The Unnecessary Farm Crisis
Many commentators are pointing out the negative effects on Farmers caused by the “tariff war” with China.
According to the U.S. Department of Agriculture, the # of farms in the U.S. peaked at 6,800,000 in 1935 and has been unfortunately decreasing ever since.
The Farmers’ Burden Under The Income-Payroll Tax System
The major reason for the decline in the # of farms is the income-payroll tax system.
Higher Production Cost
Unlike their competitors in other countries who have a value added tax, American Farmers must include the price of all of their inputs into the price of their exported goods. This means a Farmer who grows tomatoes must include all of the costs like the: 1. Seed price, 2. Equipment fuel and repairs, 3. Employees social security & medicare taxes, 4. Cost in time and money to calculate and pay the income-payroll taxes. All of these and many more, embedded in the final price of the tomatoes.
The price to the tomato Farmer of all of these inputs increase because of the costs of the income-payroll tax system. While it varies, the amount of these increased costs is estimated between 10-20%. We assume the average is 15%, then the tomato Farmer will have to increase their price by 15%.
The Farmer’s competitors in all of our trading partners have to increase the prices of their inputs into the price of their tomatoes by at least 15% because of their value added tax. However, the HUGE difference between the American Farmer and the other Farmers is when it is time to export their tomatoes.
When the U.S. Farmer exports tomatoes to China, the additional 15% is included in the price of our tomatoes. For example, a container of tomatoes costs $10 when it leaves the U.S. and when it arrives in China, China adds its 19% value added tax. U.S. tomatoes sell in China for $11.90.
Assuming the competitor’s container of tomatoes cost the same $10, when the tomatoes are exported, the 15% value added tax is refunded and the container is received in China at a price of $8.50. When it arrives in China, the 19% tariff is imposed and this brings the price to $10.11, $1.79 less than the American tomatoes.
This problem is not better if the tomato Farmer competes in the U.S. with tomatoes grown by trade partners. Assuming all the facts are the same, the Farmer has tomatoes selling for $10 but the foreign exporter gets the same 15% refund of their value added taxes and the product costs $8.50 in the U.S.
Since the U.S. income-payroll tax doesn't directly tax imports, the foreign-grown tomatoes will have a 15% advantage over the U.S. Farmer when they compete in the U.S. markets.
Estate & Capital Gains Tax
Not bad enough already? Well, it becomes worse. Besides their Grit, land is the primary asset of the Farmer. The land usually appreciates but it cannot be sold while the Farmer is operating their business. When the Farmer dies, it is included in the Farmer’s estate. Today, there is a large exclusion exempting most Farmers. However, the estate tax is always only 1 election away from elminating or reducing the exemption to a very low amount, thus increasing the estate tax %.
This uncertainty about the estate tax makes planning for future generations very difficult and very uncomfortable. If the Farmer decides it is time to sell the land for a profit, they have to pay a capital gain on any profits.
The Farmer After The Fairtax Becomes Law
Lowered Production Cost
Because competition will cause all of the production costs to be reduced, the U.S. Farmer will be able to grow tomatoes and sell them not for $10 but $8.50 and make the same profit. When they earn the profits from the sale of their tomatoes, they will owe federal tax only when they make purchases of new goods and retail services for personal use.
In addition, they will be exporting tomatoes not at $10 per container but at $8.50 per container. This makes U.S. tomatoes much more competitive with foreign-grown tomatoes.
If the Farmer wants to sell the tomatoes in the U.S. market, then they will be sold at $8.50. Imported tomatoes will now be subject to The FAIRtax just like U.S. produced goods. This means U.S. products will be no longer be subject to the income-payroll tax penalty domestically and internationally. Additionally, Farmers will not have to spend the countless hours and hours and costs trying to comply with the federal income-payroll tax system.
Elimination of Estate Tax & Capital Gain Tax
Farmers will no longer live in fear of the estate tax. They will no longer have to sell their farm to avoid the uncertainty of the estate tax. They can freely, without tax, dispose of their land either during their life or after their death.
Conclusion
Farm Families, like all U.S. Families, deserve and are demanding to be treated fairly by the federal government. All of us deserve a sane tax system, i.e., The FAIRtax. Anyone who truly cares about the American people should 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! Pass The FAIRtax Now!
Online Resources
These links will help you promote and support The FAIRtax. 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.
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 168 - “Calling All Democrats! We Need Your Help to Pass The FAIRtax!”
Check out the cosponsors for HR 25 and you’ll find we have 33 of them at the time we recorded this show. And they all have these 2 things in common:
The FAIRtax Guys lay out the case of why Democrats should easily embrace The FAIRtax. At the same time, they recognize how polarized politics is in Washington. So let’s look beyond Washington. Let’s look in your own Congressional district.
When the going gets tough, the tough get going. The FAIRtax Guys believe there are enough FAIRtax Supporters to make a difference and secure more cosponsors, especially Democrat cosponsors. The FAIRtax Guys offer a “tutorial” on how you can be a “difference maker” by presenting The FAIRtax to your Representative so they cosponsor the most thoroughly researched tax bill ever presented to Congress.
Enjoy this episode and please Share it with others you know. We need a ground swell of Supporters like you to make this happen.
Recent comments from viewers encouraged The FAIRtax Guys to relaunch the “Slogan Contest”. There is a lot of talent in the viewership and The FAIRtax Guys would like to use some of that talent to come up with a catchy slogan that helps get the message out. America loves slogans. So get involved and “slogan away”. Click "Here" to email us your favorite slogan about the IRS.
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
Many commentators are pointing out the negative effects on Farmers caused by the “tariff war” with China.
According to the U.S. Department of Agriculture, the # of farms in the U.S. peaked at 6,800,000 in 1935 and has been unfortunately decreasing ever since.
The Farmers’ Burden Under The Income-Payroll Tax System
The major reason for the decline in the # of farms is the income-payroll tax system.
Higher Production Cost
Unlike their competitors in other countries who have a value added tax, American Farmers must include the price of all of their inputs into the price of their exported goods. This means a Farmer who grows tomatoes must include all of the costs like the: 1. Seed price, 2. Equipment fuel and repairs, 3. Employees social security & medicare taxes, 4. Cost in time and money to calculate and pay the income-payroll taxes. All of these and many more, embedded in the final price of the tomatoes.
The price to the tomato Farmer of all of these inputs increase because of the costs of the income-payroll tax system. While it varies, the amount of these increased costs is estimated between 10-20%. We assume the average is 15%, then the tomato Farmer will have to increase their price by 15%.
The Farmer’s competitors in all of our trading partners have to increase the prices of their inputs into the price of their tomatoes by at least 15% because of their value added tax. However, the HUGE difference between the American Farmer and the other Farmers is when it is time to export their tomatoes.
When the U.S. Farmer exports tomatoes to China, the additional 15% is included in the price of our tomatoes. For example, a container of tomatoes costs $10 when it leaves the U.S. and when it arrives in China, China adds its 19% value added tax. U.S. tomatoes sell in China for $11.90.
Assuming the competitor’s container of tomatoes cost the same $10, when the tomatoes are exported, the 15% value added tax is refunded and the container is received in China at a price of $8.50. When it arrives in China, the 19% tariff is imposed and this brings the price to $10.11, $1.79 less than the American tomatoes.
This problem is not better if the tomato Farmer competes in the U.S. with tomatoes grown by trade partners. Assuming all the facts are the same, the Farmer has tomatoes selling for $10 but the foreign exporter gets the same 15% refund of their value added taxes and the product costs $8.50 in the U.S.
Since the U.S. income-payroll tax doesn't directly tax imports, the foreign-grown tomatoes will have a 15% advantage over the U.S. Farmer when they compete in the U.S. markets.
Estate & Capital Gains Tax
Not bad enough already? Well, it becomes worse. Besides their Grit, land is the primary asset of the Farmer. The land usually appreciates but it cannot be sold while the Farmer is operating their business. When the Farmer dies, it is included in the Farmer’s estate. Today, there is a large exclusion exempting most Farmers. However, the estate tax is always only 1 election away from elminating or reducing the exemption to a very low amount, thus increasing the estate tax %.
This uncertainty about the estate tax makes planning for future generations very difficult and very uncomfortable. If the Farmer decides it is time to sell the land for a profit, they have to pay a capital gain on any profits.
The Farmer After The Fairtax Becomes Law
Lowered Production Cost
Because competition will cause all of the production costs to be reduced, the U.S. Farmer will be able to grow tomatoes and sell them not for $10 but $8.50 and make the same profit. When they earn the profits from the sale of their tomatoes, they will owe federal tax only when they make purchases of new goods and retail services for personal use.
In addition, they will be exporting tomatoes not at $10 per container but at $8.50 per container. This makes U.S. tomatoes much more competitive with foreign-grown tomatoes.
If the Farmer wants to sell the tomatoes in the U.S. market, then they will be sold at $8.50. Imported tomatoes will now be subject to The FAIRtax just like U.S. produced goods. This means U.S. products will be no longer be subject to the income-payroll tax penalty domestically and internationally. Additionally, Farmers will not have to spend the countless hours and hours and costs trying to comply with the federal income-payroll tax system.
Elimination of Estate Tax & Capital Gain Tax
Farmers will no longer live in fear of the estate tax. They will no longer have to sell their farm to avoid the uncertainty of the estate tax. They can freely, without tax, dispose of their land either during their life or after their death.
Conclusion
Farm Families, like all U.S. Families, deserve and are demanding to be treated fairly by the federal government. All of us deserve a sane tax system, i.e., The FAIRtax. Anyone who truly cares about the American people should 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! Pass The FAIRtax Now!
Online Resources
These links will help you promote and support The FAIRtax. 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.
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 168 - “Calling All Democrats! We Need Your Help to Pass The FAIRtax!”
Check out the cosponsors for HR 25 and you’ll find we have 33 of them at the time we recorded this show. And they all have these 2 things in common:
- Understand how important REAL tax reform is to our country
- Are all Republicans
The FAIRtax Guys lay out the case of why Democrats should easily embrace The FAIRtax. At the same time, they recognize how polarized politics is in Washington. So let’s look beyond Washington. Let’s look in your own Congressional district.
When the going gets tough, the tough get going. The FAIRtax Guys believe there are enough FAIRtax Supporters to make a difference and secure more cosponsors, especially Democrat cosponsors. The FAIRtax Guys offer a “tutorial” on how you can be a “difference maker” by presenting The FAIRtax to your Representative so they cosponsor the most thoroughly researched tax bill ever presented to Congress.
Enjoy this episode and please Share it with others you know. We need a ground swell of Supporters like you to make this happen.
Recent comments from viewers encouraged The FAIRtax Guys to relaunch the “Slogan Contest”. There is a lot of talent in the viewership and The FAIRtax Guys would like to use some of that talent to come up with a catchy slogan that helps get the message out. America loves slogans. So get involved and “slogan away”. Click "Here" to email us your favorite slogan about the IRS.
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!