Chairman’s Report - November 22, 2019

Why Senator Warren Should
Endorse The FAIRtax

Senator Elizabeth Warren is running for President.

She believes the role of the federal government is to provide things like:
  • Medicare for All, even for illegal aliens
  • Free college tuition
  • Cancellation of student debt
  • Universal childcare
  • Green manufacturing
  • Reliance on green energy
In some polls, Senator Warren is leading and in others she trails others, but the Real Clear Politics average of all of the polls shows her in 2nd place behind Joe Biden.

However, as her programs are analyzed, many questions are being raised about how she is going to pay for it all.  She has responded by proposing some HUGE income-tax increases and a new wealth-tax.

In a 11/15/2019 article in the Wall Street Journal, Richard Rubin examined Senator Warren’s tax proposals and concluded some taxpayers would incur a rate of over 100%.  Here is an example given by Mr. Rubin:

Consider a billionaire with a $1,000 investment and earns a 6% return of $60, received as a capital gain, dividend or interest.  If all of Ms. Warren’s taxes were implemented, he could owe 58.2% of $60, or $35 in federal tax.  Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60.  The result are taxes as high as $95 on the $60 return, for a combined tax rate of 158%.

Mr. Rubin points out Senator Warren intends to tax any gains in value on capital gains property, like stocks, real estate, or other assets which appreciate annually in value, even if they aren’t sold and no gain is actually realized.  Of course, this is a provision The Swamp and the tax professionals will love because it creates tremendous additional complexity and with it, the need for “smart” people to help us comply with the new laws.

So, just how would this work if Senator Warren’s proposals were applied to your house?
  • Did the house appreciate in value?, and if so, by how much?
  • You aren’t selling it, so how do you value the house?  Do you have to get an appraisal every year?  What if the IRS disagrees with your figures?
  • What if the house value goes down?  Do you get a credit for it?
  • Where do I get the money to pay the tax on the gain in value when I haven’t sold the house? 
Countless hours and literally millions of dollars would have to be spent trying to revalue assets every year to comply with this law.  These are dollars and hours which could be devoted to creating real value or maybe spending time with your family and not stressing over the taxes on the increase in value.

Senator Warren says these taxes would only be levied on “the wealthy”.  Of course, one of the problems of trying to aim a tax at a group of very wealthy people is these people have the ability to hire the best legal and tax professionals available.  They can restructure their assets to protect them from taxation, and they can also relocate to other more “tax friendly” areas.  Very few members of this group will just stand by and willingly have their wealth confiscated.

Senator Warren has proposed to levy an “exit” tax of 40% on the wealth of people renouncing their U.S. citizenship in an effort to escape her taxes.  This is likely to convince even the most ethical of the wealthy to justify taking any steps necessary to protect their wealth.
The FAIRtax Is
Senator Warren’s Solution

How great would it be Senator, if you could just explain Medicare for All was being paid for by The FAIRtax?  If you calculate it will cost $1 trillion per year, just add 5% to The FAIRtax rate.  Now your critics can’t attack you, as they are doing now, by asking how you will pay for the program.

If there is going to be free college tuition and forgiveness of student loan debt costing $1 trillion, just add 5% to The FAIRtax rate.

But wait, won’t this penalize lower income people more?  The solution would be to increase the prebate to exempt a family of 4 making $50,000 per year from The FAIRtax.  This will add more to The FAIRtax rate, but it can all be calculated on the back of a napkin.

It’s also very honest because everyone can see what it will cost them and their families.  Armed with the information, the American people can decide which programs they’re willing to pay for and which ones they’re not.  It will be like going to a restaurant and deciding which meal you want knowing what everything costs.

Most of the candidates running for the Democratic nomination for President are sincere in their beliefs of what’s best for Americans.  With The FAIRtax, they can now be truthful with the American people and, if enough of us agree, we can elect them and know we are going to receive these benefits and exactly what it’s going to cost us.

If The FAIRtax is law, no longer will anyone have to ask, “What will it cost me?”  No longer will candidates have to stumble around when asked, “How are you going to pay for this?”

The truth is The FAIRtax, to a large extent, puts the “truth” back into the promises of politicians and empowers the voters to really understand what they are being asked to vote for.  We can then concentrate on important questions like, “Is the proposal actually going to work?” or “Can it be done less expensively so it doesn’t increase The FAIRtax rate as much?".

It’s like going shopping.  Many of us spend time shopping for the best price because we know we only have a finite amount to spend, and any money we save will be available for other consumption.  Armed with the information about the true cost of government programs, we can also demand our elected leaders use the same discipline and approach we do when determining the price of the programs they are proposing.

If they don’t want to increase The FAIRtax rate, they, the politicians, will have to reduce spending in other areas.  Again, all of us can check the accuracy of their promised savings on the back of a napkin.
Senator Warren, wouldn’t this be better for all of the people?  Of course it's better!

Transparency is only one advantage of The FAIRtax.  It grows the economy faster and solves a lot of the problems created by the income-payroll-tax-system, including ensuring the solvency of Social Security & Medicare.  These are all concerns of candidates who really want to help the American people.

Isn’t it time for Senator Warren and the other Democrat presidential candidates to join the rest of us and say to The Ruling Class, “Let’s energize the entire United States and really make government spending transparent.  Pass The FAIRtax, the only “fair tax”.

It's time for Congress to have serious discussions about replacing the FAILED income-payroll-tax-system with The FAIRtax, the only truly "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!
 FAIRtax Online Resources
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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:  Tue-8PM-ET Americans For Fair Taxation - Facebook Page
Podcasts:   Tue-9PM-ET Posted on Spreaker, Apple Podcasts & iHeart Radio.
Digital TV are available on The FAIRtax Guys

This week's Episode #187 - "The Catastrophic History of the Income Tax"

As ratified in 1789, our Constitution forbade an income-tax imposed by the federal government.  And yet, everyday we now have an income-tax punishing our hard work and innovation, it's confusing and convoluted, encumbered by enormous evasion and is a drag on our economy.

Although an income-tax has been used in other countries for centuries, The FAIRtax Guys detail the calamitous history of the income-tax in the United States starting in the 1860’s, through the 20th century right up to today.

At any given time, do you know what the rates were and how many brackets there were?  Do you know the range from the low rates to the high?  How often did they change?  What were the maximum and minimum number of brackets?  And what effect have these changes had on the American economy throughout our history?

You’ll be amazed and surprised at the convulsions this tax code has endured along with the its negative effects on the American people.
And it all points to one fact: We need REAL tax reform!

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.
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.
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Thank you for staying FAIRtax strong!
Yours In Liberty!
Steve Hayes
Chairman, Americans For Fair Taxation




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Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!