fair tax
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A quick look at some myths of the so called fair tax.
MYTH:
The Fair Tax would replace federal personal, gift, estate, capital gains, alternative minimum, earned income, Social Security/Medicare, self-employment, and corporate taxes with a national sales tax.
TRUTH:
The proposed Fair Tax cannot guarantee even one of the above stated attractions because the proposed legislation,
H.R.25, if adopted by a current Congress and signed into law by the President, is nothing more that a list of suggestions to all future Congresses, and would not bind any future Congress` hands. Future Congresses would be free to amend H.R. 25 and manipulate it to accommodate the politically influential just as is now done with the current system, and could even bring back income taxation on top of the consumption tax which H.R. 25 would establish..
Contrary to the myth of what the supporters of H.R. 25 allege it will do, one way to achieve its featured attractions is by a constitutional amendment stating
The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money.
If adopted, such an amendment to our constitution would bring us back to our founding fathers` original tax plan and accomplish the featured attractions of H.R. 25 by binding the hands of Congress and precluding a tax calculated from any lawfully realized money, which H.R. 25 does not do because it is not binding law upon a future Congress.
By working to add to our Constitution the above stated words, rather than working to approve the meaningless lip service contained in the H.R. 25 legislation, the stated objects of H.R. 25 are achieved and working people as well as business and industry will no longer suffer under the burdens of income taxation____ no more income tax paper work, no more filing income tax returns under the penalty of perjury, no more income tax audits, no more manipulation of an ``income`` tax system which favors one class over another, and, the ability of folks in government to use the income tax system as a weapon against political enemies is removed!
As Thomas Jefferson warned us ``
In matters of Power, let no more be heard of confidence in men, but bind him down from mischief by the chains of the Constitution``
Put the wording in the Constitution!
ANOTHER POPULAR MYTH ABOUT THE SO CALLED FAIR TAX
NEAL BOORTZ wrote in an article titled
ANSWERING A FAIR TAX QUESTION:
``It doesn't matter that paying taxes will be voluntary under the Fair Tax plan. It doesn't matter that nobody pays the retail sales tax on the basic necessities of life.``
Contrary to the above lie, the truth is, all consumers pay the tax on the basic necessities of life under H.R.25. The authors of H.R. 25 have concocted what they call a
``family consumption allowance``___ a monthly government check given to each American household putting them on the public dole, which is intended to be earmarked by each consumer to offset taxes
paid on the basic necessities of life!
In essence, the so called fair tax rations tax-free basic necessities of life, and rations them by the size of the family consumption allowance allotted to each family. The family consumption allowance also gives
Senator Ted Socialist Kennedy a very valuable tool which he and his socialist disciples in Congress will promise to increase during election time to buy millions of votes to remain in power, just as these socialists now do with the minimum wage, social security payments, aid to families with dependant children, Pell Grants, and you name it from the shopping list of government give-away- programs not recognized by our Constitution but created by Congress___ the only difference with H.R. 25 is, its family consumption allowance promises to extend the tentacles of socialism to every American household with a monthly government subsistence check, making the majority of American households dependent upon a monthly government check!
Were we not warned by Hamilton in Federalist Paper 79 that a:
POWER OVER A MAN`s SUBSISTENCE AMOUNTS TO A POWER OVER HIS WILL?
The American people do not need to be made dependent upon a monthly government check. If the authors of H.R. 25 were sincere in their proposal they would not attempt to tax the necessities of life, tools of production nor supplies necessary to conduct America`s businesses, and which our Founding Fathers never intended to be taxed when taxing consumption. In any event, contrary to the lie used in promoting H.R. 25, consumers would in fact pay the tax on the basic necessities of life under H.R. 25!
As to a half truth used by Boortz to promote the socialist friendly H.R. 25 legislation, that half truth being;
``It doesn't matter that paying taxes will be voluntary under the Fair Tax plan``, such a statement would in fact be unassailable if, and only if, the necessities of life, tools of production and supplies necessary to conduct America`s businesses were not taxed under the H.R. 25 plan. But such items would be taxed under H.R. 25 and to conclude as Neal Boortz does, one must pretend that starving one`s self to death and the shutting down of America`s businesses and industries is a rational approach for Americans who wish to avoid paying the alleged ``voluntary`` tax on the necessities of life and supplies necessary to conduct America`s businesses. And so, we list this assertion of Neal`s in the MYTH column where it rightfully belongs.
Finally, H.R. 25 is in fact a liberal big government friendly plan!
Neal Boortz promotes his plan by saying ``liberals`` are attacking the plan. But the truth is, no thinking conservative would ever promote the socialist friendly, big government friendly, H.R. 25 proposed legislation!
Boortz boasts that H.R. 25 is revenue neutral, which just happens to be code language for a plan intentionally designed to support existing big government and all the existing unconstitutional
political plum jobs on Capitol Hill, many of which have six figure salaries, are not authorized by the powers granted in our Constitution, and do nothing more than redistribute money taxed away from hard working Americans for objects not authorized by the Constitution!
Those who are sincere in wanting real tax reform, ought to be promoting a return to our founding fathers original tax plan, by adding the following words to our Constitution:
The Sixteenth Amendment is hereby repealed and Congress is henceforth forbidden to lay ``any`` tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money.
These words bring us back to our Founder`s plan which helped to make America the economic marvel of the world, and also helped to control the actions of Congress!
For an outline of the Founding Father`s original tax plan
CLICK HERE and scroll down to :
American Constitutional Research Service Before the
Committee on Ways and Means
United States House of Representatives
June 1995
Mr. Chairman and Members of this Committee:
To see what real conservatives in America are promoting with regard to raising a federal revenue,
CLICK HERE
Regards,
JWK
``He has erected a multitude of new offices , and sent hither swarms of officers, to harass our people, and eat out their substance`` ___Declaration of Independence