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Chairman's Report - March 9, 2018

MAYBE THE RIGHT PROBLEM BUT THE WRONG SOLUTION

The press is very distraught and upset that President Trump has announced that he is going to do what he promised during his campaign—impose tariffs on steel and aluminum imports.  There is some basis for the surprise from the pundits because campaign promises are, in their world, not to be carried out but only to be used to get elected.

Can anyone argue that preventing countries from destroying U.S. industries by subsidizing exports to make them far cheaper than U.S. products and destroy the U.S. industry. Once the U.S. industry is gone, then the exporting countries can increase the prices and make up for their earlier losses.

THE ROUND PEG IN THE SQUARE HOLE

As Keith Fox points out in this week’s FAIRtax Friday, many of the problems our President is seeking to solve are handled by the FAIRtax. 

To expand on what Keith says, an excellent article  entitled “THE VAT: MENACE TO FREE TRADE by Jerome Corsi appeared on February 3, 2007 on the World News Daily site.  Mr. Corsi discusses why we must change our tax system to adopt a VAT.  The VAT is a value added tax. 

Mr. Corsi points out:

  • The modern VAT was created by French economist Maurice Laur in the 1950s.
  • A VAT and a sales tax are both considered “indirect” taxes that ultimately are shifted to the consumer.
  • The main difference between a VAT and a sales tax is that the VAT is applied at each stage of production, whereas sales taxes are usually only imposed once, at the final point of sale.
  • Some 137 countries, including every major U.S. trading partner such as the EU countries, China, Canada and Mexico, have VAT systems.
  • A U.S. car that sells for $23,000 in the U.S. includes profit and covers various tax obligations of the producer, as well as pension costs for workers. When that car arrives in Germany, a 16 percent VAT will be added on to the $23,000 price, meaning that the car will be sold in Germany for $26,680.
  • Yet, no tax comparable to a VAT is imposed on a German car imported into the United States. Consider the example of a German car that is sold in Germany for $23,000 after the 16 percent VAT is imposed. The example is constructed to compare a U.S. car manufactured in the U.S. and sold in the U.S. that is roughly price competitive with a German car manufactured in Germany and sold in Germany.  
  • On the issue of differential treatment of tax systems, the U.S. is seriously disadvantaged by the application of WTO rules on taxes. With 137 countries applying a VAT tax and a worldwide VAT tax advantage of 15 percent, the U.S. faces up to $450 billion total disadvantage to U.S. exports ($180 billion) and export subsidies to import competition ($270 billion).
Conclusion
 
Given the choice between the VAT and the FAIRtax, of course the Swamp and the tax preparation lobbies will want the VAT.  The FAIRtax is just too simple.  Changes to the VAT can be made behind the scenes and favors can be sold by the Swamp.
 
However, except for the added complexity of the VAT, the result is the same—the tax is paid by the consumer.  Maybe our President will realize that rather than start a global trade war, he can accomplish much of what he wants and do an incredible thing for America by enacting the FAIRtax.
 
We must remind President Trump of what Dr. Martin Luther King said about starting a fight, “That old law about 'an eye for an eye' leaves everybody blind. The time is always right to do the right thing.”
 
President Trump, do the right thing and push the FAIRtax through to passage.
 
WHAT CAN EACH OF US DO
 
Call up the local or D.C. offices of your 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.
 
THERE ARE MANY POTENTIAL FAIRTAX SUPPORTERS AT A LOCAL FESTIVAL
 
One on One encounters are often the most productive.  In this week’s episode of FAIRtax Power Radio, The FAIRtax Guys give advice to other FAIRtax volunteers on how to approach people at a public event while manning a FAIRtax Information Booth. The Guys review the entire range of responses from totally ignoring you to proclaiming their long time support for the FAIRtax and wanting to help out.  As you encounter people and try to explain the benefits of the FAIRtax, you will probably experience some of these same responses.  
 
LAST WEEK WE REVIEWED OUR THREE DAYS AT CPAC 
 
In last week’s episode of FAIRtax Power Radio, The FAIRtax Guys reviewed a very successful trip to CPAC. Broadcasting LIVE from Exhibitors Hall Thursday, Friday and Saturday, The FAIRtax Guys interviewed public figures such as Gary Johnson, former Governor of New Mexico and twice Presidential candidate, Dr. Kelli Ward, candidate for US Senate from Arizona and Sharron Angle, currently a candidate for US House of Representatives in Nevada District 2. All these people are strong FAIRtax proponents. 
 
The Guys talk about all the many young adults that stopped at our booth, especially the young man who interviewed Ron about the FAIRtax.  Get the behind the scenes details of our trip to CPAC. 
 
The FAIRtax Guys wish to thank Marilyn Rickert of FairTax Nation for her generous offer to share her booth (#600) during this big event. It was a great opportunity and we took full advantage of it. 
 
HELP THE FAIRTAX GUYS EDUCATE OTHERS ABOUT REAL TAX REFORM
 
Telling your friends and relatives about our free weekly podcasts is a great way to help us garner more support.  It is the American people who must demand REAL tax reform in Congress.  We must inform America about the FAIRtax!  Please help us.
 
You can listen to FTPR on any platform - Mac or PC, iPhone or Android. And it’s 100% free. 
 
Listen on Spreaker.com (http://bit.ly/2oesbk7), iTunes (http://apple.co/1Te8VdF) or iHeart Radio (http://bit.ly/2eqEG7y) on your computer or smartphone.  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.  If you have trouble finding our free app, download the free Spreaker app. 
 
We post a new episode every Friday morning.  Please listen and tell everyone you know about the FAIRtax Power Radio.  
 
The FAIRtax: Once You Understand It, You’ll Demand It!
 
THE ELECTRONIC INTRODUCTION TO THE FAIRTAX - AMERICA’S BIG SOLUTION
 
America’s Big Solution is a basic introduction to the FAIRtax and is meant for people of any age.  And you can download it to your tablet or smartphone right now.
 
Do you know someone who would like an introduction to the FAIRtax and would prefer to read about it rather than search online for Tweets, Posts and Shares?  If so, America’s Big Solution is their best choice.
 
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 of the Florida FAIRtax Educational Association.  
 
You can buy an electronic version of ABS as follows:  AMERICA’S BIG SOLUTION is available for only $2.99 for the Amazon Kindle (http://amzn.to/1WIRHry), the Barnes & Noble Nook (http://bit.ly/1XeG8bH) and Apple iOS (http://apple.co/1tnqK0P).  
 
You can 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!
 
LINKS TO MORE INFORMATION
 
These links will help you promote and support 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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