THE FAIRTAX IS NEEDED NOW

The FairTax is needed NOW, to dig us out of this economic morrass. It would solve our economic problems, put Social Security and Medicare back on solid ground, bring trillions of dollars in off-shore money back to America and solve the problems of corporate America, including unemployment.

I don't want to see our country become a third world country because Congress turns up its nose at "change". "Change" to the FairTax and their will again be "Hope."

TRANSITION FROM INCOME TAX TO FAIRTAX

Below is an excerpt from an e-mail from a FairTax volunteer:

Under frequently asked questions on the FT website, the question "What do we experience in the transition from the income tax to the FairTax?" is No. 46. The reply is:

Everyone will have to think about taxes in a different way. Income -- what we earn -- no longer has to be documented, measured, and tracked for tax purposes. The only relevant measure of our tax liability is the amount we choose to spend on final, discretionary consumption. Tax-related issues are suddenly a lot simpler and more straightforward than they used to be. The aggravation and anxiety associated with “April 15th ” disappears forever after passage of the FairTax. The FairTax is not new -- most Americans come into contact with sales taxes daily, since 45 states currently use them to collect state revenues. It is easier to switch from an income tax to the FairTax system than it is to switch from gallons to liters, or from feet to meters! Of course, those who depend on the structure and complexity of our current system (e.g., tax lobbyists, tax preparers, and tax shelter promoters) will have to find more productive economic pursuits. However, everyone will have enough advance notice to adjust to the new system.

Job creation booms. Residential real estate booms. Financial services boom. Exports boom. Retail prospers. Farming and ranching prosper. Churches and charities prosper. Civil liberties are enhanced. In short, it is difficult to imagine the far-reaching, positive effects of this change. Though this tax policy is exactly what our Founding Fathers counseled us to do with the Federalist Papers and the Constitution.

IT'LL NEVER HAPPEN? I THINK IT WILL..........

This was presented to the East Tennessee Libertarian group on May 13th. It was an adaptation of an article by our own John Linder. Perhaps this will help some of you in presenting the FairTax.


Upon telling folks about the FairTax bill, they frequently say, “It’ll never happen.” This has been the common reaction to every big idea ever proposed in the history of man. If the FairTax plan is such a great idea, if it is much needed, then why will it never happen?

Have we become so cynical that we cannot believe that much-needed change is possible?

Have we come to accept the current tax code as a permanent, immutable part of our lives?

The FairTax bill would repeal all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, death taxes and gift taxes. They would be replaced with a revenue-neutral, 23% personal consumption tax. Americans would receive their entire paycheck. They would have the power to choose exactly when and how much to pay in taxes. It is in keeping with Libertarian thinking that all taxes should be voluntary and that government should not have the power to confiscate our earnings.

The FairTax achieves this by offering to every household of American citizens a tax prebate. The prebate will amount to 23% of the money they spend up to the poverty level. Families that spend only to buy basic necessities will be tax free because the prebate will cover their taxes every month. When a rich man decides to buy a new private jet 23% of the purchase price will enter the federal treasury. America will return to taxing wealth instead of wages.

There are many reasons why changing the way we fund our federal government is necessary. Here are three of the most compelling:

1) Our current code is taxing American businesses into a severe disadvantage in competing in the global economy. Because of corporate, personal and payroll taxes our businesses have a 22% embedded tax in every good they produce. Foreign goods do not have this burden and so have a leg up on American industries. The FairTax will give our industries the best business cost structure in the world.

2) Our current code punishes productivity. On average, Americans lose 33% of their wages to taxation. The FairTax will unleash the power of the American worker and greatly increase their spendable income.

3) Our current code violates the right to privacy of Americans. The FairTax will restore the privilege of anonymity long cherished but long denied. Under the FairTax, there will be no more IRS and no reason for the government to know how much you earn and how you spend it.

Change should be a no-brainer, but the current system is perceived as a constant that has always been and always will be. The reality is that following the 1894 Supreme Court decision declaring an income tax unconstitutional, it took politicians 19 years to contrive and have ratified the 16th amendment in 1913. Subsequently, Congress adopted a simple tax code that permitted only a small flat tax on the very wealthy. This was the beginning of the monstrosity of a code that suffocates American liberty today.

We can only wonder how many people in 1894 when they heard the idea of an income tax said, “Bad idea, but it’ll never happen.” How many people hearing in 1895 that all senior citizens would be provided a government pension said, “Great idea, but it’ll never happen.” The Social Security program we have today began in 1896 as the Civil War Pension program. As all entitlement programs are wont to do, it grew and evolved until it was signed into law as the Social Security Act in 1935.

The FairTax bill was introduced in Congress in 1999. It is a big idea and big ideas take time to establish. Gaining momentum is the greatest challenge to the enactment of the FairTax bill, and there is no greater momentum killer than Congress. The only antidote to the failure of Congress to act is to let them know the will of the overwhelming majority of American voters. In just nine years, a grass-roots force of over a million FairTax supporters has been mobilized. FairTax rallies of over 10,000 Americans have been held, and 72 members of Congress have been persuaded to co-sponsor the FairTax bill. Most Americans have not heard of the FairTax bill and most politicians probably have not read the bill. Only by spreading the word on it will the FairTax bill be passed.

Ronald Reagan touched on the greatness of our country when he stated that the American people have always had the capacity “to do whatever needs to be done to preserve this greatest bastion of freedom.” We will do this; we will do it because we must if we are to preserve the greatness that generations before us created. In closing, to those of you out there who say, “great idea, it will never happen,” imagine the dinner table talk when John Kennedy told America we were going to send men to the moon.

THE SAME OLD DIVISIVE POLITICS

An excellent picture of what is going on today with politicians and taxes, submitted by a FairTax Volunteer:

POLITICIANS ONLY GIVE LIP SERVICE TO TAX REFORM

“There you go again.” At a recent presidential debate, this statement made famous by Ronald Reagan, should have been directed to both Senator Obama and Senator Clinton when each of them spoke of changing the tax code to penalize some groups and give relief to others. Both were campaigning on the promise of unifying Americans and changing the way business is done in Washington DC. As far as promoting unity, using changes in the tax code to favor one voting bloc while punishing another is a divisive tactic which has long been a staple policy of the Washington DC establishment. Thus, in one breath they champion unity and change and in their next they propose doing business the same old way. Witness the fact that our congresses have made some 16,000 changes in the tax code in the last 24 years! These changes have simply been a “carrot and stick” approach by republican and democratic legislators to win votes and increase their power to control their constituents. Obama and McCain have proven themselves by their own proposals, viz. change the tax code, to be part of the same old approach to solving America’s problems. If they were sincere they would promote the passage of the FairTax bill. This would unify Americans under a system that would eliminate income taxes and the 16th amendment. This system would fund the government at its current or higher level and be simple, transparent, and fair to every American. We need to demand that all of our candidates and congressmen first educate themselves and their constituents on the FairTax bill and then take a stand on it. All of our legislators need to make a fair and truthful evaluation of the FairTax Bill and stop giving only lip service to tax reform.

Imagine what a boost the American economy would experience if taxpayers were handed a virtual $400-billion-per-year tax cut! This amount of extra money in our pockets would work to grow the economy. Further imagine that even with this virtual tax cut, the government would continue to be funded at its current level. The treasury would merely have to collect federal taxes by a simpler, more transparent, and fairer system than that of our current tax code. The Fair Tax bills before Congress would replace the IRS with just such a system.

To look at the money spent just to comply with the current tax code from the point of view of its purchasing power, I will quote the report of President Bush’s Advisory Panel on Federal Tax Reform published in late 2005. The report states that the money spent by Americans filling out their tax forms would fund “the Department of Homeland Security, the Department of State, NASA, the Department of Housing and Urban Development, the Environmental Protection Agency, the Department of Transportation, the United States Congress, our federal courts, and all of the federal government’s foreign aid.”

This same advisory panel noted that widespread noncompliance costs each honest taxpayer an extra $2000 in taxes yearly. It further notes that due to the arbitrariness of the code increasing your income by 50% can increase your tax burden by 140%. It shows that marginal income tax rates can now rise over 30% for a family earning just $30,000 per year. That’s does not include the 15% payroll tax. A 45% marginal rate on a $30,000 yearly income is happening today! This comes straight from the advisory panel experts. Who in his right mind can prefer the current system to the 23% Fair Tax?

THE COST OF PAYING INCOME TAXES

This came from a FairTax Volunteer - a good read and the hard truth...............

American tax payers bear a financial burden over and above what they pay in federal taxes. This extra burden consists in covering the tax gap and both the time and money spent to comply with the tax code. For 2001 alone the 130 million Americans who filed tax returns paid on average $2,649 extra to fill the gap created by Americans who did not pay their share. This means that the tax bills paid could have been 32.1% LOWER! These 130 million compliant tax payers paid on average $8,265when they should have paid only their fair share of $5,616.

The compliance burden hangs like a huge stone around the necks of all tax payers. It consists of all the time and money wasted on filling out forms, maintaining records, studying tax rules and other tax-related chores. Since 1913 the tax code has grown from 400 pages to over 67,000. In 2005 individuals, businesses, and non-profits spent 6 billion hours and over $265.1 billion to comply with the tax code. The hours spent represent a work force larger than the combined populations of Dallas, Detroit, and Washington DC and more than the total of workers employed in the auto, computer manufacturing, airline manufacturing, and steel industries.

Compliance costs are very regressive, hitting the poorest hardest. Adjusted gross incomes of less than $20,000 pay 5.8% of income while those of over $200,000 pay only 0.45%.

Small businesses bear an unfair burden in compliance costs. As far back as 1991 corporations with under $1 million or less in assets (90% of all corporations) paid $382 in compliance costs for every $100 they paid in income taxes. Corporations with $250 million or more in assets paid about $3 in compliance costs for each $100 paid in income taxes. In 2004 the average American business taxpayer spent $894 per employee on tax compliance activities, but small employers (less than 20 employees) spent $1,304 per employee.

The compliance costs for the private sector are 30 times what the compliance expenses of the IRS are.

The FairTax plan in Congress would slash compliance costs. It would decrease the number of tax filers by 80%. The replacement of the income tax with a national retail sales tax would reduce compliance costs by 95%. This would reduce the cost of doing business and lower the prices of goods while enabling businesses to hire more workers and pay higher wages. It is a cruel hoax when politicians say they are going to raise taxes on businesses. The result of this is to decrease employment and wages and raise the prices businesses charge to the consumers of their products and services.

WHO GETS THE FICA DEDUCTIONS? EMPLOYER OR EMPLOYEE?

Here is some interesting correspondence between a couple of FairTax Volunteers:

I have always been assuming that we would see a 7.5% increase in take home pay with the FairTax due to no personal deductions for Fica and Medicare. The employer would seem a reduction in payroll costs of the same amount for their contribution as well as unemployment.

I see detractors saying that the employees would see a reduction in their wages. Are they considering the employer contribution to be part of the employees "wages" instead of a tax the employer pays?

Daniel P. Alston, DDS, PC


Dan,

I agree with your assessment (we will get a 7.5% increase in take home pay)
at least for the short term after the FairTax goes into effect.

There is no feature of the current FairTax Bill that would compel any other outcome.
Without such a feature both the employer and employee will get to keep their respective portions of FICA and MediCare taxes as well as the Income taxes.

Employers will try and keep the eliminated taxes as additional profits, however market forces will drive them to cut prices the 5% or so that these taxes add to the selling price of their products.

The mythical 21% price deduction that Neal Borts talks about so much relies on
the business keeping all of the tax reductions of both the business and the
employees. That flat out will not happen. We will have more money in our pockets
that we will need to spend to pay the FairTax added on to the slightly lower prices.

It's not a Free Lunch. Most people will end up with nearly identical standards of
living(consumption). Some at the low end of the income scale will benefit some
will pay more. Those that have no savings and are living hand to mouth will benefit
due to the prebate. Those that are living well off of savings and have no income
will likely pay more (the retired Rich). The retired living modestly with some savings will not be affected much due to the gross up in SS benefits and Prebate. Those currently borrowing to finance an extravagant lifestyle (currently tax free) will be hit hard by the FairTax. High earners accumulating wealth by saving and investing will benefit most.

I believe these effects are as they should be protecting the weak, rewarding the builders and punishing the takers.

Ron Woodward, PE
Yorktown, VA

WAKE UP AND SMELL THE TAXES!

Or should I say "Wake up and SEE the taxes?" The following is from a FairTax Volunteer and really lays out the "hidden taxes" we pay in addition to income and payroll taxes. A good eye-opener:

Federal income taxes represent only 42 percent of the total tax burden of U.S. taxpayers. The remainder is hidden, distorting taxpayers’ awareness of their real tax burden and of the true cost of government. Only fundamental tax reform with an emphasis on visibility can ensure a fair tax code that allows taxpayers to evaluate whether they are getting their money’s worth from government.

Despite all the attention given to federal income taxes, they represent only 42 percent of the total tax burden Americans carry each year. There is at least $657.5 billion in additional “hidden” taxes—$2,642 per person—that is not visible to the taxpayers. If more Americans realized that their total tax burden equaled 56 percent of annual personal consumption spending, there might be a second Revolution.

Unlike sales taxes that appear on a cash register receipt, hidden taxes are those charges that are not expressly clear to the taxpayer. One example is fuel. The average price of a gallon of gas last August was$1.49 and 43 cents of that amount represented taxes. That 37% tax rate does not appear on your receipt. In recent years fuel taxes have become the fastest-growing federal tax imposed on middle-income Americans, amounting to $220 a person.

“Sin” taxes are also great sources of revenue. For instance, tax revenues from liquor are many times higher than the total profits of distillers. Nearly half the cost of a six-pack of beer is tax, and cigarette taxes alone will generate $45 billion through fiscal year 2005.

There are also hidden taxes on a litany of products and services ranging from inoculations to firearms to travel expenses. Almost half the cost of an $80 hotel room is tax as is 40 percent of a $159 airline ticket. And the typical monthly utility bill includes 25% tax. With the rise in telecommunications subsidies and Internet commerce, Americans will be feeling—but not necessarily seeing—even more of a tax bite.

Not all taxes are hidden in the cost of goods and services. Some are even more surreptitious. Payroll taxes, including income tax withholding, “employer share,” and unemployment and workers’ compensation taxes not only mask the true burden of paying taxes but also raise the cost of hiring workers, which in turn actually lowers wages and conceivably threatens jobs.

Payroll taxes have increased dramatically since 1937. Today over 90 percent of American workers pay more in payroll taxes (including the “employer share”) than they do in income taxes. Just since 1977, the payroll tax rate has grown by nearly one-third. And when combined with other mandated labor costs such as unemployment insurance and workers’ compensation taxes, the resulting burden actually raises the cost of hiring workers, lowers wages, and can even eliminate jobs.

When taxes are not visible, Americans are unable to evaluate whether they’re getting their money’s worth from the government. While not every hidden tax is responsible for every inequity contained in our current tax code, hidden taxes do contribute significantly to the most complex and inherently unfair system of taxation ever placed upon the American public.

Tax overhaul is imperative, but the fundamental focus of any reform must be on visibility. That’s because a hidden tax is an unknown tax, and an unknown tax is one that cannot be evaluated and judged by those who pay it. In the end, the consumer is left to wonder, How much tax did I really pay? - Read Full Report!

Source: http://www.ipi.org/ipi%5CIPIPublications.nsf/PublicationLookupFullTextPDF/3F31DF6F0D040EE986256AB700630B84/$File/PR160-HiddenTax-FINAL.pdf?OpenElement

This report makes me want to use fowl language!

TAX FREEDOM DAY IN NEW YORK

This letter came from a FairTax Volunteer in New York:

Good job! The Saturday before NY states "Tax Freedom Day", I was on a local station in Geneva, NY, WGVA 1240. Not nearly the number of listeners, however the listeners in this area of the state are fed up with payroll/income taxes, too.

My focus was on CONTROL OF OUR PAYCHECK!! By doing away with payroll taxes, the money is in OUR HANDS FIRST. Who holds the money, holds the power. Politicians have to listen to our positions on crucial issues, or we can stop BUYING and limit the tax revenues!

Prior to and during the American Revolution, the Patriots used "boycotts" to pinch the British. Our government eliminated this power with payroll tax legislation.

Taxes are economic chains of tyranny. If we have a national sales tax, and the federal government raises the tax rate without our support, consumers can reduce their purchases to slow down the flow of taxes to the Treasurey. We don't have that power now.

It is OUR GOVERNMENT, WE THE PEOPLE! The "ruling class of regulators" are out of control. Get rid of payroll/income taxes, give control of money back to the people, and watch how "FairTax Freedom" gives "true power" back to the people of the United States of America.

Spread the word,
Armand Marianetti
FairTax Freedom Volunteer, NY 29

WE NEED THE FAIRTAX NOW!

I obviously am not writing on a daily basis anymore. My husband is ill and my thoughts and deeds lie with him right now. From time to time I will pass on a letter from my correspondence with other FairTax supporters. Also, please read my earlier blogs. They give a simplified version of the FairTax without the extra words that go into padding an article or a book. Fast, easy reading. Feel free to comment.

The following is from a FairTax supporter regarding an article in the newspapers:

Fair Tax proposal

Regarding "Experts predicting rise in tax rates" in the April 10 Huntsville Times: The 2007 Congressional Budget Office analysis says the income tax rate would have to almost double in order to meet Medicare, Medicaid and Social Security requirements through 2050,under the current tax structure.

This is consistent with the report by trustees of the Social Security and Medicare funds.

Medicare will start negative spending in 2008 and be depleted by 2019; corresponding
dates for Social Security are 2017 and 2041, according to the March 26 Huntsville Times article titled "Social Security, Medicare face big challenges."

Further, according to an April 10 Times article, the International Monetary Fund says
America is headed for a recession.

However, since 1999, Congress has failed to act on the Fair Tax bill, HR 25, the best
solution for stimulating the economy and truly fixing our tax code.

The Fair Tax replaces federal income and payroll taxes including: personal income,
estate, gift, capital gains, alternative minimum, Social Security, Medicare,
self-employment and corporate taxes.

It is a single-rate, federal retail sales tax collected only once: at the final point of purchase of new goods and services for personal consumption.

The principles were developed by professional and university economists and accountants based upon $22 million of research, not by politicians.

(See "FairTax: The Truth,"by Neal Boortz and John Linder, or www.FairTax.org.)

I urge each reader to investigate the Fair Tax, come to some conclusions, and take the appropriate action.

Bobby L. Austin,

Huntsville, 35806

Scroll down for the article, please.
http://www.al.com/opinion/huntsvilletimes/index.ssf?/base/opinion/1210151747111100.xml&coll=1

TODAY COULD BE "JUST ANOTHER SPRING DAY"

Have you noticed how few news items there have been in recent days about "Tax day"?
Not a word from any of our presidential candidates, newspaper editors, opinion columnists, nobody!

I know I exagerate, but that is how is seems to me. You would think the presidential canditates would at least have something to say about taxes, but I really didn't expect it. They haven't said or done anything but make our tax situation worse every year.

I realy do miss Mike Huckabee. He was extremely vocal about how broken our income tax system is and he also presented a solution: The FairTax.

By the way, Mike Huckabee has a new website, dedicated to "life, liberty and the pursuit of happiness". Check it out at www.huckpac.com. Hopefully he will continue to make a difference by promoting the FairTax.

I hope you or your accountant finished your taxes on time. Mine didn't. We had to cancel an appointment because of illness, sent our tax info to him, and he ignored us in favor of those who saw him in person. Next year is Turbo-Tax year for me!

Bah, humbug!

96,000 NAMES ON FAIRTAX PETITION!

The following letter is from Ken Hoagland, Communications Director for www.fairtax.org. If you haven't signed the petition yet, please do so today. The FairTax people will be delivering it to Congress on April 15th to show grassroots support for the FairTax and the need to pass it soon:

Dear FairTax supporters:

Wow! We are close! I mean really, REALLY close!


We now have over 96,000 signatures, and need just 4,000 more to hit our target of 100,000 names for our "Pass the FairTax" April 15th petition. Please take a second and help us surpass that goal today.

We know you care about the FairTax, so we'll hope you'll take this last opportunity to add your name now at www.changedc.org and help us hit our 100,000-signature target. As you know, this is a critical time for the FairTax and every voice--especially yours!--counts. So please take a second, make a difference, and help us change DC this tax season.

As you know, we'll be delivering a copy of this petition and 100,000 names to Congress and the leading presidential candidates on April 15th. By signing now, you'll be there too and reminding our elected officials in Washington that demand for the FairTax is growing, and that real change is coming to Washington courtesy of engaged citizens just like you.

Again, thanks for your help during our April 15th "Pass the FairTax" petition. We, literally, could not do this without you!

Sincerely,

Ken Hoagland
Communications Director

HAVE YOU FINISHED YOUR TAXES YET?

Now that we are down to the wire for this April 15th and you probably have good numbers ready, try out Marlene Tobin's FairTax Calculator at www.fairtaxcalculator.org

You can readily determine your effective tax rate.

After that, find the petition and sign that, to show your support for the FairTax.

After that, "read The FairTax Book" or go to www.fairtax.org and read the basics of the FairTax. Or check out my earlier blogs for shorter explanations of the FairTax.

Write or call your Senators and Representatives in Congress to ask their support for the FairTax.

We FairTax supporters need to do all of this, frequently, to show we are serious about Congress changing the tax code to save our economy, social security, medicare and US.

IT’S THREE A.M.

and your phone rings. It’s the IRS demanding your taxes be paid by April 15th. Are you still working on yours? I am. Or at least, my accountant is. We all will have paid approximately $251 billion by the end of the tax year just to figure out and conform to the many IRS rules and regulations.

We ALL have to file taxes this year if we expect to get our “rebate” from the Federal give-away program. That means much more than the estimated $251 billion will be spent just so we can get that “rebate”.

But wait! That rebate could mean something else besides just getting a hand-out. It could prove that the Federal Government is capable of handing out “pre-bates” if the FairTax were enacted. Just think – by the end of this year, they will have it all figured out just how to do this.

And then, all they have to do is vote in the FairTax (HR25 & S1025), already in committee, co-sponsored by over 70 congressmen and just sitting there waiting for the Government to finally do something about our economy.

Go into www.fairtax.org and sign the petition to get this bill moving. We need lots and lots of signatures to show Congress we mean business. Our country won’t be free much longer if we don’t do something about our economic future. And if our country isn’t free, neither will you be free. Think about it.

LET'S GET RID OF THE INCOME TAX MESS

Below is a piece written by the National Communications Director of the FairTax.org. It is rather long, but a good read.


The Income Tax Mess
By
Ken Hoagland

This year American businesses and individual taxpayers will, astoundingly, pay more than $265 billion in tax preparation costs just to comply with our nearly indecipherable 67,500 pages of income tax regulations. Although universally despised, the income tax system has, for all the wrong reasons, strong defenders in Washington.

The income tax is big business in Washington. More than half of all lobby expenditures in any given year are devoted to winning tax code breaks. While Republicans and Democrats disagree on almost everything else, in Congress they are equally enamored of manipulating the tax code. Providing special breaks for favored constituents, punishing political opponents and affecting the behavior of citizens is pursued with equal vigor on both sides of the aisle. The process has created a complex mess.

Warren Buffet and other American millionaires and billionaires will pay a lower tax rate again this year than their secretaries. If you are married, you will pay higher taxes than two people living together. If you continue working while collecting Social Security, your benefits will be taxed. If you are an American business, “embedded” income and payroll tax costs will account for as much as 20 percent of the price of your goods and services.

These costs and the highest corporate tax rate in the world make American products are far less competitive both here and abroad. Our income tax system has actually helped drive more than $12 trillion of American wealth offshore in recent years.

But if you happen to find a job on the House Ways and Means Committee, the Senate Finance Committee or the Joint Committee on Taxation as either a staffer or, better yet, an elected representative, you have a bright future with the tax code. Seven figure signing bonuses are not uncommon when “K St” tax lobby firms are looking for talent and connections. Is it any wonder that taxpayers hear frequent promises that “something must be done” but that the tax code only gets more complex, unfair and dysfunctional?

The difference between what is owed and what is collected by the IRS is about $350 billion and will result in average tax bills being about $2,000 higher than they would be otherwise. Many middle class taxpayers would have been hit with an additional $2,000 tax this year if not for another one-year legislative “patch” of the 1969 error of the tax writing committees in not indexing the Alternative Minimum Tax for inflation. While every eligible taxpayer is looking forward to welcome rebates this year, the money to stimulate our economy is, in fact, borrowed from China and other lender nations. There is a better way.

The most viable alternative to the current system remains the FairTax, a progressive national consumption tax with 70 Congressional co-sponsors and a growing citizen base clamoring for change. Unlike the current system, it taxes the $1.5 trillion underground economy, transforms twelve million illegal immigrants into taxpayers as consumers, and ends the marriage penalty, the corporate tax, the capital gains tax, the inheritance tax and all income and payroll taxes.

It eliminates all federal taxes on the poor, gives the middle class a healthy tax break and taxes billionaire’s spending at an equal level. Every wage earner takes home their entire (federal withholding free) paycheck under the FairTax.

It also provides a far broader base of revenues into the faltering Social Security and Medicare programs. Most experts concede that adoption of the FairTax would stimulate trillions of dollars of foreign investment into the US economy but for predictably self- interested reasons the tax lobby hates the FairTax despite its clear benefits to the nation.

Even without prominent FairTax advocate and Presidential candidate Mike Huckabee on the campaign trail and despite blatant distortions from Washington, the national FairTax campaign continues to grow at the grassroots level. Like all citizen driven reforms, it is building toward the day when enough taxpayers can finally overcome Congress’ self-interest in their favorite plaything, the cause of our annual tax torture and a millstone around the neck of our economy.

EDITORIAL: WHY WE NEED A DIFFERENT TAX

This editorial is from the Albany Democrat Herald in Albany, OR. This editor has obviously read The FairTax Book and is ready for a change. He brings up a very good point: Why are the Presidential candidates not addressing our flawed income tax system? Now is the time!

Editorial: Why we need a different tax.

The tax-filing season is revving up to its nail-biting conclusion in less than three weeks. So you would think voters would demand that federal candidates, especially for president, speak about their plans for relieving Americans of this annual ordeal.

But the voters don’t ask, and if the candidates have any such plans, they are keeping mum. No one who actually reads the federal tax instructions can believe that sane people wrote the laws on which they are based. Maybe the trouble is that more people don’t read them, which they can avoid doing by filing a simplified return or having their returns done by a pro.

So one idea for reform would be a requirement that every voter read at least the instructions for Form 1040 and pass a test. After all, the voters are responsible for sending to Congress the people who are responsible for the laws — either by writing them or refusing to change them — that form the basis of the instructions.

But that’s assuming that the present system is worth keeping, which plainly it is not. It’s not worth keeping not only because it demands that you file a return and go through all kinds of contortions, in terms of record keeping and computations, in order to meet the requirements of the law. If that doesn’t amount to involuntary servitude, name something that does.

The system also leads to wide discrepancies in what people owe, owing to peculiar circumstances. Savings are required for long-term economic health, but savings are taxed, and so are any earnings from savings. And perhaps worst of all, even though from some people it confiscates enormous sums, overall the federal tax system does not raise nearly enough money to cover the outlays that Congress continues to approve.

We need two things to reset the balance. Even though the idea has not been seriously mentioned in a decade or longer, we need a requirement that government spending be limited to roughly the same as income every year. And we need a tax system that collects the necessary revenue without the need for filing returns.

Whether we call it a sales tax or a value-added tax, or even a “fair tax,” some universal consumption tax like that would fill the bill. (hh)

EXEMPT FOOD & MEDICINE FROM FAIRTAX? GET REAL!

A FairTax volunteer e-mailed this article - a must-read................................

Why not just exempt food and medicine from the tax? Wouldn’t that be fair and simple?

Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit.

Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.

Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped.

OBAMA NEEDS THE FAIRTAX

I listened to Obama's speech in Oregon today and determined, with the "new social order" he is touting, that he will need the FairTax in order to keep his constituents. Otherwise, everyone will go broke just trying to pay for all his largesse.

He plans to "give" us all health care. Who does he think will be paying for it? WE WILL! Remember, Corporations do not pay taxes - we do, in the form of higher prices. And where in the Constitution does it say "life, liberty and pursuit of health"?

He plans to "give" all students $4,000 (is it per year or per term? I forget) to help with their higher education. Who does he think will be paying for it? WE WILL! Oh sure, the students will be "required" to do community service, but it is still a huge money drain. Let the prison inmates do the community service and let the students work for their education.

He plans to have our troops home by 2009. Who does he think will be suffering for it? WE WILL! With more lives lost when the Al Queda come to our shores.

He plans to "fix" Darfur. Who does he think will be paying for it? WE WILL! Obama will pull our troops out of Iraq and put them right into Darfur, mark my words. It is all a matter of whose war it is. Remember "Wag the Dog"?

I could go on and on, but you get the picture. You don't get something for nothing. Obama is planning to take charge of all of your dollars, not just your tax dollars. He is planning on re-distributing the wealth of this country - not to you, not to me, but to control our every thought and deed. BE AFRAID - BE VERY AFRAID!

NOW LET'S SEE WHAT THE FAIRTAX WOULD DO FOR OBAMA - AND FOR US!

First, health care. With the FairTax, the working people would be able to afford their own health care. After all, they will have 100% of their income to choose the kind of health care they want. The people who don't want health care will not be forced to have it. The poor people who work will have more take-home pay to pay for it. The poor people on welfare will be taken care of with their prebate checks and social services already in place. The older people on Social Security will still be covered by Medicare, low-cost supplemental insurance and prescription drug coverage. That's called Freedom, my friends - Freedom of Choice. If the Government takes your money to spend as "they" see fit, you are no longer free.

Next comes education. Nobody owes you a living. Nobody owes you an education beyond high school. If Obama allows the FairTax, parents can educate their own children without paying a FairTax, which means they will be able to afford to educate their children the way they want to, with 100% of their income. Also, if the students work to help with their education, they will be able to save more money or spend less in student loans. That's called Freedom, my friends - Freedom of Choice. If the Government takes your money to spend as "they" see fit, you are no longer free.

The next two items - The Iraq War and Darfur - have nothing to do with the FairTax. However, it has everything to do with Freedom. We freed the Iraqi's and now we are trying to keep them free long enough to stand on their own two feet. By pulling the rug out from under them (bringing home the troops in 2009), would surely spell defeat for us and defeat for the Iraqis. And would it make us safer? NO! We would have them bombing our malls and our sports stadiums and our schools because by bringing home the troops too soon will bring the enemy right along after them. The troops are fighting for our freedom, my friends - Freedom of Choice.

Saving Darfur sounds very humane - and it is. However, saving Iraq is not? I don't get it. Saddam Houssain tortured and killed his own people, just like what is happening in Darfur. We can't save the whole world. UNLESS - well, I can't help thinking that the FAIRTAX would bring companies back to our shores, bring new money to our shores, bring off-shore money back to our shores, bring JOBS back to our shores. Everyone would prosper from this - not just big business. I have never understood why people are so against big business, when that is where your paycheck is coming from. Why bite the hand that feeds you? Freedom, my Friends - Freedom of Choice.

With the FairTax, you will be free to save, to invest, to educate yourself, to choose the type of health insurance you want, not what the government decides to dole out to you. You will also be free to spend your money how YOU see fit, not how the Government sees fit for you. It's called Freedom, my friends - Freedom of Choice.

THIS COMMENT GETS FRONT PAGE TREATMENT

Ashford Schwall has his ducks in a row. He has his priorities straight. I was so impressed with his commentary, I simply had to make sure nobody missed it. Thank you, Mr. Schwall!

Ashford Schwall has left a new comment on your post "WILL THE FAIR TAX CREATE AN UNDERGROUND ECONOMY?":

The underground economy is everything from Wendy Waitress not reporting all of her tips to Mr. Cash Money, the drug dealer. Let’s play a little game. Let’s look at both under the income tax and under the FairTax. We will start with a look into the life Mr. Cash Money under the income tax.

Mr. Cash Money sells “medicinal items” for cash on the street and takes a “commission” from working ladies. He even provides a “protection service”! Do we think Mr. Cash Money files a tax return every year? Any year? Don’t hold your breath.

Poof, now we are in FairTax land. Mr. Cash Money needs a new suit. Nothing used for this guy! Bam, FairTax paid. Mr. Cash Money needs some groceries, Bam, FairTax paid. Mr. Cash Money needs to pay his rent, Bam, FairTax paid. Mr. Cash Money needs to………..you get the picture, Bam, FairTax paid.

Do you think Mr. Cash Money will expose himself to the Gov’t by applying for the prebate? Again, Don’t hold your breath.

Now let’s look at Wendy Waitress under the income tax. She has been good and filed her taxes, just did not report all of her tips. A bad tax plan made a technical criminal out of a good person. She has worked hard but was never able to get ahead. Her overtime is even taxed at a higher rate.

Poof, now we are FairTax land. Wendy applies for and gets the prebate. She now takes all her tips and put them into savings which are no longer taxed. Her overtime is not taxed. She is frugal and buys used items where possible which are not taxed.

She takes a night course which is not taxed. She gets a better job which is not taxed. Now she is able to buy that new car, dress, shoes or whatever she has always wanted, and yes, it is taxed. But so what, thanks to the FairTax, Wendy has been able to get over that hump of sustenance to success.

So in the grand scheme of things…….. No, the Underground Economy would not be a problem. Perhaps taxing “income tax” can not be more fair. Is taxing income the answer? Where is “written” that income must be taxed to fund our collective gov’t needs?

It has been that way since 1913. Prior to that, various excise taxes were used. Why must we tax income? Some how point number two of the “Ten points of communism” found in the Communist Manifesto has become the norm. Why would we want to?

What are we taxing when we tax income? We tax work. We tax prosperity. We tax upward mobility. We tax success. Many economists believe that if you tax something more, you get less of it.

Do we really want less work, less prosperity, less upward mobility, less productivity and less success?

Ashford Schwall

LEGAL PROSTITUTION - NO! FAIRTAX - YES!

There has been a lot of talk in recent days about Eliot Spitzer, NY Gov., and his "call girl ring". I heard today a journalist on TV saying it was time we made prostitution legal. Can you believe that? He said we could then get them to pay taxes.

How stupid his comment when he can have his cake and eat it too. With the FairTax, he can keep prostitution illegal as it should be and take their tax money anyway, every time they purchase goods or services.

And while we're at it, let's get some tax money out of those other underground businesses. Let the drug dealers help us with our taxes, every time they purchase goods or services.

Let the illegal aliens help us with our taxes, every time they purchase goods or services.

Let the "under-the-table" business dealers help us with our taxes, every time they purchase goods and services.

And how about tapping the tourist industry. We pay their taxes when we visit their country - let them help us with our taxes, every time they purchase our goods or services.

Whenever I receive a plea for money from a congressman or a presidential candidate, I write back (using their stamp, natch) and tell them when they publicly endorse the FairTax, then I will donate money to their campaign. So far, no takers.

Don't you think it's time our Congress quit worrying about their campaigns and started worrying about our economy? All of these points made above can help to relieve our tax burden. Tell Congress to pass the FairTax (HR25 & S1025)

WE STAND FOR THE FAIRTAX - VOTE FOR IT!

I received an e-mail reminding me that Mike Gravel, the only Democrat Candidate for President who supports the FairTax, is still in the running. You would never know it by watching and listening to the various forms of Media.

For you Democrats out there whose primaries have not yet been held, you still have a chance to promote the FairTax by voting for Mike Gravel. Here are a couple of youtube sites of Mike Gravel selling the FairTax: http://www.youtube.com/watch?v=E3bY_UNCY_I & http://www.youtube.com/watch?v=UAyY_8hDdfY .

To contribute to his campaign, go to his website: http://www.gravel2008.us/.

It is really discouraging, being from Oregon, to have to wait until everything is decided and then the "powers that be" allow us to vote. Our votes counts for nothing, so we might as well use our votes in protest of the system and to let the public know what we stand for.

We stand for the FairTax - Vote for it!

LISTEN TO NEAL BOORTZ' WEBINAR TODAY

Sent to me by a FairTax Volunteer:

News/Talk 750 WSB's Neal Boortz is hosting a FREE internet seminar, or Webinar, beginning today, March 6, to explain and answer questions about the FairTax. I just listened to it and it is absolutely EXCELLENT! It is like watching a Powerpoint Presentation with NealBoortz explaining the FairTax.

You can watch/listen to it anytime. It lasts about an hour. I am sending a special e-mail announcement about this WEBINAR out to all of our local FairTax supporters. For more details go to http://wsbradio.com/ads/fairtax_webinar.html or just follow the links from the Home page at www.fairtax.org.

FAIRTAX TRULY NON-PARTISAN

Below is a letter from Joshua Pritikin, a FairTax Volunteer AND a Democrat. We need more people like him, who takes the time to check out the facts and is not afraid to go with them. If you would like to receive all of the FairTax correspondence, just sign the FairTax petition at www.fairtax.org and sign up as a FairTax volunteer. Here is his letter:

In response to three letters titled "The FairTax and the $50m jet" on 02 Mar 2008: As a registered Democrat, I was pleased to see other fellow Democrats taking up consideration of the FairTax proposal. I prefer the Democratic position on social issues, but the Republicans are ahead of us on questions of taxation.

I realize this may be difficult to understand. It only became clear to me after running the numbers myself. When it comes to questions of public tax policy, I used to avoid the discussion and stick my head in the ground.

The complexity of the current system is mind numbing. But that is where the advantage of the FairTax shows most vividly. It is simple to understand and explain. I was not surprised that letters in response to Prof. Kotlifoff were negative. After all, the topic is taxation. Some diligent study is required.

Both Mr. Laswick and Mr. Depperman pointed out that a wealthy individual who spends little money would pay little tax. They contrasted this case with a middle class earner who must spend (and be taxed) on all of his income. There are at least three additional points to consider.

Firstly, the hypothetical middle class earner will be better off under the FairTax than he is now. He will pay less tax because the sum of the income tax, social security, and medicare taxes amount to more than the 23% FairTax less the prebate. You can verify this with a calculator.

Secondly, while the wealthy keep money in the bank, that money is lowering the interest rate on your mortgage.

Thirdly, this year or next year, the wealthy can afford to buy a new house, new yacht, or new airplane and the prebate is a vanishing offset against a 23% tax on millions of dollars.

Give the FairTax a fair chance. Dust the cobwebs off your calculator. Run the numbers yourself. It is not as difficult as you might expect.--

Make April 15 just another day, visit http://fairtax.org

SIGN HERE TO PASS THE FAIRTAX NOW

I am sharing a letter from FairTax headquarters for anyone wishing to sign a special petition to pass the FairTax now. They need lots of signatures so read, click and sign. Thanks, Bobbie

Dear FairTax supporters: Our march to deliver 100,000 signatures for our "Pass the FairTax" petition to Congress and the leading presidential candidates has begun, and the response has been intense. In just one week since our launch we've gathered over 30,000 names--including Gov. Mike Huckabee who's signing the petition tonight in Houston!

That's a fine catch, but we still need an equally important one...yours! Take a moment now and join over 30,000 fellow FairTax supporters who've already signed the "Pass the FairTax" petition to send a powerful message to Washington this April 15th!

As we said before, the presidential campaign season is full of talk about changing Washington. Great idea, so let's remind Congress and the leading presidential candidates that real reform in DC starts with bringing the FairTax to reality. Your support here is critical so please help us change Washington by signing now.

We are continuing to spread the FairTax cause to new prospects. We're running our "Change DC" full-page newspaper ads in Texas and Ohio--in advance of their March 4 primaries. That media buy is something supporters like you made happen with your generous financial contributions. Thank you!

The clock is ticking. So please join over 30,000 of your fellow FairTax supporters who've already raised their voice to help us change DC for the better now!

Sincerely, Ken Hoagland
Communications Director

If you would prefer sending a check or credit card contribution by mail, please download and print our contribution form here.

DOES THE FAIRTAX TAX RENTALS?

I have read a lot of erroneous comments on my blog and today I am re-running an earlier blog explaining the FairTax and rental housing. I am sure I will have many more erroneous comments as a result of this, but I think the neophytes of the FairTax need to know the truth.

One comment disregards the 23% sales tax and calls it a 40% sales tax and has even pushed it up to 100% tax at times. Now this is an hysterical disregard for the truth as the FairTax is written.

If you don't accept the truth, nothing adds up and it becomes a frustrating attempt to distort the truth. If you don't like the FairTax, fine, but don't distort the facts.

As you know, both owner-occupied and renter-occupied housing is taxable under the FairTax. With owner-occupied housing (new), the tax is collected up front at time of sale. With renter-occupied housing (new or used) the monthly rent is taxed as it is collected by the landlord.

Renter-occupied housing under the present Income tax is paid with after-tax dollars. Renter-occupied housing under the FairTax is paid with pre-tax dollars, plus there will be a pre-bate added to the renters income to stretch his/her dollar further.

Since investment property is not taxed under the FairTax, but the rents are taxed, the rental property will not be subject to double taxation.

An example in the FairTax Research information compared the Income Tax structure with the FairTax structure using $500 in monthly rents. With a 15% income tax bracket, the renter would have to earn $647 in order to pay his income taxes and payroll taxes and have $500 left to pay his rent.

Under the FairTax structure, the $500 rent plus the 23% sales tax amounts to $649, $2 more than the income tax in order to cover his rent. HOWEVER, in comes the pre-bate to the rescue! And that renter has only had to use $2 of his monthly pre-bate to pay his rent, leaving the remainder to pay the taxes on his medical bills, dental bills, groceries, etc.

I hope that answers any questions you might have. If not, go to FairTax.org for more information. Read the FairTax bill (HR25 or S1025) yourself. If you don't like what you read, then continue to mire yourself in the 60,000+ pages of the present income tax system and continue to watch our country rot economically.

WHAT'S THIS ALL ABOUT?

I just ran across this website while reading letters from FairTax volunteers and checked it out. It is a new site without much information, but they seem to have some good ideas, among them the FairTax. They expressed concern that the FairTax bill would not eliminate the 16th Amendment.

I think too much store is put into the elimination of the 16th Amendment. The 16th Amendment allows for an income tax, but does not require it. Let's pass the FairTax bill (HR25 & S1025) first, then enjoy its benefits, and finally, after a 5 year trial period of the FairTax, repeal the 16th Amendment.

I don't know if this website is the beginning of a new political party or a spin-off of conservative Republicans, but it will be interesting to keep an eye on it and see how it evolves.

http://falconparty.com/?p=1

OPPONENTS OF THE FAIR TAX - PUT UP OR SHUT UP

The following was sent to me by a FairTax Volunteer. It exposes the naysayers for what they are: Do Nothings!

William Gale, The Brookings Institution
Dale Jorgenson, Harvard University
James Poterba, MIT, and member of the President's Tax Reform Panel
Lindy Paul, former chief economist of Joint Committee on Taxation
Bruce Bartlett, conservative columnist and former economist with the Reagan administration
Rich Lowry - National Review
Jay Bookman - Atlanta Journal Constitution
Allen Buckley - Attorney and Libertarian candidate for U.S. Senate
John Suggs -- Ed itor, Creative Loafing Magazine
Robert McIntyre -- Citizens for Tax Justice
Any editor of the Wall Street Journal editorial page

That's an interesting and comprehensive list of FT opponents. I could not help but wonder what the outcome would be if you could get them (plus the author of the article) in a room together and asked them to agree on a tax reform approach which would address

1. the AMT
2. the spiral of complexity and higher compliance costs
3. the crisis in SS and Medicare
4. the trade deficit
5. the federal budget deficit
6. etc, etc

I know that the author has his own version of tax reform which abolishes corporate taxes (except for payroll), the AMT and makes up the revenue somewhere else. That proposal has one supporter that I am aware of - its author. It does not address the issues listed above in any meaningful way.

Then you have Dr Jorgenson, who has his own version of tax reform he calls "the efficient taxation of income" if memory serves. I would be willing to bet that after selling his books for many years and promoting it constantly, he has not more than 100 supporters.

Dr Poterba was on the President's panel which produced a report which was ignored by the White House which commissioned it, the congress which would have to enact it, and the general public. That proposal also basically ignored most of the economic issues enumerated above and contradicted its own interim report, the title of which was " America Needs a Better Tax System". That report was nothing less than a scathing indictment of the current system; it was a summarization of the input they received from the American public.

Jay Bookman is on the editorial board of a newspaper which regularly publishes articles about the economic challenges listed above but consistently fails to address solutions, other than imploring legislators to "do something". That newspaper has opposed the FT, even though it is the most comprehensive and effective way to address these issues.

The WSJ is in Steve Forbes' hip pocket and continues to tout "the flat tax" as if there were a single version of a flat tax that flat taxers rally around. They ignore the fact that "the flat tax" has been around for decades now and is on life support politically. Their only bill in the house is the Burgess bill, which is not revenue neutral and therefore will never be seriously considered by congress and has a grand total of six (6) co-sponsors. "The flat tax", of course, does not address the economic challenges listed above nearly as effectively or comprehensively as does the FT, regardless of which flavor of flat tax one supports.

I could keep going, but here is the bottom line for me. Unless and until the critics of the FT come up with a better way to approach these economic challenges that we face, I will continue to support it. If you put all these guys in a room and told them they could not come out until they reached a consensus, they would all die in that room.

WHY A FAIRTAX WILL HAPPEN

Below is a reply to the naysayers of the FairTax, from a FairTax Volunteer:

All of the interested parties opposing the FairTax can broadly be defined as " special interests". They represent a small, but highly motivated, number of opponents. Our obligation is to inform and facilitate the wishes of the vast majority of our citizens who cherish liberty, freedom of action, and fairness.

We always recognized the challenge overcoming the special interests. I suspect that there was a higher percentage of people who were comfortable living under the King of England, who doubted the ability of an army of citizen/patriots to defeat the mighty British, and knew we were under financed. If our founders had followed the easy, conventional course, no telling what the world would look like today.

To secure our future, we must recognize the need for reform and act on a course to transform the republic around the principles that are the foundation on which our country is built.I believe the FairTax is transformational.

It seems to me if we acted on the advice of naysayers and special interests polio would have never been controlled and we would continue to do research but never cure cancer. Just imagine how many existing and potential jobs were lost because of the Salk Vaccine. How many jobs will be lost when cancer is cured?

All advances and transformations lead to "retooling" our economy/work force. It is part of "creative destruction. Keep your hopes and effort focused on the goal- it is worth the effort!!!

Respectfully,Leo

IS THE 23% FAIRTAX RATE REALLY TOO HIGH?

This is an excellent dissertation about the % of taxes paid with the FairTax - and yes, there really are embedded taxes. The following article comes from Tom Wright with the AFFT org.:

I just did my taxes, and after all of my deductions and exemptions, I only paid 14% of my income in taxes. Why is the FairTax a good deal for me?

We get this question all of the time…and it is a good one. Sadly, it is also proof of the problem with our tax code today. The problem is that you believe that you are only paying 14% in taxes…and you have forgotten about the payroll taxes that you pay and the corporate income taxes built into the price of everything that you buy.

Remember, the FairTax is revenue neutral, which means that it is not a tax cut. The FairTax expects that as Americans we will pay just as much in taxes tomorrow as we do today. The only differences will be that (a) we’ll know how much we are paying because it will be visible and (b) we’ll free the economy from the constraints of the income tax so that a rising economic tide can lift all boats.

Let’s imagine that you earn $100,000 (the round number, while high, will make the math easier)…and imagine that after all of your deductions, exemptions and credits, your income tax bill was $14,000, or 14% of your total income.

Now, remember that you also must pay 7.65% for payroll taxes, which is another $7,650. Also, remember that your employer must pay another 7.65% of your salary in payroll taxes (or, if you’re self-employed, you must pay this amount directly). That is another $7,650. Adding these amounts together, you will have paid $15,300 in payroll taxes.

Suddenly, even though you thought that you were only paying $14,000, or 14%, we now see that you’re paying $29,300, or 29%, and we haven’t even calculated the hidden taxes in the price of everything that you buy. This is why the FairTax is a better deal for you.

Today, taxes are hidden so you don’t really know how much you’re paying. Plus, today, for every dollar handed out to someone in a special tax break, tax credit, or tax exemption, the tax bill of everyone else must rise by that dollar. The FairTax will eliminate all of these special preferences, and when those who today receive those preferences start to pay more, you can begin to pay less.

"WEBINAR" ON MARCH 6TH - COME ONE, COME ALL

Neal Boortz will be hosting a Fair Tax "Webinar" on March 6th. Please check regularly on his website: <http://boortz.com/> For details for this nationwide event. You can submit any questions you still have for Neal to answer at the Webinar by sending your question to: Wsb750.promotions3@wsbradio.com

Please make the questions direct and to the point or they won't be considered. And make sure you send this email to all of your friends in your address book that support the Fair Tax or if they still have reservation and need some convincing.

IT'S IN THE BOOK! FAIRTAX: THE TRUTH

I guess you guys are too young to remember the song "It's in the Book", but I grew up with it and we loved it and quoted it constantly. Whenever we threw out a "fact" for consideration, we would say for emphasis: "It's in the book!" Now we have a new FairTax book and it just popped right back into my head.

This new book "FairTax: The Truth" answers the critics. It is written by the same guys who wrote The FairTax Book, John Linder and Neal Boortz. I have just begun to read it so cannot give you a book report; however, I picked up one thing so far:

The FairTax vision is "a collection of fundamental economic principles". "What are those principles? In short words, here's what we think the American tax system should be:

• SIMPLE
• FAIR
• VOLUNTARY
• TRANSPARENT
• BORDER NEUTRAL
• INDUSTRY NEUTRAL
• GOOD FOR SOCIAL SECURITY AND MEDICARE"

It's in the book - pick it up and read it.

IS THE FAIRTAX PROPELLING HUCKABEE OR IS HUCKABEE PROPELLING THE FAIRTAX?

And do we care? The Fairtax is getting lots of publicity these days from Mike Huckabee and his presidential campaign. To his credit, Huckabee speaks about the FairTax every chance he gets. And he seems to be getting rewarded at the voting boothes. He is surprising (and distressing) a lot of people in high places - from the President on down to the talk show hosts.

I put the talk show hosts at the bottom of my list because of their disgusting behaviour lately. I am so tired of them talking against our only candidates in the Republican party left standing. Do you realize why these 3 are left standing? Because of the people voting their own minds and hearts. That should count for something.

I realize the FairTax is a non-partisan issue and I wish the Democrats would step up and help us more in their support of it. Wouldn't it be wonderful to have Obama or Hillary come out publicly in favor of the FairTax? Or how about this? Wouldn't it be wonderful if John McCain came out publicly in favor of the FairTax?

If they want my support for President, it would be real nice if they did. Meanwhile, I am sticking with Mike Huckabee as long as he is sticking with the FairTax.

DARE TO BE FAIR

Congressman John Linder, the Sponsor of HR25 the Fair Tax in the House of Representatives, has begun a program to get a feel for the actual support of the HR25 the Fair Tax. Here is his message:

“We need to show that the issue of fundamental tax reform is critical to the economic growth of this nation, and I want to bring a million names to Washington, D.C. to make that point. Please sign on today to show your support for the passage of HR25 to create a simple and fair tax system.”

Go to this website:
http://www.johnlinder.com/citizen_co_sponsor.asp
and add your name as a citizen co-sponsor of the FairTax.

Be sure to pass this information along to all of the supporters (including spouses) that you know and remember to tell all new supporters that you bring on board.

WILL THE FAIR TAX CREATE AN UNDERGROUND ECONOMY?

That’s one of the big arguments against the FairTax. How could it be any worse than what we have today? Today we have under the table and illegal transactions. Today we have a hidden economy of illegal aliens. Today we have the prostitutes, pimps, drug dealers and just plain ordinary citizens who conduct transactions on a cash-only basis so they don’t have to pay income taxes.

Under the FairTax, the drug dealer will be paying his taxes when he spends his money. Illegal aliens will also pay taxes as they consume; however only legal households will receive the monthly prebate check to offset expenditures up to the poverty level.

The FairTax is so simple that some fear the public will understand it. It is so visible to the public that some fear the public will learn their true tax burden. It taxes us so directly that it eliminates the ability to buy and sell tax favors, so some that benefit from this practice hate it.

The FairTax would do more than any other legislation contemplated or possible to revive our economy, reverse our balance of trade, stop the fall in the value of the US dollar, save our industrial base and return to us the freedoms we have lost due to the income tax.

The FairTax eliminates the buying and selling of tax favors by public officials and lobbyists that today corrupts our political system. By this means it transfers power from Washington back to citizens where our Founders intended it to reside.

Everyone hates the IRS, except the tax accountants. Nobody can understand the IRS tax code - even the tax accountants. I say it's time to get rid of the IRS - and the tax accountants. Let them get re-trained for another type of work like the loggers in small towns all over the Northwest did after the environmentalists shut down their business.

Below is a quote from a FairTax volunteer and a link to an article about the IRS increasing their audits against taxpayers making over $100,000. Big Brother is watching you! With the FairTax, you wouldn't have to be under constant scrutiny. You would simply pay the sales tax as part of your purchases and thumb your nose at the IRS on your way out the door. Here is the quote:

"You can bet your tax return is wrong, no matter how hard you try to get it right, because NO one can properly understand the complex code. Won't it be nice when the IRS is gone?"

http://online.wsj.com/article/SB120165118416126911.html?mod=djemtct

MORE ON FAIRTAX BENEFITS FOR SENIORS

I have received a number of comments on my past blogs recently. I am happy to see people going back and reading the earlier ones. I hate to keep saying the same things over and over, but sometimes I bring one up out of the past instead of writing a whole new one on the same subject.

Recent comments from readers have been noted on “Some Comments Answered”, “Senior Impact”, and “Does the FairTax Tax Rentals?”. Please go back and read those blogs together with their comments. “Ellen” especially, has made some very intelligent observations and seems to approve of the FairTax in spite of some downers for Seniors on Social Security.

Seniors have had to pay into Social Security all their working years and then, under the FairTax, would be taxed when they spend it, Ellen says. Well, that’s true, and the prebate will make up for a lot of that. There are some good points:

1. The FairTax protects future SS benefits by paying it out of the general fund, generated by
a national sales tax.

2. The Prebate.

3. The FairTax repeals the taxation of SS benefits and adjusts SS indexing to protect Seniors.

4. No more compliance costs for those Seniors who use tax preparers.

5. The FairTax does not tax used goods, which a lot of low-income Seniors take advantage of:
used cars, used clothing, garage sales, etc.

6. The FairTax will eliminate embedded taxes in manufacturers’, services’ and retailers’
costs, allowing them to lower retail prices.

7. No more taxes on IRA’s and other tax-deferred plans. (Most Seniors do not have Roth
IRA’s where “after tax” money was used)

8. The FairTax will end gift taxes, estate taxes and capital gains taxes.

9. The FairTax generates an economic boom, easing future budget pressure on Seniors’
entitlements.

10. The FairTax ensures your grandchildren have the same opportunity you did.

I think number 10 is the best reason of all and the reason I am writing this blog. I don’t want my children and grandchildren to have to worry about taxes all their lives. I don’t want to see SS benefits dry up just when my children get to the age when they can receive them.

Paying as you go is the way to go. So what if you have to pay a sales tax with your SS benefits that have already been taxed? It will still be better than being taxed with hidden taxes you don’t even know about because they are invisible.

The benefits to Seniors far outweigh the shortfalls for Seniors.

Best Comparison of 23% vs. 30%

This letter was written to Ms. Strassel (check out the link below) by a FairTax Volunteer. It gives the best comparison of the income tax vs. the FairTax inclusive and exclusive rates. It really puts things into perspective:

Ms. Strassel,

While you are correct about Mr. "Bush's Economic Surrender" (1/25/'08) your discussion of the proposed tinkering with the federal tax code by three of the four prominent Republican candidates for President leaves a lot to be desired.
http://online.wsj.com/article/SB120122065042715307.html?mod=opinion_main_commentaries

You left out the only sensible total replacement of the tax code, the FairTax, proposed by Governor Huckabee. It will end the very tilted playing field of world trade which favors our trading partners and results in our industries relocating to better tax platforms. It will also end the waste of over $265 billion every year to wasteful compliance costs.

If the Journal insists on calling the FairTax inclusive rate of 23% an actual rate of 30% (exclusive), then be fair by saying that the present tax code's 35% (inclusive) rate is an actual 54% (exclusive). And, oh yes, add to that 54% the payroll tax of 15.3% (inclusive) or an actual rate of 18% (exclusive). Let's see, 54% plus 18% equals 62%; and you complain about 30%?

Bill SpillaneCalifornia State Director
(volunteer)fairtax.org
Manhattan Beach, CA

CAN YOU SAY "QUADRUPLE TAXATION"?

The following letter was sent by one of our FairTax volunteers to Mr. Adler regarding his article on the FairTax. It is a very good eye-opener on our present income taxes. I linked to the article by Mr. Adler at the bottom of this letter:

How convenient that Mr. Adler has chosen to overlook the many instances of "double taxation" in the present income tax code and all the savings that will accrue to his"seniors" under the FairTax. Just for starters: the earnings that one accrues that are subject to the payroll tax are taxed FOUR TIMES today.

1) The 15.3% of earnings up to about $100,000 is taken as a tax (by the way, that's an "inclusive" 15.3%; it would be 18% if calculated as an "exclusive" sales tax.)

2) That same money already sent to the government, is now income taxed (FICA taxes are not deductible).

3) When the now "after tax" income is used to buy a US made good or service: the buyer will be paying the embedded taxes (profits and payroll taxes) in the product.

4) After retirement, up to 85% of the "earned" social security income will be taxed. In addition, today, any taxpayer paying the embedded taxes in a US product or service is not only paying with previously income taxed money, but he or she is paying state and local sales taxes on embedded taxes.

Is that double taxation enough? Furthermore, if the retiree has any money in savings that are here complained about, after FairTax enactment, there will be no more taxes on those earnings whether interest,dividends, capital gains, or death. This critique of Mr. Adlers critique is not all inclusive.

People like Mr. Adler must have another agenda; anyone who researches the FairTax with an open mind and wants the best for the US economy, and each of us, is bound to support the FairTax. http://www.townhall.com/columnists/HankAdler/2008/01/23/fairtax_double_taxation,_an_admission?voted=1

A GREAT SUPPORTER OF THE FAIRTAX

Below is a link to an article by Kevin Geary, a business man and coach of the Karate USA competition team. The link is to his web site where he explains the FairTax in short, easily understandable terms and with great accuracy.

Instead of my usual diatribe, please use this link and enjoy:

http://changeyourtree.com/blog/2008/01/21/i-support-the-fair-tax-and-why-you-should-too/

SOME COMMENTS ANSWERED

I can see by the comments I have been receiving that a lot of you out there do not understand, or do not want to accept, the concept of embedded taxes. The non-accepting will not accept the fact that prices will go down (experts say as much as 22%) when the FairTax is enacted. You do not trust business to lower their prices when their costs of doing business go down. You do not trust the consumers to insist on it. You do not trust free enterprise to enact price wars until the cost of goods goes down to acceptable prices.

My questions = Do you trust the IRS and Government to continue to manipulate your income? Do you think prices will remain the same under the present system? Do you think your taxes will remain the same?

No! Your Government gets more intrusive every day and you just sit back and take it. Prices keep going up, jobs keep leaving the country and you just sit back and say “I can’t do anything about it”. Taxes keep going up, government hand-outs keep increasing and you just sit back and say “Let the Government take care of me”.

This is just sick. Get a grip. And take control of your own lives and spend your money when and where you want to. The FairTax will allow this to happen.

When we say you will be able to take home 100% of your income, we don’t mean that you will not have to pay taxes like you did with the 15% payroll and SS taxes plus however much is withheld every month to pay your income taxes. We just mean you will have control of where and when you spend that money and it will be your choice of saving it (non-taxable, mind you) or spending it and being taxed.

You think about that amount. You pay 15% in payroll taxes & Social Security payments. Then on top of that, you pay 15% to 35% (whatever tax bracket you are in) as income taxes. So if you gross $50,000 per year, 15% payroll & SS amounts to $7,500. Then you are probably in the 15% tax bracket (purely an estimate – I’m not a CPA), that will take another $7,500 out of your paycheck. You will have $15,000 to spend in taxes or to save for your own enjoyment. Now if my figures are right, you will have to spend $65,217 in order to be taxed $15,000. How can that be? Well, it can’t. You’re just going to have to save some of that tax money the Government has been taking out of your pocket, because there is no way you can spend this amount in order to spend all you have saved. And don’t come back on me and nitpick my figures. I know I didn’t allow for deductions, but I am merely giving you an example. Apply it to your own paycheck and tax figures.

And quit worrying about nursing home patients who are on Medicaid. When they go through their income, nursing home patients can apply for and receive Medicaid. That means they spend the rest of their lives on the Government dole. In other words, they don’t have to pay any money; therefore no taxes. It’s the Government who pays the nursing home and with the FairTax, the sales tax. Now I am sure the Government is not going to allow the nursing homes to keep their high prices when all other business are removing the embedded taxes from their pricing.

And quit worrying about the Government. They seem to be able to take care of themselves quite nicely. They may even encourage the removal of embedded taxes in goods and services to keep their prices down. It’s time the Government started working for us and with us.

FAIR TAX VS. FLAT TAX

The following is a commentary from a FairTax Volunteer on an article in the Business & Media Institute . It gives a really good comparison of the FairTax and the Flat Tax.


Excerpts:
Mitchell: "One of the problems is that advocates of tax reform are divided. This split is particularly frustrating since the flat tax and sales tax are virtually identical. Both would junk the current system. Both would restore fairness by taxing at one low rate. Both would eliminate all forms of double taxation, and both would wipe out special-interest loopholes."

FairTaxer: Identical? Ridiculous; one is an income tax similar to the Reagan 1986 reform and ripe for Congressional meddling to the max. The flat(income)tax continues the payroll tax and taxing corporations, which only pass those costs to people, usually the customer in the form of higher prices. It will NOT get rid of the IRS primarily because figuring out what "income" is happens to be at the heart of the IRS problem. More could be said about "identical".

Mitchell: "Yet this would require repeal of the 16th Amendment. Would it be possible to obtain the required two-thirds vote in both houses of Congress and ratification from 38 state legislatures? Unlikely."

FairTaxer: Yes, indeed, "unlikely". Just like the last 27 Amendments to the Constitution. Indeed, it's unlikely that we'll ever get women the right to vote! Oh! We did that! Well, we'll never prohibit alcohol sales in the US! Oh, we did that?! Well if we prohibit alcohol, we'll never go back to allowing it again! Oh! We did that, too?! He has a low opinion of the American people.

FairTaxer contd.: Both wipe out double taxation? Ridiculous again; the corporate tax of the flat(income)tax, along with the employer's portion of the payroll tax, will be folded into prices and the person with after tax income will be paying the "embedded" taxes on those products when making a purchase of US made products and services (double taxation). In addition, the latter flaws make the flat (income) tax identical to the present incometax in making US products and services more expensive than countries with no embedded taxes and who use a VAT.

Fairtaxer contd.: "Both wipe out special interest loopholes"? Perhaps on day one of the flat(income)tax, but on day two, the tax lobbyists in Washington D.C. will be out in droves to manipulate the corporate portion of the code, just like they do now while spraying campaign contributions to the four winds.

Mitchell: "Not so much for policy reasons, but rather because of practical concerns. Simply stated, the flat tax and sales tax are both theoretically attractive, but only the flat tax seems to be politically feasible."

FairTaxer: True only if you concede that the inferior flat (income) tax is more amenable to Congress people who see the opportunity for manipulating the corporate portion of the code in order to raise campaign funds. False if you believe that a proper airing of the features of both tax proposals will result in the American people demanding the FairTax.

Mitchell: "Moreover, advocates of the sales tax correctly insist that it must be accompanied by complete, irreversible abolition of the income tax in order to prevent politicians from pulling a bait-and-switch and trying to impose both a sales tax and an income tax."

FairTaxer: He's right that some misguided FairTax advocates have mistakenly said that repeal of the 16th Amendment must accompany, precede, or closely follow enactment of the FairTax in order to avoid having both a sales tax and an income tax. But he's totally in error in many ways here: TODAY, we have both an income tax AND a national sales tax in effect!

The income tax is obvious, but the sales tax is the "embedded" taxes in the prices of all US made goods and services (but not foreign made). We want to get rid of one of them. Furthermore, enactment of the FairTax, by law, eliminates the income tax and the IRS. The 16th Amendment merely ALLOWS an income tax, not requires it. Once the FairTax is enacted, we will proceed with steps to repeal the 16th. If it is not repealed, the Congress would have to start all over from scratch to enact an additional income tax.

If they try it, they will all get thrown out of office. If Congress succeeds in that diabolical endeavor, we will be back to today with an income tax and a sales tax. If they pass a flat(income)tax, we will have both an income tax and, with the embedded taxes, a sales tax, as well. Furthermore, the FaiTax has about 72 co-sponsors in the House and five in Senate. The flat(income) tax isn't even up to bat yet.

Go FairTax; get it right the first time.

SENIOR IMPACT

I am re-running an earlier posting to put some perspective on the plight of Senior Citizens when the FairTax is enacted. Some think they will be paying more in sales taxes than they should have to, since they had to pay taxes on all that money they earned all these years previously.

I am getting tired of the distorted views on the 23% vs. 30%, the poor Seniors being double taxed, uncorroborated statistics, etc. without looking at the whole picture. Prices will go down.

For those of you who prefer the present income tax situation, know that you are being taxed over and over and over (embedded taxes are a fact). Compliance costs are astronomical, no matter what the figure.

Following is a copy of my earlier blog:

I am going to begin today with “The impact of the FairTax on Seniors”, a “white paper” from www.fairtax.org. I will just give you a feeling for what is in this document and if you wish to learn more, go into their website and poke on the “research button” to find the various “white papers”.

The FairTax will ensure that the Social Security and Medicare programs that are so important to Seniors become stable again, no longer a threat to “go broke” in a few years if taxes are not raised.

The FairTax rebate zeros the retail taxation of necessities, up to the poverty-level, for Seniors. Some Seniors don’t even spend over the poverty level, since they have accumulated “things” over a lifetime. Other Seniors will welcome the extra money that a prebate would bring them.

The FairTax does not tax used goods, which gives Seniors a choice of whether they wish to buy new goods and be taxed or used goods with no tax added. (We all will have this choice)

The FairTax ends all record keeping and income tax filings, which means no more large bills from Tax Preparers or Accountants. (These people will be happy to find other jobs helping you invest and grow your extra dollars saved by the FairTax)

The FairTax will reduce manufacturers’, services’, and retailers’ costs, (remember the embedded taxes?) allowing them to lower costs to seniors (and the rest of us).

Seniors will pay no more taxes on IRAs and other tax-deferred plans.

The FairTax ends gift and estate taxes so Seniors will have the satisfaction of knowing their hard-earned money will go to their heirs instead of the IRS. Wheeee!

With the FairTax, Seniors can sell their homes and pay no capital gains taxes.

The FairTax will generate an economic boom, easing future budget pressure on Seniors’ entitlements.

The FairTax ensures your grandchildren will be able to keep 100% of their income and they can decide when to spend it and what to spend it on. They will not have the IRS looking over their shoulder at every step of their careers, taking money here and grabbing money there.

HOCUS-POCUS FAIRTAX? NOT HARDLY!

Boy, the FairTax is sure getting a chewing-up and spitting-out by the media, the talk show hosts and the Pundits (whatever they are). They are not giving it a fair shake. They need to learn what it is about before they start ripping it apart.

Following is a letter written by one of our FairTax Volunteers in reply to one of these so-called know-it-alls. It is long, but a good read. I high-lighted my favorite paragraph in red - at least read that:


Hocus-pocus FairTax?? Not Hardly

FairTax Act is one of the most researched public policy issues in History, is cosponsored by 72 members of Congress and endorsed by 5 presidential candidates.

In a commentary in Friday, January 11th’s newspaper, Brian J. O’Connor appeared to come to conclusions about the FairTax that often befall individuals that have a less than full understanding of the FairTax. This is easily overcome by reading the proposed legislation and looking at the research that has been done on the FairTax.

With over $22 million spent on research, the FairTax is likely the most researched public policy issue in history. This research was done by some of America’s best economists at premier universities and think tanks by individuals from the political left and right. This research is readily available at the FairTax website: http://www.fairtax.org/. I’ll refer to some of that research in responding to Mr. O’Connor’s comments.

He states that the FairTax rate is 30%, which is true, but to compare it to the income tax it is replacing then we would have to say a person at a 20% income tax rate would really be at a 26% rate, because he is buying things with after tax dollars. Under the FairTax we would be buying things with pretax dollars as we’d be receiving all of our earnings (no income and payroll taxes). To compare the FairTax to the income tax the FairTax rate should be presented as a 23% rate.

The important issue is whether we will be at a higher or lower tax rate. A 2006 study by Boston University economists Dr. Laurence J. Kotlikoff and Dr. David Rapson concluded that the FairTax benefits all income groups. Of 42 household types (classified by income, marital status and age), all have lower average remaining lifetime tax rates under the FairTax than they would experience under the current tax system, and those with lower spending levels benefiting most.

Mr. O’Connor states that economists like this kind of consumption tax but “almost anyone who can do math hates the FairTax”. Like most economists, most CPA’s know only too well that our current tax system is broken and impossible to comply with. I would guess that most mathematicians would like the FairTax after reading the bill.

He quotes a former Treasury official, Bruce Bartlett who said, ”It took me almost a month to understand this crackpot proposal.” Bruce Bartlett’s statements about the FairTax have been thoroughly discredited. His efforts to misrepresent the FairTax are not taken seriously by most economists due to their lack of scholarly content and truth. Economists will have different opinions, but almost all agree that income taxes depress the economy and consumption (sales) taxes grow the economy. It is not rocket science. When you penalize productive behavior you get less of it.

Claims are made by some that the FairTax will create an underground economy. Isn't this what we have today with all the under the table and illegal transactions, and hidden economy of illegal aliens. Under the FairTax the drug dealer on the corner will be paying his taxes when he spends his money. Illegal aliens will also pay taxes as they consume, however, only legal households will receive the monthly “prebate” check each month to offset expenditures up to the poverty level.

The FairTax is so simple that some fear the public will understand it. It is so visible to the public that some fear the public will learn their true tax burden. It taxes us so directly that it eliminates the ability to buy and sell tax favors, so some that benefit from this practice hate it.

Numerous studies confirm that on average ~22% of the retail price of all US produced goods and services are “business taxes” imbedded in the prices. As Dr. Alan Greenspan lectured Congress, "only people pay taxes." Taxes, like any other cost of doing business, are added to the cost of products and are passed on to consumers. This deceptive practice of hiding our taxes in prices is resulting in the exportation of our companies and jobs rather than our products, as it places American business and labor at a ~20% competitive disadvantage.

By eliminating personal and business income taxes the FairTax removes taxes (and $500 billion in tax compliance costs) from the prices of American produced goods and services and allows American labor and business to compete with foreign competitors on a level playing field.

The FairTax would do more than any other legislation contemplated or possible to revive our economy, reverse our balance of trade, stop the fall in the value of the US dollar, save our industrial base (that is necessary for our national defense) and return to us the freedoms we have lost due to the income tax.

By eliminating the ruse of “business” taxes people will see, on every sales receipt, their true tax burden for the first time in generations. This visibility of taxes is the self-limiting factor on taxation and size and reach of government that was intended by our Founding Fathers.

The FairTax eliminates the buying and selling of tax favors by public officials and lobbyists that today corrupts our political system. By this means it transfers power from Washington back to citizens where our Founders intended it to reside.

Roger Buchholtz

WELL THANK GOODNESS, THAT'S OVER WITH

What a drag, this political process. But necessary. Another primary over with. The media thinks it's a circus and treats it as such. Every candidate has been raked over the coals and stomped on by the media and the talk show hosts.

I want to emphasize today that the FairTax does not belong to any one party - it belongs to each and every one of us Americans. It will be the American people who succeed in getting the FairTax passed, with no help from either the media or the talk show hosts.

Only one political candidate who favors the FairTax is still standing: Mike Huckabee. He talks about the FairTax whenever the opportunity arises and the media and the talk show hosts treat it like it was his idea, therefore a stupid idea.

For your information, there is a bill before congress now (HR25 & S1025) just waiting to come out of committee. Will it ever happen? Well, it's up to us to start ragging on our Senators and Representatives to get it passed NOW, before our country implodes.

Any candidate who stands up FOR the FairTax has my vote, and that includes Mike Huckabee. For those who want to put their money where their mouth is, go to http://huckabeemomentum.com and pledge a $25 donation ONLY if 10,000 people do the same.

I don't approve of everything Mike Huckabee stands for, but I have never approved of everything any candidate stands for. I have learned after many years that you can't have everything, so pick what is important to you and work towards that end.

IS RUSH LOSING HIS "GROOVE"?

The following is from a FairTax volunteer, concerned about Rush's' brush-off on the FairTax and Mike Huckabee:


I've been increasingly disappointed in Rush Limbaugh lately. I tried calling the show last week, but couldn't get through. So I sent the following...
From: Greg Dutton, AZ Volunteer State Director, FairTax
'ElRushbo@eibnet.com'Subject: Your "eternal optimism"... compromised
Dear Rush, the "eternal optimist",

I've been listening to you almost daily for the past 7 years. In that time you have helped transform me into a solid and well-informed conservative, a critical thinker, and you've inspired me to get involved in my community and politics. I don't know how many times I've heard you say that we should reach high for our goals and we can accomplish great things. I have always taken it to heart.

Which is why I have to ask you to PLEASE stop saying, "The FairTax will never happen."

For you to shoot down the FairTax this way goes against every grain of your "eternal optimism."

I'm 43 years old, I work full-time and my wife and I own two businesses. I barely have time to volunteer for anything, let alone a transformational national bill. In spite of that, I became a volunteer for the FairTax, and I am now the VOLUNTEER State Director for Arizona. I and the team of grassroots volunteers that we've developed here in Arizona all work to gain ground for the FairTax. We suffer the naysayers and tredge on in spite of them. We speak in front of audiences and debate the merits of the FairTax vs. the flat tax with marked determination and perseverence. We are gaining ground, maybe slowly, but surely.

We now have 72 co-sponsors in Congress (two from Arizona), which is at least 7 times the support that the flat tax has, and hundreds of thousands of volunteer supporters around the country. Each day, we add a new brick to our foundation of support.

While it's one thing for us to win a supporter, it's a-whole-'nother thing for us to get someone on board to actually DO something. When volunteers hear you say, "It will never happen," it cuts like a knife. It kills enthusiasm and willingness to devote time. It tells us that you think we're wasting our energy and our time, and that we should just pack up and go home. Instead of doing or saying anything positive, you're tearing down. You've adopted a defeatist attitude. You have the opposite affect of the "Midas touch" by turning some of our bricks into sand. You undermine our efforts to build something that we know is right for our country and right for Conservatism.

Perhaps worse yet, you contradict so many things you stand for as an Reagan conservative and "eternal optimist."

We're not asking for your endorsement of the FairTax. We're not asking you to recant anything you've said. We're not asking you to debate the merits of the FairTax. We're only asking you to stop saying that something good and positive for our country will never happen, and start saying what CAN happen, if.... We ask you to get back to "possibility thinking."

Rush, we value your insight and analysis. We and our supporters listen to you and look up to you. We do love you, Rush. Which is why we feel so strongly about this.

Sincerely,Greg Dutton


Let's hope Rush gets a good rest and a new start in the New Year. In fact, let's hope this for all of us! It's going to be a long year, but by the time it is over with, I hope every voter out there knows and understands the FairTax. It is up to us to educate the candidates and vote for the ones who "get it".