Like most small business owners, I cringe when paying taxes. It’s my duty as an American citizen, however, I question if taking such a large chunk of what I earn is the right way.

Enter the Fair Tax legislation also known as H.R.25.

The Fair Tax repeals the income tax, employment tax, and estate and gift tax. A national sales tax of 23% on the use or consumption in the United States of taxable property or services would be implemented. In other words, only the money you spend would be taxed.

Scott Burns of the Dallas Morning News offers three good reasons for implementing the Fair Tax into our society.

1) Liberation of skilled workers.

Burns argues that income taxes fall hardest on skilled men and women who work hard in, and sometimes own, America’s small businesses. The burden of time and fees is the single largest thing that keeps these workers from accumulating wealth.

These workers are not represented by anyone in Congress, whether Democrat or Republican. Our laws are written by special interests that range from the AARP to the nameless lobbyists who tack on special tax breaks that benefit a single company or industry. That’s the way it is. It is an entirely corrupt system.

2) If you don’t spend your income, everyone benefits from it.

By not spending the money you earn, you are saving it. This extra cash flow will open up new capital for our economy. It would provide new cash for bank deposits, inventory for stores and manufacturers, and capital for equipment. Without the drain of taxation, a larger supply of capital would force down interest rates.

3) Greater equity in taxation.

The only true winners in our current tax system are the lobbyist who represent self-interest groups at the ultimate expense American small business owners like you and I. Both political parties fail to recognize that the worlds of work and entitlements are on a collision course.

Recommended Reading:

• FairTax.org – Americans for Fair Tax
• The FairTax Book by Neal Boortz
• Thumbnail Sketch of the FairTax

3 Responses to “Fair Tax Legislation”

1. John W. K. says:
   

   Support fair tax? Be careful of what you support and always keep an open mind! Hopefully the following will cause you to think!

   The FT does not repeal the “income tax”. Only a constitutional amendment can forbid Congress to calculate a tax from income. H.R. 25 is nothing more than a list of suggestions. Even if it were to pass and be signed into law by the President, it would not be binding legislation upon a future Congress which would be free to change the plan at their pleasure. The only way to achieve real tax reform is through a constitutional amendment, which binds the hands of Congress. Under the FT proposal, a future Congress is free to slowly amend H.R. 25 to its liking and reestablish the very system we now have, leaving us with the addition of a tax on all consumer goods and services. If the Fair Tax was now in practice, how many people would object to a small tax upon the profits of those evil corporations?

   All people when purchasing the necessities of life will still pay the 23 percent tax on such articles. The family consumption allowance is a monthly government check given to each household, and rations the amount of tax free necessities to each household by the size of the check if it is used for those items.

   In addition, H.R. 25 is down right socialist friendly in that it would put every American Household on the government dole via its monthly “family consumption allowance”, and would give Senator Ted Kennedy a very valuable tool which he and his (colleagues) in Congress will promise to increase during election time to buy millions of votes to remain in power, just as they 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 created by Congress___ the only difference with H.R. 25 is, its family consumption allowance promises to extend 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 the Federalist Papers that control over a man’s subsistence amounts to a control over their will?

   It should also be noted the monthly family consumption allowance checks which would be sent out by government under H.R. 25 would come from taxes paid by people who work for a living. The family consumption allowance entitles those who don’t work for a living to receive the allowance, for example, drug dealers and users are entitled to the allowance; burglars and armed robbers are also entitled to the allowance; and, even your local un-wed welfare-moms who stays at home, don’t work but makes babies to increase their welfare check. are entitled to the allowance and would in fact each be getting a $400 per bonus under the family consumption entitlement which turns out to be another socialist transfer of wealth scheme!.

   H.R. 25, the alleged FairTax, would create the largest entitlement program in the history of America under its family consumption allowance___ an entitlement which is estimated would cost $ 600 BILLION a year!

   In addition to making American households dependent upon a monthly government check, the fair tax proposal expands the number of tax gathers to include individual tradesmen and entrepreneurs, and even ordinary working people engaged in self employment, forcing them to all “register” with folks in government in order to pursue a livelihood [ see SEC. 502. REGISTRATION].

   In short, the FT proposal would require these poor souls to become a modern-day regiment of enlisted tax gathers for government, increasing the number of tax gathers throughout the United States to an all time high, and compelling each to maintain burdensome and inquisitorial records and reports under a penalty of perjury [just as is now done with the income tax] to satisfy the wants and fancies of tyrants in government… all the above to be implemented under the pretext of the “Fair Tax Reform“, a reform which promises to abolish the IRS and income taxation, but in substance and truth will only tighten the iron fist of government around the people’s productivity, while demanding the people to shamefully kneel to the iron fist of government, to receive their monthly government subsistence check .

   Amazing that the plan is sold on the idea that it will raise existing levels of revenue which is code wording to indicate the FT is designed to intentionally support existing big government, and pay for the salaries of all those involved in big government unconstitutional political plum job offices.

   If H.R. 25 was enacted into law tomorrow, and a future Congress followed its language to the letter, it would not stop Congress from calculating a tax from corporate income as upheld in FLINT v. STONE TRACY CO., 220 U.S. 107 (1911). Under H.R. 25, our socialists in Congress would still be able to lay and collect a tax calculated from income just as is now calculated under the Income Tax!

   IN CONCLUSION, The only stinking tax reform we need is to add the following words to our Constitution, bringing us back to our Founding Father’s original tax plan:

   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.

   Those who are unfamiliar with our Founding Fathers original tax plan, as they intended it to work, a plan which also includes a specific method to extinguish an annual deficit, CLICK HERE and scroll down to :

   American Constitutional Research Service Before the
   Committee on Ways and Means
   United States House of Representatives
   June 1995

   Regards,
   JWK

   “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” — Thomas Jefferson

   Posted December 30th, 2005 @ 5:11 pm
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2. Chris says:
   

   The above comment was partially edited to remove unnecessary “paraphrased political radio talk show caller statements” that dilute the commenter’s points as well as this entire page.

   There were also political labels and name calling that I removed such as “liberals”, “Fair Tax con artists”, “socialist disciples”, and “tentacles of socialism”.

   John, I feel that you successfully made your point without these labels.

   Many people want to point fingers and develop catchy, derogatory names for their opposition in order to advance their ideals further. Say what you will in the name of free speech, but I will not allow name calling or political labels in this blog.

   JWK is in support of the Constitution Party.

   Posted December 30th, 2005 @ 6:28 pm
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3. john w k says:
   

   Well, the self anointed fountain of the “painful truth“, Neal Boortz, [a radio talk show host who is promoting H.R. 25, the alleged fair tax] has revealed himself to be ignorant and void of truth when it comes to a knowledge of our Constitution!

   Last week when a caller correctly asserted on Neal`s show our Constitution provides a rule that no religious test shall ever be required as a qualification to hold any office or public trust, Mr. Boortz was found to be totally ignorant of such a provision in our Constitution.

   Likewise, Mr. Boortz also shows his ignorance of our Constitution in promoting H.R. 25 as a legislative act, which, if adopted by Congress and enforced, would violate another fundamental rule and protection of our Constitution. It would violate the constitutionally guaranteed fair share formula requiring a general tax among the states [which H.R. 25 is] to be apportioned among the states so each state contributes an amount of a total sum being collected under the tax in proportion to its allotted number of votes in the House of Representatives.

   Our Founders Fathers agreed by their ratification of our Constitution that those states paying the lions share of the tax burden to fund the Constitutionally authorized functions of the federal government, would have a proportional voice equal to their financial contribution in determining how their money would be spent. Of course, socialists and the friends of big government dread the founding fathers` fair share formula as it boils down to a rule requiring representation with proportional obligation!

   H.R. 25 is “conceptually identical“ to the Marxist income tax because it intentionally seeks to calculate the amount of tax to be paid from wealth, property and financial success within each particular state ___ a political philosophy advocating from each state according to its ability, rather than an equal per capita tax apportioned among the states as the founding fathers intended by our Constitution’s fair share formula articulated in Article 1, Section 2, cl. 3.

   If Neal Boortz was a supporter of our Constitutionally limited Republican Form of Government as he repeatedly claims to be, and supports the concept of taxing consumption, then he, at the very least in promoting H.R. 25, would demand a provision be attached to H.R. 25 requiring the rule of apportionment to be observed when laying the H.R. 25 tax among the states. And, without such a rule being applied to the tax, he would have no alternative to not supporting H.R. 25 as it violates our existing constitutional rule of fairness___ it violates our Constitutional guaranteed fair share formula articulated in Article 1, Section 2, Clause 3.

   For an example of Congress abiding by the rule of apportioning a general tax among the states see Act of Aug. 2, 1813 apportioning a tax of $3 Million and each state’s share of the tax. H.R. 25 violates this rule!

   For related information see: MESSAGE TO FAIR TAX RALLY PARTICIPANTS

   Regards,
   JWK, a proud supporter of our founding fathers’ORIGINAL TAX REFORM PLAN

   ``If the Constitution was ratified under the belief, sedulously propagated on all sides, that such protection was afforded, would it not now be a fraud upon the whole people to give a different construction to its powers?“–Justice Story

   Posted July 9th, 2006 @ 9:45 pm
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