Actions for Freedom

Conversations on more than 50 actions to expand freedom in the United States

 

Are you Pro-IRS or Pro-FairTax?

Do you want token tax reform or tax replacement[1]?

Do you want the Flat Tax that would make moderate changes to the present system[2] and keep the IRS or the FairTax[3] that would eliminate the IRS and the present corrupt system?

Do you want a system that taxes the poor or one that untaxes the poor? The FairTax will send every lawful family, including yours, a monthly electronic payment in the amount necessary to spend at the poverty level. A family of four will receive $611 per month.

Do you want a tax on what you earn or on what you spend[4]?

Do you want the payroll tax[5] or would you rather take home all your earnings?

Do you like filing with the IRS or would you prefer to have retailers collect your tax, send it to the state with any state sales tax and have your state remit the national tax to the Treasury?

Is it better to tax wealth creation or wealth depletion? To tax work, wages, income, savings[6] and investment or tax consumption?

Is it better to keep records to file with the IRS or to have retailers collect a federal sales tax the same way they collect sales taxes in 45 states with 98% of the population[7]? No individual or business would have any dealings with the IRS.

Is it better to try to simplify the present system in which the IRS has said evasion and errors cause a tax gap[8] of $450 billion and the costs to comply are another $431 billion or to replace the system?

Does the government need to know how much you make and where or could that just as well be private?

Should we continue our present system that taxes exports making them less competitive in world markets and allows imports to come in tax free or vice versa, should we grow American jobs by making our exports tax free and tax imported goods and services made with foreign labor?

Should our tax system give corporations incentives:

  • to create jobs overseas or in the U.S.?
  • to locate headquarters overseas or in the U.S.?
  • to raise capital from debt rather than equity or from a balance of debt and equity[9]?
  • to keep $2 trillion of foreign earnings overseas or to repatriate many of those earnings to invest more profitably in creating jobs in the U.S.[10]?

Is it better for families and corporations to make distorted economic decisions to get the best after-tax effect or to just make the best economic decisions[11]?

Is it better that 47% of filers pay zero income tax or that every consumer in the U.S. have skin in the game and all of us be in the same boat wanting the government to control costs to keep the tax rate as low as possible[12]?

Do you want a system that gives employment to thousands of tax lobbyists[13] in Washington working against your interests or one that is so simple and fair they won’t be able to game the tax code?

Do you want to continue to empower the Washington cartel or have more personal freedom with the FairTax?

Do you think pastors and charities should restrict what they say so their churches and organizations won’t lose tax-exempt recognition or should they also enjoy full rights to free speech guaranteed by the founders in the Constitution before the 16th Amendment authorized the income tax[14]?

Do you prefer having the government tax the money you earn and contribute to charity or would you rather contribute earnings that haven’t been taxed?[15]

Should our tax system discourage or encourage Americans to save and invest, creating more jobs and a higher standard of living for everyone?

Overall, are you Pro-IRS[16] or Pro-FairTax?


[1] The FairTax replaces federal payroll, personal income, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes. Instead, when you buy something new for $1.00, $0.23 of that would be the FairTax.

[2] The present tax code and regulations are 75,000 pages. They change more than once a day.

[3] The Fair Tax Act (HR25/S155) is 131 pages.

[4] The FairTax is a 23% national sales tax on the final use and consumption of new goods and services.

[5] The 15.3% payroll tax, half from you and half from your employer, is the largest tax that 80% of Americans pay. Removing payroll and other corporate taxes would decrease product costs and increase exports.

[6] With the FairTax, saving what you earn is like putting money in one of the 15 different tax-advantaged savings accounts such as the tax-free 401(k). Later, when you spend money from savings, you pay the FairTax.

[7] The IRS would be completely defunded three years after passage of the Fair Tax Act (HR25/S155).

[8] In 2010, the IRS assessed 37,055,841 Americans $28.1 billion in civil penalties.

[9] The FairTax reduces business risk by leveling the playing field between debt and equity.

[10] Also, foreign corporations would flock to invest in the U.S.

[11] Some taxes destroy more economic value than the revenue they collect. The most efficient taxes to collect are repeated real property taxes, then consumption taxes, then income taxes, then capital, then corporate taxes. Small businesses and the poor pay proportionately more to comply with the present tax code. It costs about 30% of income tax revenues to collect the income tax. It costs individuals $5 to pay $4 of income tax to the federal government and it costs businesses $143 to pay $100 of income tax to the federal government.

[12] Treating all Americans the same will reduce opportunities for politicians to divide us. The Constitution requires that taxes be “uniform.”

[13] Most crony capitalism, such as wind and solar power subsidies, occurs in the tax code.

[14] The distinction between for-profit and nonprofit corporations would disappear.

[15]  Neither payroll nor purchases by a qualified non-profit or religious organization "for business purposes" would be taxed.

[16] To eliminate the IRS we have to eliminate the taxes collected by the IRS. States would send the FairTax directly to the Treasury. 

Views: 162

Tags: Fair, FairTax, Flat, IRS, Tax

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Comment by Donald Vail on October 3, 2015 at 5:40pm

All good questions Jim....but.

Karl was a knucklehead.  

Not a great starting point for a tax system.

Comment by Jim McIntosh on September 15, 2015 at 3:59pm

I'm trying to understand. I don't know if this is the place for it, but can you explain these points:

Do you want the Flat Tax that would make moderate changes to the present system[2] and keep the IRS or the FairTax[3]that would eliminate the IRS and the present corrupt system?

What's wrong with the current progressive tax system (neither flat tax nor a VAT)? From each according to their ability, to each according to their need. 

Do you want a system that taxes the poor or one that untaxes the poor? The FairTax will send every lawful family, including yours, a monthly electronic payment in the amount necessary to spend at the poverty level. A family of four will receive $611 per month.

What on earth is a "lawful family"? Does each adult and each child receive a monthly payment or not? Or do only those married by the state and not those living together and not single persons?

Do you want a tax on what you earn or on what you spend[4]?

A tax on earnings seems more just because the rich spend just a portion of their income while the poor have to spend all of theirs. Eliminating the estate tax, just lets the rich pass more of these growing savings on to their descendants. This would seem to create greater wealth disparity in the county. With a VAT, as you describe it, the rich would get richer and the poor would get poorer.

(Maybe if the VAT were coupled with, say, a 75% or more inheritance tax, then it would make sense (i.e., tax at spending or at death).)

Would the VAT be applied to all purchases, or would food and medical expenses be exempt?

Do you like filing with the IRS or would you prefer to have retailers collect your tax, send it to the state with any state sales tax and have your state remit the national tax to the Treasury?

Now, employers collect it. Either way, it gets collected.

With a VAT, would small businesses, such as accountants, consultants and doctors' offices have to start collecting the VAT and send it to the state? Who would monitor that they do so? Wouldn't this be a bookkeeping nightmare for these small businesses?

Do you think pastors and charities should restrict what they say so their churches and organizations won’t lose tax-exempt recognition or should they also enjoy full rights to free speech guaranteed by the founders in the Constitution before the 16thAmendment authorized the income tax[14]?

Would anyone who says they are a church be able to avoid the VAT? Who would verify the true nature of a church if there's no IRS?

[4] The FairTax is a 23% national sales tax on the final use and consumption of new goods and services.

So doctor's offices, sole proprietorships, consultants, etc. would now have to undertake the task of collecting the government's money.

[11] Some taxes destroy more economic value than the revenue they collect. The most efficient taxes to collect are repeated real property taxes, then consumption taxes, then income taxes, then capital, then corporate taxes. Small businesses and the poor pay proportionately more to comply with the present tax code. It costs about 30% of income tax revenues to collect the income tax. It costs individuals $5 to pay $4 of income tax to the federal government and it costs businesses $143 to pay $100 of income tax to the federal government.

Those small businesses are going to have to increase their fees significantly in order to cover their cost of collecting the tax. Doesn't this give the advantage to the giant corporations which can collect it more efficiently? Doesn't a VAT hurt small businesses?

[14] The distinction between for-profit and nonprofit corporations would disappear.

[15]  Neither payroll nor purchases by a qualified non-profit or religious organization "for business purposes" would be taxed.

Numbers 14 and 15 are inconsistent. The distinction would disappear, except that one doesn't pay the VAT? And, again, without the IRS, who determines what is a "qualified non-profit or religious organization"? The individual states? Would, say a Moslem or Wiccan organization be able to avoid the VAT in one state but have to pay it in another?

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