This article, by John McMillen, is an excellent rebuttal to claims made against the Fair Tax (http://FairTax.org). Please read. Anywhere you see the word ‘gentleman’, think ‘Democrat’:
I implore you to take the time to read this in its entirety to arm yourself with the facts, and to understand what a liberating opportunity American has, and can achieve with your support.
Below is a follow up to ‘The Right Voice’ blog radio interview I had Tuesday 8/18. It is an illustration of the misinformation we have to overcome in order to get your ‘support’ and the support of millions more Americans out there who don’t know what the Fairtax really is.
If you haven’t heard the interview, and have interest, here’s the archive link. After the audio starts to play, you will have to scroll horizontally on the time tracking bar to about the 18:40 time mark to get the beginning of my segment.
This is to illustrate what the Fairtax must overcome to get people to understand the truth about the Fairtax…………………………………….
I did a radio interview Tuesday night the 18th on a web radio called “The Right Voice.”
A fellow from West Palm Beach, Florida called in to filibuster and dominate the very limited amount of time I was allotted to try and get just a few simple facts out to your audience about the Fairtax bill in congress right now, House Bill HR-25 and senate bill S-155.
The gentleman called in and tried to make a case against the Fairtax with a made up scenario with the intent to totally disrupt, distract and destroy the Fairtax message I was attempting to convey.
He threw out the hypothetical example of a Billionaire with a taxable income of 1 Billion Dollars in the tax year 2014. He first made the false assertion that a billionaire would have paid a 40% tax rate on his on earnings of 1 billion dollar in 2014.
I called him on the 40% tax rate in his made up scenario, and pointed out that a Billionaire would not have filed his billion dollar income under the 40% tax rate rubric subject to an income tax, but those types of incomes are typically earned through investments, and they pay a much lower percentage rate under the capital gains tax provision of the IRS code.
So that was his first blatant misrepresentation purposely proposed to listeners in an attempt to deceive.
His whole point was to illustrate how ‘unfair’ the Fairtax is. So he continued his Billionaire example to try and make a point of unfairness of how the current lower income W-2 wage earning taxpayers would have the Fairtax tax burden unfairly dumped on their shoulders to provide the shortfall between what the Billionaire pays now, and what he would pay under the Fairtax. “Just another tax cut for the Rich, on the backs of the poor”…same ole rhetoric we always hear when a proposal to allow W-2 income earners to keep more of their hard-earned paycheck. It’s a diversionary tactic to prevent the busy public from understanding what a beneficial proposal the Fairtax really means to the average Joe.
So the gentleman continued with his skewed made up example. He insisted that the Billionaire would only spend a minuscule amount (1/1000th) of his income buying goods and services; claiming out of a thousand million dollars in income the billionaire would only spend one million dollars in purchases of goods and services in a year…as if that is the universal absolute reality of what Billionaires does with his or her money.
First, of all it is none of that gentleman’s business, nor mine, or anyone else’s business how a billionaire spends money he or she has ‘earned’ or “how much” they choose to spend! It is none of his business ‘how I spend money that have earned or how much I spend.’ It is none of his business ‘how you spend money that you have earned, or how much you spend.’
The gentleman completely ignored the bigger picture. Billionaires like Donald Trump for instance, create 10’s of thousands, if not millions, of jobs for thousands, if not millions, of Americans.
That gentleman has no way of computing how much money a billionaire’s investments generates in salaries of those thousands if not millions of employees that gets poured into our economy that circulates, and circulates, getting turned over and over many, many times to the benefit of Thousands and Thousands of earnest hard working Americans and business owners.
There are Trillions of dollars that are controlled by ‘Billionaires’ and ‘Millionaires’ that have fled the shores of America’s immoral covetous, confiscatory, IRS Tax code.
The gentleman purposely ignores or is completely ignorant of the Trillions of dollars under the control of ‘Billionaires and Millionaires’ that would flood back to America’s shores if we got rid of the IRS tax code, and quite punishing success, and only tax what you spend instead of what you earn.
This repatriation to our American economy would provide thousands, hundreds of thousands, millions of new jobs. This creation of more jobs would generate an increase in consumer spending, revive our American spirit and reinvigorate our economy.
The unshackling of what you do with you money would be a liberating, inspiring thing to the individual soul who alone would have the decision to purchase or not to purchase…or to save tax free tax penalties, or more confiscation from the interest income or capital gains. No more crippling regulations on investments. How much money you make and what you do with you own money is nobody’s business but yours.
You would get your paycheck; free of withholding that now amounts to 15, 20, 25% of a paycheck… The embedded tax that is currently in the cost you pay at retail right now is another significant amount…Fairtax analysts say it’s an avg. 22%…critics say it’s only 13%….who do you believe? I would welcome either one in a reduction in prices before the 23 cents on the dollar Fairtax is added back on…with 15% or 20% more in my take home pay to make purchase with! Add to that the fact that I will receive a little over $600 per month to pay the taxes on spending. That’s the amount for a family of 4. A family of 4 making 31,000 per year would pay zero in sales tax.
So, IT IS NOT REGRESSIVE… …as critics claim.
This is why we must abolish that immoral bureaucracy that dips into your earned paycheck to fund things you find abhorrent to you and your personal morals. Yet they add insult to injury by dictating how and what you do with your money.
The caller from West Palm Beach, FL attempted to launch a filibustering screed torpedo that he thought destroyed the Fairtax concept. He spewed misleading false assertions that without Billionaires paying the current amount to the Federal General Revenue fund under the current income tax, there is no way the Fairtax could be revenue neutral as we claim.
Let’s examine the facts and truth about that false and erroneous assumption.
A.) There are 2,089 Billionaires in in the world as of Feb. 5, 2015 today…http://www.independent.co.uk/…/there-are-now-2089-billionai…
B.) In 2014 the tax year the gentleman from Florida used, of those 2,089 billionaires, there were 537 billionaires living in the United States. (Source, same link as above.)
C.) What would all of those 537 billionaires the gentleman was berating have paid to the IRS in 2014 using his one billion dollar earnings figure @ a 15% capital gains rate equate to collectively? … let’s see…537 X 1 Billion = 537 Billion dollars in collective earnings taxed at .15% = $80,550,000.00 (That’s 80 Billion, 550 Million Dollars) total revenue those billionaires would have paid into the total General Revenue fund using Dennis’ made up scenario and Dennis’ made up figures.
D.) In 2014, the total tax revenue collected by the IRS was $3,064,301,358,000.00…(that’s, 3 Trillion, 64 Billion, 3 Hundred and one Million, Three Hundred Fifty Eight Thousand Dollars.)
E.) Now, what percent of all those billionaires’ tax contribution equate to in the total Amount of revenue collected by the IRS in 2014? $80,550,000.00 contributions by Billionaires divided by the total $3,064,301,358,000.00 collected by the IRS = ONLY 3% of the Total!
The gentleman’s point is impotent — a seriously misleading distraction ploy.
The lower income Americans will not have to make up an ungodly percentage left void by the shortfall in revenue collected under the draconian Income Tax Code vs what would be collected under the Fairtax as the gentleman so desperately attempted to illustrate with bogus numbers.
As you can see if the 537 Billionaires in the United States didn’t spend one dollar in the United States, we only have to make up $80,550.000.00 (80 and a half billion dollars) in revenue to be revenue neutral (raise the same amount of revenue as the IRS Income Tax code is raising currently) …and that’s if those billionaires didn’t contribute one dollar to the general revenue fund, which we know darn well they will.
F.) How does that $80,550,000.00 compare to the taxes owed under the income tax, but are not paid? Depending on which article you read, that amount is $280 billion/year, $410 billion/year or $500 billion/year… …and rising!
G.) Tax-refund fraud is expected to soar again this tax season, and hit a whopping $21 billion by 2016, from just $6.5 billion two years ago, according to the Internal Revenue Service. Source:
H.) Scrapping those two sources of Fraud alone would equate to 3.7 times more money in collected revenue than the $80,550,000.00, because we know these people an millions more who are currently paying no federal income tax, will be purchasing daily. So the revenue stream will be there daily. And that even if those Billionaires in America didn’t spend a single dime! That money would sure be welcomed to shore up Veteran’s benefits, or Social Security, or Medicare.
Why do people come onto talk shows to deceive the people with talking points they’ve read on a hit piece blog somewhere, without figuring things out for themselves to verify that false information?
That gentleman from Florida appears to be far less intelligent and sincere than he tried to present himself to be.
I cannot understand, why? Why do people want to keep such a corrupt system as the IRS INCOME TAX?
Why do they want to call into a show to muddy the waters and distract from people’s understanding of the true facts with their misleading fabricated scenarios to demonize the Fairtax?
Why do we want to keep allowing one of the largest behemoth agencies of Government to be used to steal from those who produce and give to a constituency of non-producers dependent on politicians for their sustenance?
Go to http://www.Fairtax.org and learn the truth about the Fairtax
There was some editing for clarity.