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More FairTax Advocates Have Their Say

FairTax Letter 1 Continued

By Mike Moffatt, About.com

Estimates by Professor Jorgenson are that prices will actually drop between 20-30% when the corporate income tax is eliminated. We, all, will take home 100% of our wages and investment dollars. this coupled with the "universal" Family Consumption Allowance (FCA) built into the plan will virtually un-tax the poorest among us and drop the average wage earner's FairTax burden to around 11.5% after the FCA rebate. This FCA is based on the poverty level established by HHS for the number of people in a household and is multiplied by the 23% sales tax, then divided by the 12 months of the year and paid at the first of each month to all households through electronic transfer the same as Social Security is done now.

Earned income credits and other "gimmes" are used to keep the poor and needy on board the socialistic income tax system bandwagon. Our founding fathers had a simple and clear vision of a citizenry with control over the money it worked to earn and with the corresponding ability and independent judgement to excercise its rightfull authorty over government. But, the reversal has become true. Today, we vote for candidates and support politicans based on the financial benefits they can provide us. And they take our earned income up front to provide services that are, all too often, arbitrary and unfair.

The concept that the FairTax helps families earning more than $200.000 and hurt families earning less is totally wrong. A family buying a new home will pay the FairTax while a family buying a used home won't. The family making a million dollar purchase will pay the full FairTax while the family earning $46,000 making a thousand dollar purchase who pays the tax will actually only be paying 11.5% in after rebate dollars.

One has to understand the tax inclusive/exclusive rates when figuring the marginal rates. While it may be somewhat dificult for the layperson to understand it is much more dificult for even the best educated among us to understand the eight million words of the present tax code. If you look up "Tax Inclusive vs. Tax Exclusive Rates: What is the Salient Difference" at www.fairtax.org you will find that they are defined very efficiently. When understood the FairTax will be easy to sell to the voters.

Then your arguement that we could wind up with an income and sales tax fails to take into account the fact that the IRS will be shut down upon implementation of the FairTax. On top of that while you may po-po the idea that the 16th Amendment could actually be repealed a bill (the liberty amendment) is in the wings just waiting to be passed by Congress and ratified by the states to do just that. And with the hated income tax and IRS gone the groundswell of support for its passage will not be able to be resisted by our legislators.

Who will win under the FairTax? We all will become winners. Alan Keyes said in an article written for the March 2002 issue of American Legion Magazine that "the income tax (in any form) is utterly incompatable with liberty. It is actually a form of slavery." He goes on to say, "A slave is someone the fruits of whose labor is controlled by somebody else. He is not someone who has nothing but rather he only has what the master lets him have."

If we still believe we deserve - and have the capacity to be free - ending the income tax is a duty to ourselves and our posterity. The FairTax may just be the only chance we have of freeing ouselves from the bondage of the income tax system. AFFT is working with hundreds of thousands of volunteers all across the country to see that it does happen - sooner than later.

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