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Chairman's Report - May 10, 2019

THE SWAMP SHOULD BE EMBARRASSED BUT THEY ASK “WHY?”

The Swamp is confused by the growing unrest about the IRS not providing free filing software to lower income taxpayers.  Congress is requiring lower income taxpayers to rely on “free” software provided by tax preparation companies like TurboTax and H&R Block.  The Swamp asks, What is the big deal?  

This is the normal way for the Swamp to do business—taking money from a special interest group and delivering them a benefit even if it harms the American people.

In an article entitled “A bipartisan group in Congress wants to make it harder for you to do taxes”, Dylan Matthews makes the following points:
  • The Taxpayer First Act, discussed in a recent Chairman’s Report, prohibits the IRS from developing software to allow lower income people to prepare their tax returns at no cost;
  • The commercial tax preparers spent some $6.6 million just last year in lobbying costs to ensure that the IRS would not develop a competing software.
  • In a later article, Mr. Matthews points out that Intuit, the company that sells TurboTax, claimed in 2016 that the app has 31 million users and H&R Block prepared 20 million tax returns and millions more using TaxAct and TaxSlayer.
  • The Free File Alliance, a private industry group, says 70% of American taxpayers make less than $66,000 and are supposed to have free tax software provided by the commercial companies. 
  • Only 3% of eligible U.S. taxpayers use the free commercial program each year.
  • The most-likely reason is that the free preparation software option is not promoted by the tax preparation companies because the companies want to sell their fee-based services.
AN HONEST POLITICIAN IS ONE WHO, WHEN HE IS BOUGHT, WILL STAY BOUGHT

Simon Cameron, a wealthy businessman who became a U.S. Senator from Pennsylvania and served as Lincoln’s first Secretary of War in the Civil War, made this statement in the 1860’s but the Swamp really believes this.  Members are supposed to respect the way that things work in Congress.  Special interest groups pay lobbyists and lobbyists purchase fundraising tickets for Members and provide Members and their staffs comfortable places to work after they leave Congress.  

That is why the Swamp is so upset that some senior Members of Congress are questioning this benefit that the Swamp obtained for their tax preparation company clients.  

Senators Grassley and Wyden, the Chairman and Ranking Member of the Senate Finance Committee,  sent a letter to IRS Commissioner Rettig that made demands that the Swamp finds very offensive because it is asking their “behind the scenes activities” to be made public:
  • Recent news articles have alleged deceptive advertising practices and practices involving search-engine manipulation by some of the private sector participants in this program. 
  • Once the IRS has completed its review of these allegations, we request that you review the IRS' memorandum of understanding with the program's participants (known as the “Free File Alliance”) to ensure industry compliance, and take any necessary actions to ensure the integrity and purpose of the Free File program, including amending the memorandum as necessary to bar whatever deceptive acts and practices the IRS might uncover as a result of its investigation.
  • It is our understanding that far fewer taxpayers use the Free File program than are actually eligible. We need to ensure that is not caused in part by the actions of certain participants in the Free File program itself.
  • We look forward to receiving updates on the IRS' review of the Free File program and how the IRS expects to improve the ability of taxpayers to file their taxes and ensure that Free File Alliance members are upholding their commitments..
In what must seem the equivalent of “piling on,” here are the recent charges by Senator Elizabeth Warren, “These companies’ actions in hiding Free File from search engine results — and therefore from consumers — in order to artificially inflate profits and deprive low-income consumers of a cheaper product merit investigation as unfair and deceptive practices.”

The Swamp says, “Of course, these firms are looking to not give free services but steer people to pay for their other products.  Isn’t this the American Way?  You knew we were doing this not for the public but for our clients.  Why are you bringing this up?

CONCLUSION

All of this discussion about tax preparation software vendors using legislation to steer people into buying their software and the hand-wringing by the politicians reminds me of the scene in Casablanca.”  Rick, played by Humphrey Bogart, operates Rick’s, a bar in Casablanca during the early part of World War II.  Rick’s offers a bar, dining and a floor show.  It also has a casino which is frequented by Captain Renault, played by Claude Raines, the head of the local French police. Under pressure from the Nazis who actually control Casablanca, Captain Renault decides to close Rick’s place down:

Rick : How can you close me up? On what grounds?
Captain Renault : I'm shocked! Shocked to find that gambling is going on in here.
[a croupier hands Renault a pile of money] 
Croupier : Your winnings, sir.
Captain Renault : [sotto voce]  Oh, thank you very much.
[aloud] 
Captain Renault : Everybody out at once.

Obviously, if this dreadful income/payroll tax system is allowed to stay in place, the buying and selling of favors by the Swamp and their controlled Members will continue.  A way to stop this corruption of selling benefits and harming the rest of us is to replace the income/payroll tax system with the FAIRtax.

How great would it be if the Members of the House Ways And Means Committee and the Senate Finance Committee were actually spending their time not trying to maintain a failed income/payroll tax system but actually working to make things more efficient and better for the American people?

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?”

Isn’t it time to take back control from D.C.?

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?”

It is time to PASS THE FAIRTAX!  

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.”

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.


FAIRTAX POWER RADIO PODCAST & DIGITAL TV SHOW


#159 Should We Hit the Reset Button & Abandon the FAIRtax?


There is an email group of FAIRtax leaders from all parts of the country that frequently report activities or ask for help or suggestions. Staying in touch can help you avoid reinventing the wheel.  But reinventing tax reform is exactly what one person suggested last week. 


Marlene from Pennsylvania asks people to join her in starting a new campaign for tax reform and also suggests we must abandon the FAIRtax in order to fulfill her dream.  


The FAIRtax Guys get into the details of this proposal.  They break it down, piece by piece, in order to examine the full impact of this suggestion.  


Enjoy this discussion recorded in the new FAIRtax Power Radio studio.  Listen to the podcast and/or watch the digital TV show. 


We have yet another way for you to enjoy FAIRtax Power Radio/TV.  And you don’t have to “join” anything or “subscribe” to any site.  Just go to fairtaxguys.com to see our latest effort in getting the FAIRtax news spread far and wide.  


If you believe the FAIRtax is good for America, PLEASE let others know by turning them onto FAIRtax Power Radio - the ONLY weekly FAIRtax digital TV show in the country!  Watch every Wednesday at 11:30am (ET) on Facebook LIVE (www.facebook.com/fairtax).  If you can’t watch live or you don’t use Facebook, go to fairtaxguys.com to watch the show and keep up with the latest events.  


FTPR podcasts for each show are posted on Spreaker (http://bit.ly/2oesbk7), iTunes & iHeart Radio every Friday morning.  Since it’s a podcast, you can download it and play it whenever it’s convenient for you.  A free FAIRtax Power Radio app is available for iOS and Android.  


The FTPR weekly video episodes are Shared to a number of Facebook pages: FAIRtax Official (https://www.facebook.com/FairTax/), The FAIRtax Guys (https://www.facebook.com/thefairtaxguys/), Democrats for FAIRtax (https://www.facebook.com/DemocratsForFairTax/) and many others.  And don’t forget the new website that is not on Facebook: fairtaxguys.com


Please help us educate as many Americans about the FAIRtax as possible.  Be sure to tell everyone you know about this great format for FAIRtax Power Radio.  Whether you watch the weekly TV show or listen to the weekly podcast, this is a great way for more Americans to learn about the best tax reform plan in Congress at this time.


Remember, FTPR digital TV every Wednesday at 11:30 AM (ET) followed by the podcast on Friday morning and the new website (fairtaxguys.com) anytime.  Please watch, listen and tell everyone you know about FAIRtax Power Radio.  The FAIRtax: Once You Understand It, You’ll Demand It!


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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For those people, America’s Big Solution provides a starting point in their study the FAIRtax and is meant for people of any age.  And you can download it to your tablet or smartphone right now.  It’s also available in print form.  See below.


Do you know someone who would like an introduction to the FAIRtax and would prefer to read about it in a booklet 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.  


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