My FAIRTAX Story_Paul Wizikowski

The FairTax plan simply makes sense for America. It replaces all income taxes at the federal level with a simple, transparent and fair tax on consumption. It is our single best chance to turn our economy around and move our country away from the brink of economical destruction. Give a listen as Paul Wizikowski tells his FairTax story:

 

 
What’s your FairTax sotry?

Romney Misstates FairTax Impact

Kalamazoo Sept.13, 2011- Because a politician or candidate says it, does not make it true. In a response to a question in the September 12 Republican presidential debate about the FairTax Mitt Romney stated that the FairTax will help the rich and poor but hurt the middle class. Because the question was asked only of Mitt Romney, no other candidate had the opportunity to respond to Romney’s statement and the public was left with only the unsubstantiated statement by Romney.

Some of America’s brightest economists have conducted studies on the FairTax that show that Americans of every income level and family status fare better under the FairTax than under the current income tax system. There is no study by any reputable economist that shows otherwise.

In hearings held this past July by the U.S. House of Representatives’ Ways and Means Committee, testimony was presented by economists Dr. Laurence Kotlikoff (Boston University) and Dr. David Tuerck (Beacon Hill Institute) that the FairTax will benefit all Americans by rapidly growing the economy and creating jobs in the U.S. for Americans.

Politicians and candidates making unsubstantiated statements do a disservice to the American public by misleading them, thereby leaving the public in the position of having to make decisions with false information. In the event that Mr. Romney has some evidence to substantiate his claim, the Michigan FairTax Association would like to know of it so as to determine its validity.

To view the studies and to learn about the FairTax plan go to www.fairtax.org.

Questions about the FairTax plan

Today we continue to address some of the more common misinformation and misconceptions regarding the FairTax plan. Where does all this misinformation come from and why do people continue to spread it without confirmation or even question? Perhaps the real question should be why would anyone want to continue to disseminate erroneous information when it can be so easily checked out.

“The Fair Tax eliminates various government services, Social Security, Medicare, Unemployment, etc.”

The FairTax plan has nothing to do with government services. Not only does it not eliminate Social Security, Medicare, Unemployment, etc. or any other of our current entitlement programs it does in fact fully fund these programs. The only thing that changes under the FairTax plan is the manner in which federal taxes are collected. Instead of paying taxes on every dollar we earn, we pay taxes on the dollars we spend. The FairTax is intended to be revenue neutral, meaning that it simply replaces dollar for dollar our current federal tax revenue. It just does it in a simple, fair and transparent manner.

So, under the FairTax plan Granny keeps getting her Social Security check every month and she continues to enjoy the protection of Medicare. The only change most of us will see is that we no longer have to spend hours or days preparing our income tax return because, whoops, there is no tax on income. We no longer have to save every receipt in hopes of a tax deduction. Our accountant is free to actually help us plan our financial future rather than spending most of their highly paid time on tax preparation. And, April 15 becomes just another beautiful Spring day.

“Anyone near a Canadian or Mexican border will go there to buy everything.”

This is commonly known as the “Over the border” argument.

The prices we are currently paying for goods and services include approximately 22% in embedded taxes. These are the income taxes that must be paid by every hand that touches these products and services from the producer to the consumer. Under the FairTax plan these embedded taxes no longer exist so the cost of production drops by approximately 22%. Then, the FairTax, of 23%, is added at the final retail consumer level bringing the cost of the product or service back to its original price. If the prices are going to remain virtually the same why would anyone race across the border to purchase goods and services? And, if they would, why aren’t they doing it now?

“People will take all their money out of the country.”

Again, this logic is assbackwards. People and companies have taken their money out of the country because of our current income tax system. There are billions, probably trillions, of dollars belonging to American citizens and companies sitting in banks all over the world because under our current system it would be worth half or less simply by bringing it back into the country. Under the FairTax plan there would be no tax or penalty on that money until and unless it is spent at the retail level. So, our citizens and our companies would instead race to bring it back into America and put it to work creating jobs and earning even more money.

“50 million tourists can’t spend enough to support 300 million citizens.”

Arguably, the greatest benefit of the FairTax plan is that it increases the tax base. The fact that millions of tourists will be contributing to our federal tax coffers is a bonus in increasing that tax base. Tourist spending is not intended to replace taxpayer contributions, but to add to it. By increasing the number of people paying taxes the tax burden is spread more evenly and lightly upon all, like a fine layer of smooth peanut butter on bread.

“If new homes are taxed but exisiting homes are not, people will stop buying and building new homes.”

An obvious assumption but a little research shows why this would not happen. Yes, the FairTax will be added to the final price of a new home. But, remember that the FairTax eliminates all the embedded taxes associated with the production of that home. And, existing home prices still contain those embedded tax costs. Take this combined with the fact that under the FairTax capital gains taxes are no longer a concern when selling a home, and that the dollars used to purchase a home have not been previously taxed and there is actually no incentive to buy an existing home rather than a new one. And finally, there is a finite number of existing homes. As people are better enabled to save the down payment and more people move toward home ownership the supply of existing homes will naturally decrease and as new homes are more affordable due to the lack of embedded taxes there will be an equilibrium reached between the two.

One final thought: Change is a fearful thing and the idea of the FairTax plan seems like a big change. In reality, it’s not. It merely changes the manner in which we pay and collect taxes. Those who truly should, and do, fear the FairTax plan are those in political power. The FairTax plan returns the power and control to the people of this country. Let us not forget that less than a hundred years ago we had no tax on income in this country. The income tax is a relatively modern innovation that simply does not work. It provides for government bureaucracies to control the purse strings of the nation, and thus to control the people. The FairTax plan reverses this situation and places the power of the purse with the people.

Cordially yours,

Tim

Answers to FairTax Questions

There are a lot of misconceptions and misunderstandings regarding the FairTax plan. In this article we’ll try to address some of the more common ones.

Is Healthcare taxed? Are mortgages taxed? Is food and water taxed?

Yes, products and services are taxed, but only at the retail level. All the embedded taxes that we are currently paying are removed from the system under the FairTax plan. Rather than prices increasing it is estimated that they will remain at about the same level because the taxes currently being collected by each member of the supply chain no longer exist.

How does the prebate work?

The prebate insures that no one pays any taxes on spending up to the poverty level. Meaning if poverty level income for a family of four is $22,000 then they will be ‘pre-imbursed’ for the taxes they will pay on spending up to that amount. Now, instead of simply not having to pay income taxes they also do not have Social Security, unemployment, and all the other withholding taxes subtracted from their paychecks before they ever see them.

Will we lose the Mortgage Interest Deduction?

The Mortgage Interest Deduction is an income tax deduction, but under the FairTax plan you’re no longer paying taxes on income so there’s no need for a deduction. Additionally, the FairTax only taxes newly constructed homes. Pre-existing home sales are not taxed. And additionally again, when you purchase a home under the current system your dollars have already been taxed. Under the FairTax plan you will receive all of your paycheck up front enabling you to save a bigger down payment in a shorter amount of time, and thus reducing your mortgage payment.

People will just stop spending and there will be no tax revenue.

People will not stop spending. In fact, when we compare our Personal Consumption Expenditures to our Adjusted Gross Income we discover that spending is a much more consistent and reliable measure. When times are good, people spend. When times are tough, people spend. Those of us living paycheck to paycheck may cut back on our discretionary spending, but those who have money continue to spend and some even increase their spending when there are bargains to be had.

What else is in the FairTax?

Lots of things but here’s one more thing to consider. There are millions of tourists and visitors who come to our country every year. Under the present system they contribute nothing in the way of federal revenue, but under the FairTax plan every dollar they spend will be a donation to our federal tax coffers.

Read the Bill (H.R. 25); read the books. Educate yourself. Passing and implementing the FairTax plan could, in one fell swoop, correct the direction of this country and remedy many of our growing problems. It’s fair, transparent, and simple. It’s everything our government doesn’t want so it’s up to us to understand it and insist upon its passage.

For more information and answers to questions about the FairTax plan visit www.FairTax.org.

Woodall Re-Introduces Fairtax Bill

On day one of the 112th Congress of these United States Congressman Rob Woodall (GA-07) re-introduced H.R. 25, the bill better known as the FairTax. Remarkably, the bill was introduced with a record number of co-sponsors. Below is a press release announcing the re-introduction of the bill and a list of its current co-sponsors. If your CongressPerson is not on the list please contact them and ask them why. The FairTax plan is definitely our best shot and possibly our last chance to actually turn our economy around. Links to contact your elected representative are below:

Use this link to easily find your congressman’s phone number ->
http://bit.ly/contactcongr

or

Use this link to send them a quick email. ->
http://bit.ly/ftcongress

WOODALL INTRODUCES FAIRTAX BILL ON DAY ONE WITH RECORD NUMBER OF ORIGINAL CO-SPONSORS
Press Release | Jan. 5, 2011 | U. S. Rep Rob Woodall

Posted on Thursday, January 06, 2011 5:52:22 AM by phil_will1

Washington, DC—On Wednesday, January 5, 2011, Congressman Rob Woodall (GA-07) introduced H.R. 25, the FairTax. The FairTax legislation eliminates the current income tax paradigm and replaces it with a system of taxation based on consumption. The bill was introduced on Wednesday with 47 original co-sponsors—the most original co-sponsors the bill has ever had for its initial introduction.

“I committed to the Seventh District of Georgia that my efforts in Congress would focus on reclaiming freedom for the American people. It is for that reason that I am proud to make the FairTax—the only bill that restores transparency and simplicity to our tax code—my very first action in Congress. I have said since its inception that the FairTax is not a tax bill; it is a freedom bill,” Woodall said.

Woodall, who was sworn-in to Congress earlier in the day, played an integral role in crafting the original text of the FairTax as former Congressman John Linder’s Chief of Staff when the bill was originally introduced in 1999.

“Our current tax system is a bloated, convoluted mess that gives government power over Americans’ pockets. With 47 Members of Congress and counting signing their names to the FairTax, we are closer than ever before to voting on legislation that eliminates the frustrating mess that is the IRS.”

Although the FairTax was introduced with 47 original co-sponsors, Woodall anticipates adding many more Members of Congress to the bill. Once the FairTax is introduced with the original co-sponsors, Members are able to sign on to the bill as co-sponsors throughout the 112th Congress.

“The number of signatures on the FairTax this time around is a testament to the will of the people. It is clear that Americans do not want to have their hard-earned money taken away and they want to reclaim the freedom to spend their money how they choose and when they choose.”

The list of original co-sponsors is as follows:

1) Tom Price (GA)

2) Brian Bilbray (CA)

3 ) John Carter (TX)

4 ) Michael Conaway (TX)

5 ) John Duncan (TN)

6) Virginia Foxx (NC)

7) Steve King (IA)

8 ) Michael McCaul (TX)

9) Pete Olson (TX)

10 ) John Sullivan (OK)

11 ) Mac Thornberry (TX)

12) Phil Gingrey (GA)

13) Roscoe Bartlett (MD)

14) Don Young (AK)

15) Ander Crenshaw (FL)

16) Todd Akin (MO)

17) Lynn Westmoreland (GA)

18) Tom Graves (GA)

19) Gus Bilirakis (FL)

20) Ted Poe (TX)

21) Randy Neugebauer (TX)

22) Jeff Miller (FL)

23) Robert Wittman (VA)

24) Jack Kingston (GA)

25) Marlin Stutzman (IN)

26) Jeff Flake (AZ)

27) Billy Long (MO)

28) Cliff Stearns (FL)

29) Tim Walberg (MI)

30) Dennis Ross (FL)

31) Dan Boren (OK)

32) Mo Brooks (AL)

33) Darrell Issa (CA)

34) Richard Nugent (FL)

35) Tim Scott (SC)

36) Blake Farenthold (TX)

37) Jeff Duncan (SC)

38) Rob Bishop (UT)

39) Mike Pence (IN)

40) Sandy Adams (FL)

41) John Mica (FL)

42) Sue Wilkins Myrick (NC)

43) Dan Burton (IN)

44) John Culberson (TX)

45) James Lankford (OK)

46) Mike Pompeo (KS)

47) Gary Miller (CA)
###
— Jennifer Drogus Communications Director Congressman-elect Rob Woodall
Seventh District of Georgia 202.225.4272 | jennifer.drogus@mail.house.gov

The FairTax may very well be the most important legislation of our time, but it will only become law through the persistent insistence of the people of this country. It’s not good politics, but it is good for the American people. Contact your representatives today insist they do what’s right for our Country! Here are those links again:

Use this link to easily find your congressman’s phone number ->  http://bit.ly/contactcongr

or

Use this link to send them a quick email. ->    http://bit.ly/ftcongress

Herman Cain – FairTax would supercharge US economy

Herman Cain, business man, political conservative, and possible Presidential candidate in 2012 talks about the ways the FairTax plan would supercharge the U.S. economy sooner rather than later.

  • The FairTax plan will replace the federal income and payroll based tax system with a simple, transparent and fair national retail sales tax.
  • You will bring home your entire paycheck, and then you decide when and how much you pay in taxes when you spend your money.
  • Taxes are assessed at the retail, or consumption, level so businesses will be able to compete globally.
  • The ability of politicians and lobbyists to manipulate the tax system to benefit themselves and their interests goes away under the FairTax plan.

The benefits of the FairTax plan are many, and the only way to make it happen is to get involved. Visit FairTax.org for more information or read the FairTax bill, H.R. 25, for yourself.

FairTax Repeals Federal Income Tax

The FairTax plan is intended to be revenue neutral, meaning that it is a tax system that replaces dollar for dollar the current federal income and payroll based taxes. The FairTax bill, however, goes one step further by calling for the repeal of the sixteenth amendment to the U.S. Constitution, which allows Congress to levy an income tax. Without the repeal of the sixteenth amendment we could eventually have both, a federal consumption tax and a federal income tax. So, the repeal of the sixteenth amendment is imperative and in fact is written into the FairTax bill, H.R. 25. If, for whatever reason, the sixteenth amendment has not been repealed within seven years of the FairTax being enacted, then the FairTax bill has a sunset clause that will eliminate the federal sales tax to ensure that we are not saddled with both forms of taxation.

How will the FairTax be collected?

Under the FairTax plan there will be no IRS. There will in fact be no need for the IRS because there will be no federal income taxes to collect or returns to file. Forty-five States today already collect sales taxes, so it will require no major adjustments for those States to also collect the FairTax. Have a listen as Denis Calabrese explains how the FairTax will be collected.