Tag Archives: Fair Tax

The Campaign Tax Discussion

What an opportune time to talk about tax reform, thanks to the ft-how-federal-income-taxes-were-distributed-in-2014_04282015-lgClinton campaign and their publicist, the New York Times. Accusing Trump for not paying “his fair share.” To chastise Trump for having to hire a team of accountants and lawyers just to file his taxes, shows what an abortion of tax code Americans are saddled with. For example . .

  • The top 1 percent of earners (incomes in excess of $615,000) are paying nearly half — 45.7 percent — of individual income taxes for tax year 2014.
  • The top 20 percent, with incomes above $134,300, pay nearly 84 percent of all federal income taxes for tax year 2014.
  • The growing complexity of the U.S. tax code has led to large compliance costs for households and businesses.
  • Americans will spend more than 8.9 billion hours complying with IRS tax filing requirements in 2016.
  • Put in dollar terms, the 8.9 billion hours needed to comply with the tax code computes to $409 billion each year in lost productivity, or greater than the gross product of 36 states.

That’s not how much taxes were paid. That’s how much it cost us, as a country, just to comply with the tax laws to file our taxes.

Under the FairTax plan, that’s $409 Billion per year that stays in our pocket, FOR FREE. Under the FairTax, you don’t “file” your taxes any more. There’s nothing to file under a consumption-based tax system. And April 15th is just another day.

So Hillary and her lemmings want to paint Trump as a tax cheat when he follows the tax law. Legally spreading a single loss in 1995 of $916 million dollars over 18 years. (Must be nice to have a loss like that to be just a bump in the road.) Unlike Al Sharpton, Trump did not break the tax law. They are great at name-calling on phony accusations.

Well guess what? Come to find out, the New York Times didn’t pay any taxes either, for 2014! And on top of that, got a “tax refund” of $3.5 million (of taxpayer money), even though they had a pre-tax profit of $29.9 million. How do you like the tax code now?

But when it comes to one of their own, like Rev. Al Sharpton, who in fact did not pay his income and payroll taxes, who has tax liens on him for over $3 million, well, he’s a frequent VIP in The White House.  Go figure!

Nowadays, Bill Clinton and Al Sharpton will tell you the hot money seems to be made in Charities and Foundations. They don’t pay taxes, especially when you can donate to yourself. Two different worlds, two different standards.

2016 POTUS CANDIDATE CHALLENGES SENATOR CRUZ ON FEDERAL TAXES

Republican Kerry Bowers Says Senator Supports Contradictory Tax Plans

Henderson, NV, 23 March 2015 – The Kerry Bowers for President Committee released the following remarks in response to Senator Cruz’s recent actions and statements specific to federal taxation.

“On 19 March, I applauded Senator Cruz’s 10 March addition to the list of cosponsors for Senate bill S.155, the Fair Tax Act of 2015, which is a companion bill to HR 25 introduced in the House of Representatives. The Fair Tax is a national retail sales tax that abolishes all forms of income, payroll and corporate taxes and replaces them with a sales tax, one that includes a family consumption allowance to reduce or eliminate the regressive effects of a sales tax. The bill also abolishes the IRS and includes a ‘sunset’ title requiring repeal of the 16th Amendment to the U.S. Constitution within 7 years else the Fair Tax is repealed. The companion bills today have more combined congressional sponsorship than any other proposed tax reform or replacement measure introduced to both houses of the 114th Congress.

I then learned that the Senator on 17 March, in an appearance on the MSNBC show, ‘Morning Joe,’ stated the following: “The perfect, the ideal and what I intend to fight for is a simple flat tax, where every person can fill out his or her taxes on a post card, which would enable you to abolish the IRS.” The senator, when queried by host Joe Scarborough what the tax rate would be, offered; “we’re still working the numbers.”

In my opinion, the Senator revealed he has no detailed plan or serious commitment to effectively and permanently change one of the most obstructive, destructive and liberty-infringing mechanisms imposed upon the American people. He has taken a position, as reflected in his statements, indicative of yet another income and payroll tax system, one contrary to the Founder’s vision for appropriate federal taxation as evident in the original Constitution and addressed in great detail in the Federalist Papers. This stated position stands in stark contrast to his eloquent speeches in which he implies his intent to restore the ideals imparted by the Founders in the nation’s framing documents.

I also believe it is disingenuous for the Senator to say that the IRS would be abolished under a flat income tax since the tax will require continued oversight of the 165-plus million individual tax filers and 20-plus million businesses. The Fair Tax, on the other hand, will require only businesses to file reports and make remittances; the administration and collection of the sales tax will be reserved, principally, to the States and done so on a voluntary and reimbursement basis. That last point is advocated in the Federalist Papers as a measure to avoid unnecessary redundancies in tax agents for the collection of impositions on items taxed by both the federal and state governments.

Perhaps an even more important aspect of the Senator’s flat-tax proposal, but not addressed by him, is the preservation of every avenue through which Congress may, and again, change a simple income tax system into the same discriminatory, incomprehensible and tyrannically-imposed system the American people endure today. One of those avenues that should be addressed as ‘dangerous’ and eliminated is the 16th Amendment which, as the debt continues to grow, could be used to seize personal assets to cover the nation’s financial obligations. Such seizures could occur under numerous disguises, including additional taxes imposed on every American’s accumulated wealth and the seizure of retirement funds for subsequent replacement with a government-controlled annuity.

The American people need to be truthfully advised too by those who promote a flat income tax that the peoples’ idea of a simple, single-rate tax is not what Congress will likely impose upon them. It will be either a multiple-rate system, like that recently proposed in the Lee-Rubio plan, or a single-rate system replete with wage-determinant deductions and exemptions designed to achieve the same result as a multiple-rate tax system. The people should also be reminded that payroll taxes for Social Security and Medicare, which most workers pay double or more than what they pay in income taxes today, will remain in effect under a flat income tax.

Bottom line, the Senator’s conflicting positions are troubling and especially so in these extraordinary times.  We are at a pivotal point in our nation’s history and one that will require extraordinary leadership with extraordinary plans to alter the course upon which we are embarked. The proposition of another income tax does not meet the requisites to effect a suitable and sustainable course correction.”

The Answer For Punitive Tax Code, More Puntitive Tax Code

Charles Schumer (D-NY), No. 3 leader in the Senate’s Democratic majority, is working on a tax provision designed to discourage companies from moving their tax domiciles overseas, where the tax liability is lower than the U.S., that has the highest corporate tax rate in the world.

Which is exactly what is wrong with the current IRS tax code. It is used by politicians as a tax hammer to either reward or punish economic activity. In this case, Schumer is upgrading to a sledge-hammer, by attempting to grab business profits retroactive to 1994. It’s the Democrat’s version of an Occupy Wall Streeter’s wet dream. And would most certainly fire up the wealth-envy part of their party’s base.

The proposal would cut the amount of deductible interest for inverted companies to 25 percent of U.S. taxable income from 50 percent, according to a draft obtained by Bloomberg News.

There is only one tax code that is economically stimulative. Not just for business, but for the middle class and the poor. It’s called the FairTax. And it does not have tax hammers. If fact, the FairTax can not be manipulated by politicians to pick winners or losers. On the contrary, it couldn’t be more open and transparent, or fair. And instead of being an incentive to move out of the country, the FairTax would be the incentive for corporations to being their assets back home and be put to work here. And the only employment problem we would then have is finding enough people to fill the jobs that would be created by the economic recovery that would result in all sectors of the economy.

Link: Schumer Anti-Inversion Tax Plan Could Reach Back to 1994 – Bloomberg.

Merck Reports Record 2Q

Time for a little good news from an industry that is continuously under attack from the slip-and-fall lawyer industry.

Merck & Co. (MRK) on Tuesday reported earnings that more than doubled in its second quarter, and topped analysts’ expectations.

  • Earnings, adjusted for one-time gains and costs, were 85 cents per share.
  • Merck shares have increased $7.92, or 16 percent, to $57.97 since the beginning of the year.
  • The stock has climbed $9.63, or 20 percent, in the last 12 months.

What comes next is the attacks from the anti-capitalist Progressives, accusing Merck of evil doings. What they won’t say is that Merck merely followed the IRS tax code.

Link: Merck 2Q profit more than doubles

Spreading The Wealth Gone Wild

Where President Clinton built wealth-spreading into the tax code, President Obama put it into overdrive by adding “social justice” to it with the addition of the non-affordable Affordable Care Act. A nationalized health care scheme that requires the young and healthy to pay for the old and infirm. The consequences are surprising, and getting worse.

In a random act of journalism, CNBC reporter Jane Wells gives the striking details of a CBO report released last week entitled The Distribution of Household Income and Federal Taxes, 2010. (Table 3, Page 13) In personal income taxes it boils down to this, the rich don’t pay most taxes, they pay ALL the taxes. The upper two quintiles, or 40% of taxpayers, pay 106% of all personal income taxes. For the lower 40%, their “taxes” are a revenue stream.

Politicians are pretty slick when it comes to manipulating the tax code. Which is why we must get rid of it and replace it with something that can’t be used as a tool for class warfare and social engineering. The FairTax is the best alternative, for everybody. But I digress.

Remember the Taxpayer Relief Act of 1997? The tax code becomes a vehicle for spending programs.

Wielding the tax hammer for social engineering increases public debt. Lesson not learned here is that money doesn’t grow on trees and, stop increasing the spending. But it’s OK if you can use the tax code to buy votes. What? This is where the class envy/class warfare tactic, as connected to the tax code, was taken to a higher level.

The Taxpayer Relief Act of 1997 made additional changes to the tax code providing a modest tax cut. The centerpiece of the 1997 Act was a significant new tax benefit to certain families with children through the Per Child Tax credit. The truly significant feature of this tax relief, however, was that the credit was refundable for many lower-income families. That is, in many cases the family paid a “negative” income tax, or received a credit in excess of their pre-credit tax liability. Though the tax system had provided for individual tax credits before, such as the Earned Income Tax credit, the Per Child Tax credit began a new trend in federal tax policy. Previously tax relief was generally given in the form of lower tax rates or increased deductions or exemptions. The 1997 Act really launched the modern proliferation of individual tax credits and especially refundable credits that are in essence spending programs operating through the tax system.

“There’s no difference at all in terms of the effects on the federal deficit,” says Roberton Williams of the Tax Policy Center. “It’s perfectly equivalent. It’s just easier to say, ‘I cut your taxes’ as opposed to ‘I created a new federal program to send money to people.’”

Links: The rich do not pay the most taxes, they pay ALL the taxes  |  Happy Tax-The-Rich Day

 

Budget “Deal” Reached, But

What do you call a budget deal that spends $63 Billion of “settled law” called the sequester? I call it a Republican surrender. Never mind that since the sequester began, the Obama administration has claimed some economic recovery. And never mind that the sequester passed with bi-partisan support.

For un-sequestering $63 Billion dollars today and for the next eighteen months, the deal promises reductions totaling $85 Billion elsewhere. But that’s not for today or the next two years. That’s for the next ten years. Who in their right mind believes this will happen?

But that’s not even the most insane talking point the House and Senate Republican leadership is touting. They use buzz words like “specific deficit-reduction provisions” and “mandatory savings” and “non-tax revenue” that makes up this fictitious $85 Billion number. And “if you’re for deficit reduction, you’re for this agreement.” The snake oil they’re selling is that this agreement would cut the deficit by between $20 and $23 Billion, as if that actually means something. They call it “a step in the right direction.” It’s surrender. It’s means nothing more than trying to look relevant in standing up to Democrats for the sake of getting something done. It’s not going to stop demagoguery from Democrats. It’s not much more than moving the deck chairs around on the Titanic.

With a national debt of $17 Trillion, $23 Billion is like a mouse fart in a hurricane. There’s no serious attempt, not even the slightest attempt, to deal with the debt and deficit spending whatsoever. It’s like driving over the cliff at 60 miles per hour instead of 65.

Speaker Boehner is hoping to win something by playing defense with the Democrats. Mr. Speaker, you don’t win anything by playing defense. What Speaker Boehner is doing is effectively managing the decline of the Republican party. He’s doing it in two ways. By budget deals like this, which will rise its head again in time for the 2016 general election when he’ll once again cower to the demagoguery of the Left. And by attacking republicans in the House and throughout the country. Republicans who want to see real evidence of getting to a balanced budget, which necessarily means working toward not spending more than we take in, (to quote President Obama) PERIOD. I recall that that’s what they were elected and sent to Washington to do. And he can start by putting an end to the insane “baseline budgeting” scheme. If you and I can’t use baseline budgeting, what on earth makes any sane person think that the government should? They should be forced to justify every dollar of their budget before it is allocated.

This budget deal dodges a bullet. To win seats, Speaker Boehner needs to go on offense and shoot one of his own. He needs to carry a republican platform instead of a democrat-lite platform. He needs to talk about bold tax reform like the FairTax. Something that eliminates the current, punitive IRS tax code.  He needs to talk up health care reform like H.R.2300, the private-sector solution. And what better time to do that? And he needs to talk about how unleashing the economic engine of the country, achieving true energy independence, creating jobs, and putting people back to work again will turn this ship around. That’s what the American people want. And that’s something that, so far, only Republicans have a chance at delivering. Problem is, I’m not so sure Speaker Boehner has what it takes to get us there.

Kerry Bowers For President In 2016

kerry_bowers_2016endofstory

I am pleased to announce and pass along this video of Kerry Bowers’ bid for President of the United States for 2016.

Aside from a long career in the United States Air Force, Kerry has been actively involved in communities and states where he and Deb have lived. For the last several years as volunteer State Director for Americans For Fair Taxation, AFFT, and before that as Co-District Director for the Panhandlle District of the Florida FairTax Education Association, FFTEA. As a supporter of the FairTax myself, this is where and how I met Kerry and Deb.

Kerry Bowers is not only a man of principle, a believer in the Constitution and Bill of Rights, but a humanitarian too. His platform on more topics than any other candidate dare shake a stick at are available, right now, on his website KerryBowers.com. Your path to Restoring America’s Blessings starts there. Read his platform. It isn’t a laundry list of complaints and finger pointing. Rather, it is a laundry list of solutions. It also better equips you to ask questions of other candidates and probe what their solution may be. If they even have one.

Because of his openness and honesty, you know what you can expect when you vote for him in a primary election, then hopefully in the 2016 general election. He shows you where his fiscal priorities are by showing you his proposed budget for 2015. Ever seen another candidate do that? Then there is our current president who won’t make one. There’s no political smoke and mirrors with Kerry Bowers. You can expect a thoughtful and constitutionally based opinion or decision on any topic. He believes in the power of the people as opposed to the power of the government. He sees, like you see, an oppressive government now. A government that is holding America back. He knows the key to more and better paying jobs, economic recovery, and the return of, and to, family values is in reforming more than just the tax code. It must also include reforming the government. Or as he puts it, Restoring America’s Blessings.

As he states in this video, he is setting the standard for the presidential candidates of 2016. In my humble opinion, you owe it to your family and our country to visit his website and check him out.

Link: Full Transcript of the 2016 Presidential Campaign announcement video

Leo Linbeck, Jr. Dies, Philanthropist, FairTax Co-Founder

More than just a co-founder of the FairTax. Leo Linbeck, Jr. was a visionary and philanthropist. It was his efforts along with two other wealthy friends, Robert McNair and Jack Trotter, that shared the vision of a tax system that was fair, simple, transparent, and conducive to economic growth. Never before has anyone thought that a tax system, by definition, could be conducive to economic growth. It was their joint efforts, and their $22 million that paid for the years of research that ultimately ended up as the FairTax. The most thoroughly researched tax system that treats taxpayers with respect, and none of it done with taxpayer dollars.

Statement from Americans For Fair Taxation® on the passing of chairman and co-founder

Leo E. Linbeck, Jr.

Linbeck-SMFairTax® giant devoted the past 20 years to championing fair and transparent federal taxation

HOUSTON, TX – June 8, 2013 – Americans For Fair Taxation® (AFFT) announced today the passing of its Chairman and Co-founder Leo Edward Linbeck, Jr.

“The American people have lost a giant who championed simple and fair taxation for everyone,” said Cynthia T. Canevaro, AFFT national campaign manager. “Leo Linbeck, Jr., has devoted 20+ years passionately advocating for fair and transparent federal taxation for all citizens regardless of income or social standing.  He was committed to replacing the income tax, a system that favors special interests while punishing taxpayers at every level, with a national consumption tax that taxes citizens not on what they earn, but on what they spend on new goods and services.”  The Plan includes the repeal of the 16thAmendment and the elimination of the IRS.

Linbeck was a nationally known Houston businessman and philanthropist.  He was a longtime Chairman of Linbeck Construction Corp., a firm founded by his father in 1938 and ranked in 2012 by ENR as the sixth largest building contractor in the U.S. specializing in general building construction for the private sector.  At the time of his death, he also served as Chairman of Aquinas Corporation, a holding company for the Linbeck Group.

In 1995, Linbeck joined forces with Robert C. McNair, founder, chairman and CEO of the Houston Texans NFL team, and Jack Trotter (now deceased), to found Americans For Fair Taxation®.  The grassroots organization works relentlessly to build national support for the FairTax®, a national consumption tax plan that treats every person equally and allows American businesses to thrive while generating the same tax revenue as the current four-million-plus word income tax code.

“Leo Linbeck recognized 20 years ago the destructive nature of the income tax and how unfair, overly complex, and impossible it is to administer.” said Canevaro. “He poured his time, resources, energy and unwavering passion into advancing the FairTax; a system that allows Americans to keep their whole paycheck while only paying taxes on what they spend, not what they earn.”  She added,  “We have truly lost an American hero and Patriot, one whose vision will live on among FairTax supporters nationwide. Our thoughts and prayers are with his wife Bette, the entire Linbeck family and the legion of friends who now mourn his passing.”

 

We at Fair Tax Nation are saddend by the passing of Mr. Linbeck, Jr. We will continue our work to make his dream come true — to pass the Fair Tax.

Marilyn Rickert

10 Items Whose Prices Have Jumped the Most in the Past 10 Years

You’re paying 145% more to heat your home and about 100% more to put a gallon of gas in your car today than you did 10 years ago. And you can thank the EPA anddollar environmentalist wackos for the top two.

All of them, except possibly #9, are the result of either government regulation or the political influence of labor unions and special interest contributions. You lose.

  1. Fuel oil and other fuels (for home): 145%
  2. Gasoline (all types) for cars: 108%
  3. College tuition: 88%
  4. Hospital services: 85%
  5. College textbooks: 83%
  6. Elementary and high school tuition and fees: 67%
  7. Beef and veal: 64.8%
  8. Eggs: 58%
  9. Veterinarian services: 63%
  10. Tax return preparation and other accounting fees: 51%

Sure makes the case for smaller government and the FairTax doesn’t it?

Link: 10 Items Whose Prices Have Jumped the Most in the Past 10 Years

Tax Credit Bonanza For Illegal Immigrants?

Can’t think of a better way to just slit this country’s throat. Why do Democrats like Schumer hate this country so much that they’re willing to lay down our sovereignty and heritage? Too embarrassed to be proud of America at the expense of political party dominance. Do you know of any country that would pay illegal immigrants to come and for being here illegally?

It’s no wonder Democrats won’t consider the FairTax. It doesn’t allow for income redistribution like this.

Tax credit bonanza for illegal immigrants? | The Daily Caller.