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WANT LESS INCOME TAX EVASION—ENACT THE FAIRTAX!
Jade Walle is a CPA and a partner in a Big Four accounting firm. Jade is also an AFFT board member. He has written a paper that demonstrates clearly why there will be a significant reduction of evasion under the FAIRtax compared to the present income/payroll tax system.
This is the Executive Summary:
Executive Summary
The FAIRtax will significantly reduce U.S. income tax evasion by 95% relative to the current gross tax gap. In 2019, the $780 billion gross tax gap would have been reduced to $41 billion under the FAIRtax. For 2020, the estimated $827 billion gross tax gap would be reduced to $43 billion, and by 2026, the estimated $1.2 trillion gross tax gap would be reduced to $55 billion.
This analysis summarizes the primary aspects of the current U.S. income and payroll tax system, relative to the FAIRtax, that create a fertile environment for income tax evasion that the country currently experiences. Next, the gross tax gap under our current U.S. income and payroll tax system is compared to an estimated tax gap that would persist if the FAIRtax were the primary mechanism in which the U.S. funded its treasury coffers, as opposed to the current income and payroll tax system.
The FAIRtax offers multiple aesthetically pleasing aspects of a tax collection system which contrast greatly with the current U.S. income and payroll tax system. David R. Burton’s January 2020 article, “The FairTax Will Materially Reduce Tax Evasion,” (the “Burton Study”) highlights that lower marginal tax rates, fewer collection points, increased likelihood of evasion being discovered, reduced complexity, increasing the clarity of penalties, sales tax gaps being lower, and an increase in perceived fairness are all aspects of the FAIRtax that make it much more efficient with significantly less tax evasion expected relative to our current income and payroll tax system.
Several of the aforementioned traits of the FAIRtax system may individually be difficult to quantify as it relates to a measurable reduction in tax evasion relative to the current income and payroll tax system. However, using available data, including the current gross tax gap outlined above as well as existing consumption tax system empirical evasion analysis and study, we can reasonably infer, extrapolate and calculate the effect on gross tax evasion upon adoption of the FAIRtax, while simultaneously eliminating the IRS, all income taxes, and the payroll tax.
Here is a link to the rest of this excellent paper.
CONCLUSION
Mr. Walle’s excellent paper is another tool that FAIRtax supporters can use to dispute any claim by the Ruling Class and their Swamp minions that enacting the FAIRtax would lead to more evasion than we have with the income tax. Remember, for them, the income/payroll tax system is a lucrative source of both self-enrichment and power. They’re not going to give it up easily, and they’ll say anything—no matter how ludicrous—to thwart our efforts to replace it with the FAIRtax.
After setting forth the true facts, Mr. Walle concludes:
Overall, an extremely conservative approximation of the decrease in the gross tax gap that the FAIRtax would yield, is an annual 95% illegal tax evasion reduction, in the form of a lower gross tax gap which in 2020, approximates $784 billion per year with an expected increase to a $1.1 trillion reduction in gross tax gap by the year 2026.
There is an old protest from someone trying to proclaim his innocence after he was caught doing wrong.
Are you going to believe your lying eyes or me?
There’s also an old lawyer joke.
How do you know when a lawyer is lying? When his lips are moving.
The same could be said for the Ruling Class and their Swamp minions. If their lips are moving, there’s a really good chance they’re lying.
So, on the subject of tax evasion, who are we going to believe? Mr. Walle and others like him giving us actual data, or the Ruling Class trying to protect their own interests? That should be a no-brainer.
If you have friends who don’t know about the FAIRtax send them to FAIRtax.org. Have them watch the white boards under “How It Works” and, if they agree, ask them to please join us.
Then contact your Members of Congress and the President and demand that Congress pass -the FAIRtax—the only fair tax.Jade Walle is a CPA and a partner in a Big Four accounting firm. Jade is also an AFFT board member. He has written a paper that demonstrates clearly why there will be a significant reduction of evasion under the FAIRtax compared to the present income/payroll tax system.
This is the Executive Summary:
Executive Summary
The FAIRtax will significantly reduce U.S. income tax evasion by 95% relative to the current gross tax gap. In 2019, the $780 billion gross tax gap would have been reduced to $41 billion under the FAIRtax. For 2020, the estimated $827 billion gross tax gap would be reduced to $43 billion, and by 2026, the estimated $1.2 trillion gross tax gap would be reduced to $55 billion.
This analysis summarizes the primary aspects of the current U.S. income and payroll tax system, relative to the FAIRtax, that create a fertile environment for income tax evasion that the country currently experiences. Next, the gross tax gap under our current U.S. income and payroll tax system is compared to an estimated tax gap that would persist if the FAIRtax were the primary mechanism in which the U.S. funded its treasury coffers, as opposed to the current income and payroll tax system.
The FAIRtax offers multiple aesthetically pleasing aspects of a tax collection system which contrast greatly with the current U.S. income and payroll tax system. David R. Burton’s January 2020 article, “The FairTax Will Materially Reduce Tax Evasion,” (the “Burton Study”) highlights that lower marginal tax rates, fewer collection points, increased likelihood of evasion being discovered, reduced complexity, increasing the clarity of penalties, sales tax gaps being lower, and an increase in perceived fairness are all aspects of the FAIRtax that make it much more efficient with significantly less tax evasion expected relative to our current income and payroll tax system.
Several of the aforementioned traits of the FAIRtax system may individually be difficult to quantify as it relates to a measurable reduction in tax evasion relative to the current income and payroll tax system. However, using available data, including the current gross tax gap outlined above as well as existing consumption tax system empirical evasion analysis and study, we can reasonably infer, extrapolate and calculate the effect on gross tax evasion upon adoption of the FAIRtax, while simultaneously eliminating the IRS, all income taxes, and the payroll tax.
Here is a link to the rest of this excellent paper.
CONCLUSION
Mr. Walle’s excellent paper is another tool that FAIRtax supporters can use to dispute any claim by the Ruling Class and their Swamp minions that enacting the FAIRtax would lead to more evasion than we have with the income tax. Remember, for them, the income/payroll tax system is a lucrative source of both self-enrichment and power. They’re not going to give it up easily, and they’ll say anything—no matter how ludicrous—to thwart our efforts to replace it with the FAIRtax.
After setting forth the true facts, Mr. Walle concludes:
Overall, an extremely conservative approximation of the decrease in the gross tax gap that the FAIRtax would yield, is an annual 95% illegal tax evasion reduction, in the form of a lower gross tax gap which in 2020, approximates $784 billion per year with an expected increase to a $1.1 trillion reduction in gross tax gap by the year 2026.
There is an old protest from someone trying to proclaim his innocence after he was caught doing wrong.
Are you going to believe your lying eyes or me?
There’s also an old lawyer joke.
How do you know when a lawyer is lying? When his lips are moving.
The same could be said for the Ruling Class and their Swamp minions. If their lips are moving, there’s a really good chance they’re lying.
So, on the subject of tax evasion, who are we going to believe? Mr. Walle and others like him giving us actual data, or the Ruling Class trying to protect their own interests? That should be a no-brainer.
If you have friends who don’t know about the FAIRtax send them to FAIRtax.org. Have them watch the white boards under “How It Works” and, if they agree, ask them to please join us.
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.”
Is it hopeless? When confronted with a seemingly impossible problem, remember the statement attributed to the author George Bernard Shaw who 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?”
Thank you for staying FAIRtax strong!
Yours In Liberty! Yours In Freedom!
Steve Hayes
Chairman, Americans For Fair Taxation
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