FairTax and IRS Scandal
by BEVERLY MARTIN
Jun 17, 2014 | 2111 views | 9 9 comments | 8 8 recommendations | email to a friend | print
Americans, are you slaves? Do you realize you consent to politicians using the IRS as their weapon to silence you, control your spending, while legally taking your wealth?

Why isn't there a sea-to-shining-sea battle-cry against tyranny of politicians able to silence millions of Americans with the power of IRS, punishing opposition while skirting the law thus remaining unaccountable?

The existence of the IRS is a freedom issue. Repeal the 16th Amendment. Pass the FairTaxHR25 which defunds and disbands the IRS. As long as the IRS exists, politicians will pretend outrage at situations such as what we now face, but they will also continue using the IRS to silence opposition while reaping huge financial and political gains via lobbyist and loopholes.

The economic benefits of the FairTax over a Flat tax or income tax have been proven. The taxpayer's bill for the investigation of the IRS is staggering. However, economics issues of a tax structur2e must not be the focus of our attention.We as a nation must ensure that our children and grandchildren have the freedom of speech and private ownership now denied under the income tax.

Pass the FairTax. Repeal the 16th. Or live in shame for tolerating tyranny.

fairtaxbev@gmail.com

Comments
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Mark Curran
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October 03, 2014
Kinda funny that Fairtax folks have all these slogans, but don't seem eager, or even willing, to show what they tax.

Oh yeah, they have a retail sales tax. That's part of it -- a small part.

The retail sales tax isn't the problem. The problem are the 2 trillion dollars (out of 3.5 trillion) of other taxes they don't tell you about.

Without these massive other taxes, as President Bush Tax Panel showed in 2005, Fairtax rate would be 89%, not 23%.

Oh, you pay all the taxes, not just the retail sales tax. The other taxes include massive taxes on every city county and state, on all operational expenditures, including wage, pension and capital investment expenditures.

NYC for example, over 800 million dollars just in wage, pension and operational expenditure tax.

Chicago, over 700 million. Dallas, 700 million.

Keokuk Iowa, over 15 million.

Counties too -- Cook County IL, over 600 million. LA County in CA, over 1 billion dollars.

And Fairtax never told anyone about it. It's in their math, in fact, it's the only way their math "adds up". But they never told anyone. YOu have to read their fine print very closely, and their math, as President Bush Tax Panel did.

Cleverly, in the fine print, Fairtax documents "assume' city county and states will "raise their tax rates" sufficiently to pay these massive (2 trillion dollars massive) other taxes.

But there is more. Much more.

As soon as Fairtax spokesmen explain why they have these massive taxes in the fine print, but don't tell supporters about them, maybe we can get somewhere.

Joe Mumford
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June 19, 2014
First of all.. You will need to correct WASHINGTON DC.. Because until that is done.

The bigger the government, the skinner the people!

That is where the problem lies,, Until the simpletons in this country figure that out. The government will continue to grow and grow.

Hell, the irs tax. is not a drop in the bucket in what the American public pay in taxes.. But We do not need a TAX AGENCY IN CHARGE OF OUR HEALTH CARE! Wait a minute,, it is not health care! It is a tax law!

That would be the reason to disband the irs!

But the real propaganda is this. NOT ENOUGH PEOPLE IN THIS COUNTRY GIVE A SHIT!, and that is why this country is in the shape it is in. And that is the whole truth!
Stephen Eldridge
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June 18, 2014
The FT machine keeps churning out its propaganda.

The FT does NOT repeal the 16th Amendment.

The FT does NOT really eli minate the "IRS".

Future economic benefits cannot possibly be "PROVEN".

The “Fair Tax” is a Fraud – we need a 10% “Tithe” Tax!

I am a retired lifetime tax consulting professional (JD, LLM in Taxation, CPA, co-author of a 3 volume tax treatise, lecturer), with no financial stake in ANY tax system. This only a brief summary - for supporting details of all comments, call Stephen C. Eldridge tel. 423-532-7337.

The so-called “Fair Tax” (“FT”) is a fraud – it is MORE WEALTH REDISTRIBUTION, AND a financial SCAM.

In their own words, FT proudly advertises that it is MORE PROGRESSIVE (yes, it is MORE WELFARE).

Of prime importance, the Prebate is NOT a real refund of FT paid as it appears to be. It is a new $600B ENTITLEMENT, which would have ALL Americans receiving a substantial monthly check from the federal govt – a very bad idea for those of us who are not Socialists. We simply cannot afford yet another huge entitlement that will only be increased in the future.

The FT and the Prebate would leave the working poor making no contribution at all to funding the federal budget and paying nothing even for their personal SS/Medi benefits. The FT and the Prebate FT then extend tax welfare to the non-working poor – and also take the next Progressive Cloward-Piven step towards giving SS/Medi to all regardless of work, by removing the tax “penalty” for reporting SS Wages, thereby “inviting” the fraudulent reporting of SS Wages (as noted by other authors).

The Prebate is apparently calculated to merely repay the poor for any FT they pay, but actually would pay them far MORE than any FT they might pay (by “assuming” the poor spend MORE than the underlying HHS Poverty Guidelines and also by “assuming” they will pay FT on ALL of their purchases, but they WON’T) - and FT also provides free SS/Medi to the working (and some non-working) poor.

FT’ers today still market the original FT lie that while workers get a large raise, retail prices will remain the same as before the FT, - but that just cannot be true. FT is merely supposed to changes the method of paying the same total dollars of tax we pay today, so that if you get a big raise, prices must go up by the same total dollar amount (except for a minor amount for savings in compliance costs) . Retail prices will RISE by 25-30%. Initially, FT-retained Harvard Prof. Dale Jorgenson who first said prices would come down by 22% “embedded taxes” and go up $23 (30% x $78) for FT. He later explained his 22% “assumed” that employees surrender their “raises” - thus his true maximum price decline is about 7% (i.e., a 21% price increase after adding 30% FT). AFFT’s Chief Economist , Karen Walby then said the decline would be 12.5%, but when one corrects her incorrect figures, they agree with Jorgenson (whose 7% decline translates to at least a 21 % price increase). Note that their figures assume that 100% of their maximum potential decline will occur. Most of that 7% is the employer’s share of SS/Medi taxes which may be paid out in higher wages. Generously assuming that as much as ½ of the 7% MAXIMUM is passed on to customers translates into a 25-30%% price increase after adding 30% FT.

The FT produces a 40-70% in-your-face retail sales tax that would spark a taxpayer rebellion that would destroy our retail-sales-sensitive economy. 40% = 30% (not 23%) FT e.g., 10% S/L sales tax and 70% is the rate needed at a sample 30% FT evasion rate (the FT incredibly assumes ZERO evasion and ZERO intentional reduction in spending and ZERO migration from new to used goods).

IN ADDITION to that 40-70% tax, the FT contains several HIDDEN TAXES (notwithstanding that FT’ers fraudulently tell you that “the FT is fully transparent - just look at your receipt and you will see all of the FT you will pay”). 1) FT’s 30% rate is really 42 %; the 12 % is hidden by having fed S/L govts paying FT (which is likely unconstitutional) – ultimately, they must get that money from you. 2) The initial 30% rate is 1-5% short and that plus any other revenue shortfall will have to be made up by raising more FT (or a NEW Income Tax), 3) The fed budget will rise for a) higher SS benefits and higher COLA’s payable to all federal retirees, both induced by FT’s price increase of nearly 30%, and for b) fraudulent new SS benefits invited by FT’s removal of the “tax penalty” for reporting SS Wages (as noted by other independent authors ) – more FT (or a NEW Income Tax) we be required to fund these.

The NEW IRS (i.e., the STAA) may well be far worse, far more invasive than today’s IRS (the buyer is liable to pay FT and get/show a receipt – The STAA may audit consumers) – also we may well have to file an “Annual FT Summary”.

As also noted by others, the FT leaves us more vulnerable to winding up with BOTH a NEW Income Tax AND the FT. Congress will repeal the FT’s laughable Sunset Clause and (with the 16th Amendment surely still firmly in place) enact a NEW Income Tax which I believe is Congress’ true ultimate objective – i.e., to be able to grab even more of our money to redistribute to those who will vote for them and contribute to their campaigns.

Seniors will start to pay for SS/Medi again and some will pay a 2nd-3rd tax on their earnings. Many middle class seniors will pay more FT than they would have paid in Income Tax and many will lose purchasing power because of, 1) the nearly 30% price increases and 2) the higher S/L & federal taxes required because they must pay FT and can only get the funds from us, and 3) higher federal taxes due to higher SS & pension COLA’s and fraudulent SS benefits.

The FT promises grand economic benefits which are all UNPREDICTABLE - mere Hype & Change. The FT employs marketing hype and hyperbole, making countless unsupportable claims.

What we need is a Flat Income Tax with No Deductions, No Exemptions, No Credits and a 10% rate, with business income taxed to shareholders on a very simple basis (i.e., no corporate income tax) - See H.R. 1040 (which has been included in Paul Ryan’s new budget), but with changes as noted here (IRS is neutered, 1 page tax filing, everyone pays - more evolutionary). Call your representatives in Congress and let them know that this is what you want.
Glen Terrell
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June 18, 2014
Mr. Eldridge simply does not write the truth. Readers of his writing concerning the FairTax should be very wary.
Stephen Eldridge
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June 18, 2014
READERS.

Please note that Mt. terrell does not explain exactly what it is that I wrote that is not true - that is because he cannot explain what is not true about the truth.

I have read many of his 1 liner tweets and found many outright lies (e.g., the FT trades 22% embedded taxes for 23% Ft, so prices remain the same).
Stephen Eldridge
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June 18, 2014
The only tools Mr. Terrell can employ are his 1 line tweets of false marketing propaganda aimed at the FT's unsophisticated target audience and to us the Saul Alinsky tactic of denigrating people like me who can provide expose the FT's fatal flaws using professional analyses.
Jim Bennett
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June 29, 2014
For a reply go to:

https://docs.google.com/file/d/0B6dVmCK2Z_e0dEoxS2ZSTk4yY2s/edit

Kenneth Smith
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June 18, 2014
I couldn't agree more with what Beverly Martin has expressed in this outstanding letter. I hope her plea is heard from coast to coast. Folks, we can make this paradigm shift happen! We must end the IRS, stop the tyranny, pass the Fair Tax (HR-25, S-122), and repeal the 16th amendment. Make your voices heard, make a difference. Log onto www.popvox.com and express your views and be heard. Do it now!!!! Before it's too late for our kids and grandkids.
Glen Terrell
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June 18, 2014
I agree with both Beverly Martin and Mr. Smith.

Citizens of the US are like the proverbial frog in an ever warming pot of water. The water temperature is just short of lethal to our republic.

Citizens, act now while there is still time.