Why the Fair Tax Beats the Tar out of the Income Tax

in Economics/Politics

If you haven’t seen “UnFair the  Movie”, I highly recommend getting the DVD.  John Sullivan, the same producer of “2016: Obama’s America” and “Expelled:  No Intelligence Allowed”,  took the unfair title from the language of the left.  Polling shows that Americans respond very favorably to the term unfair.  UnFair the movie was released “Michael Moore” style with a  great  grass roots promotion of this documentary which focuses on  the abuses of the IRS.

What we have here is an IRS which is not about revenue but  about intimidating and harrassing people and is all powerful controlling our politics, faith and the economy.  The current system is not just unfair,  it’s immoral.  It  violates at least four areas of the Constitution.  First  amendment religious and political expression is violated by the “Johnson Amendment” which seeks to regulate churches and 501c organizations via their tax exemption status.   The fourth amendment guarantees the right to privacy- yet we have a totalitarian IRS which says you have 2 weeks to give us all of your personal info for an invasive audit.  The Bill of Rights also guarantee the  right to a jury trial and innocence until proven guilty.  Not with our “friendly neighborhood” tax man which makes you jump through all of their hoops and then you are assumed guilty and have to prove your innocence at great expense to yourself. freedomofspeech

While the movie touches on the basics of the Fair Tax(HR 25) as an alternative way to bring in revenue, I want to take a look at how it compares to the current tax system or a flat income tax.  There really is no comparison, the Fair Tax blows away the commie inspired tax on the fruits of our labor.

American roots:  First of all, a  national consumption tax is more compatible with the vision of  our Founding Fathers as it is less coercive and has a built in limiter.  In Federalist Paper 21, Hamilton notes that if the taxes get too high, people don’t buy the product and revenue drops.   On the other hand, the progressive income tax was number 2  on Karl Marx’s communist manifesto  and was constitutionally banned by the Founders until 1913 and the 16th amendment which started out as a “soak the rich”  flat tax.  Karl Marx wanted to redistribute wealth and discourage productivity via the tax system and would be proud of the IRS.

Simplicity:  The original flat income tax has evolved into 72,000 pages of confusing codes given by politicians to help their friends and hurt their enemies.  The Fair tax is more transparent at  133 pages and would only require about 20 million tax filers  while reducing compliance costs by 90% saving the economy 250 billion annually.  That’s one trillion injected  into our economy over 4 years that could go towards something productive rather than filling out paperwork that will sit in a warehouse.

Fairness: The prebate untaxes the poor and gets rid of regressive  payroll taxes and brings trillions from the illegal underground economy into the tax system.  It also gets the government out of regulating religion and  speech and violating our 4th amendment right to privacy.

Reform:  Abolishes the IRS and the 16th Amendment thereby removing crony politicians from the business of picking winners and losers in the economy.   Currently corporations which can afford to lobby Congress give themselves huge tax breaks over their small businesses competitors  who are hurt by this type of corporate welfare.  In addition, it makes our taxes transparent and will help to keep our representatives more accountable as consumers will see how much their government costs them every time they make a new purchase and they will tell their representative to vote NO a lot more often.

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Grows the economy: IRS punishes productivity and discourages labor, manufacturing and investment.  Under HR25, America becomes the world’s largest tax haven and manufacturers will swarm back to our shores as evidenced by polling of major overseas companies.   Investors and corporations will go from being the highest taxed in the world to paying zero taxes.  Unbeknownst to Hillary, businesses actually are the only engine  creating jobs and making the economy work and they should not be penalized because of their success.

The Fair Tax get’s rid of the 22% embedded income tax costs on all American made products.  No more competitive advantage for imports  while hurting our exports.  By leveling the  playing field, American manufacturers would have a renaissance of expansion  and it is WTO compliant.   If other countries adopt the fair tax first, they will gain a huge advantage and we will have to play catch up.

The time has come for Lois Lerner and the other thugs in the IRS to be abolished and replace that corrupt crony regime with a tax system that will bring America accountability, growth and above all fairness.

 

Mr. Hannosh is an Army Veteran, Former School Board President, History/Biology Teacher, Real Estate Agent, Former Candidate for Congress in California's 8th district, Pat Buchanan, Ron and Rand Paul supporter and activist seeking to put Americans first, not the establishment. Mr. Hannosh is married and has a daughter who he hopes will inherit an America that loves peace, liberty and freedom.