates, Abraham Lincoln said:

“It is the eternal struggle between these 2 principles — right and wrong — throughout the world.  They are the 2 principles that have stood face to face from the beginning of time; and will ever continue to struggle.  The one is the common right of humanity, and the other the divine right of kings.

It is the same principle in whatever shape it develops itself.  It is the same spirit that says, "You toil and work and earn bread, and I'll eat it".  No matter in what shape it comes, whether from the mouth of a king who seeks to bestride the people of his own nation and live by the fruit of their labor, or from one race of men as an apology for enslaving another race, it's the same tyrannical principle”.

Isn’t it time that we tell the “Ruling Class” that they’ll have to start producing their own bread and stop stealing ours?

Now is the time we demand the solution that so terrifies the “Ruling Class”.  Pass The FAIRtax—the only “Fair tax”!

The author George Bernard Shaw said these words in a play he wrote, You see things; and you say “Why?”  But I dream things that never were; and I say “Why not?”

Isn’t it time for us to ask, “Why not?” 

President Trump, “Embrace the FAIRtax, the only Fair Tax the only fair tax and the only 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!

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 FAIRtax Online Resources
 
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PopVox - The People’s Voice On All Things Legislative
Read Evasion Study Summary

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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:  Tue-8PM-ET Americans For Fair Taxation - Facebook Page
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Digital TV are available on The FAIRtax Guys

This week's Episode #194 - " The State of the FAIRtax"

As a fitting start to a new year and a new decade, The FAIRtax Guys interview Randy Fischer, a board member of Americans For Fair Taxation and Chair of their Marketing & Communications Committee.  In this interview, Randy gives an overview of the direction AFFT is taking in 2020 in their efforts to eventually make the FAIRtax the law of the land.

With a realization this year’s elections and the ongoing impeachment proceedings will draw most of the national attention, AFFT has decided to concentrate on further building its grassroots base and to assist, in any way possible, efforts by various states for a state level FAIRtax.

In previous episodes, The FAIRtax Guys discussed the efforts of the Alabama FAIRtax Volunteers, led by Chuck Bailey, to pass their version of The FAIRtax, complete with a Prebate and the elimination of their state income-tax.  Hopefully those efforts will bear fruit in the next few months.  But wait… there’s more!

Listen in to find out which states are beginning the process to follow Alabama’s lead.  You’ll be pleased and surprised at what you hear.

As always, the AFFT is looking for volunteers to help their efforts.  Watch or listen to see if there is some small way you can help.

There’s always more in FAIRtax Power Radio such as a reminder of the promotional items available now at Our Store and a review of Jim Bennett’s Grassroots Corner Report.
 

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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.

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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.

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Yours In Liberty!
Steve Hayes
Chairman, Americans For Fair Taxation