Abolishing the IRS: The Case for a FairTax

An age-old issue surrounding every election is tax reform.  Our current tax structure is ineffective and detrimental, to say the least.  It discourages production, penalizes success, and rewards unemployment.  Most politicians simply speak in platitudes by generally offering to cut taxes.   Former presidential candidate Herman Cain had a plan in mind called 9-9-9.  While I didn’t fully agree with his plan, I immediately fell in love with one of the 9’s – a national sales tax.

A national sales tax is favorable over a progressive income tax because then, the American people are taxed for spending money, not earning money.   However, a national sales tax would only be effective if it completely replaced the federal income tax.  State sales taxes are unwavering constants and will continue to be used whether or not a national sales tax or a progressive income tax exists.  My biggest problem with Mr. Cain’s plan was that it included both a national sales tax of 9%, and an adjustment of the income tax to 9%.

The 16th Amendment of the Constitution allows for the federal government to collect taxes on income.  While this is an effective method for collecting money to fund the federal government, it is also damaging the free market economy.  The current system is based on progressive ideology straight out of Karl Marx’s Communist Manifesto.  Simply put, the more money you earn, the higher percentage you pay in taxes. In other words, those who work hard and become successful are essentially penalized by the government, who takes a higher percentage of the fruits of labor.  Inversely, if one doesn’t make as much money or, doesn’t work at all, the government doesn’t require the collection of  taxes, therefore, rewarding unemployment.

America needs to shift to a FairTax.  It is nondiscriminatory, and makes it difficult to cheat.  Most importantly, it would essentially abolish the Internal Revenue Service as we know it.  An end to the federal tax system would free up a myriad of time and money Americans normally spend on tax preparation.

According to official tax figures, only 53% of Americans currently pay federal income taxes. As President Obama and Vice President Biden have parroted, “we all need to have skin in the game.”  I couldn’t agree more.

Instituting a national sales tax would broaden the base of people paying taxes to include virtually every citizen, actually rendering it fair.  A national sales tax would also eliminate the underground labor market that plagues this country.  Millions of people, whether legal residents or illegal aliens, likely work “under the table” simply to avoid the taxes automatically withheld from every paycheck.

If I was allowed to keep all of my paycheck every week, I would be inclined to work more hours.  Besides promoting a solid work ethic that would result in a more prosperous economy, a national sales tax would change the perception of so-called “rich” people in this country.  Progressives don’t look at the fact that maybe someone became rich because they invented a life-saving drug that helped millions of people, or that they may offer a service that millions of people thoroughly enjoy.  Progressives only look at how wealthy they are, and then teach their followers to demand something from them.  A national sales tax would largely dispel this socialist thinking.  The large purchases of the very wealthy would not only create jobs, but they would effectively fund the legitimate functions of government.

I live in a country where the poorest of poor people are constantly being propelled to the top through their own intellect and labor.  If one has the desire to pursue the American dream, then they have the opportunity to succeed.  Throughout my years in school, I’ve always been told by the liberal instructors that the “rich” have “x” amount of wealth, leaving less for the rest of us.  Wealth does not operate like a fixed pie, where I can only have more if someone else has less.  Instead, in a free market society, we are able to create wealth through our own labor, whether that be intellectual or physical.

Benjamin Franklin famously said, “when the people find that they can vote themselves money, that will herald the end of the republic.”  This is not far from what welfare does.  Candidates that support keeping the Marxist income tax in place, as well as simultaneously promoting the expansion of the various entitlement programs, are continually re-elected. With that said, it should be noted that a dependent voter is a dependable vote for the Socialists trying to infiltrate America.

Jeffrey Max :: Texas Wesleyan University :: Forth Worth, Texas :: @JeffreyMaxxx

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Comments

  1. K. Hendry says:

    A “Fair Tax” would be great. But, the policitians would never allow it as they would no longer have control over us.

  2. I think you should read the fine print in Fairtax Fraud. You seem to buy into the hustle — that fairtax is a 23% retail sales tax that would replace all other fed taxes.

    I have offered 50,000 dollars for over a year to anyone who can show ANYTHING from Fairtax to prove it’s a 23% retail sales tax to replace all other fed taxes. If Boortz or Huckabee, or any of these other liars, don’t want the $, they can give it to you, or to charity.

    They don’t have to prove it works – at all. They just have to SHOW proof that it’s a personal retail sales tax of 23% to replace all other fed taxes. That’s what they claim it is. So show proof that is what it is.

    Is there any legislation that says its a 23% personal retail sales tax to replace all other fed taxes, including social security? HELL NO. That is the hustle, the BS, The legislation and fine print show something quit different.

    But you have to read it closely, and look at the tax tables, fine print, and footnotes. You have to read the “supporting” documents. About 80% of Fairtax has NOTHING to do with personal retail sales taxes!

    In other words the reality of the fine print is DRASTICALLY different than the hype. And you only know the hype. The hype is meaningless lies and distortions. You have to understand the fine print and legislation.

    Now, learn what Fairtax REALLY is — google Fairtax fraud or goofy fairtax. There is plenty out there exposing it. Even their own researchers exposed it as, essentially, goofy. http://fairtaxgoofy.blogspot.com/

  3. Not a bad article! I like it! A common piece of misinformation that the left likes to use against the Fair tax is that “Prices will go up putting a burden on the poor” What they fail to realize is that our progressive income tax now makes the cost of everything higher! Those taxes are figured into the price. What the also forget to mention is the fact that WE GET TO KEEP MORE OF OUR MONEY! And only pay the amount of tax we want to pay. But our current tax system is a means of control for our elected officials so it is not going to go away without a fight.

  4. Hmmm,,,,Really? says:

    I would agree that a national sales tax would be fair, however with this caveat. Corporations are really treated as people and pay the same percentage of tax as people and are charged a sales tax every time they spend money, even when they purchase materials, services, or labor.

    The problem with the conservative view of taxes is that you want to tax individuals, rather than money. If you really wanted a fair tax you would want a currency exchange tax or transaction tax that would take a small bite out of every movement of money, Buy a stock, pay the tax, transfer funds from one account to another, pay the tax. Buy milk, pay the tax, pay rent, pat the tax, make a payment on your house, pay the tax.

    Then we would truly tax the impersonal, the money. And since no person is taxed, just transactions, it would be ultimately fair.

    This way those that use more of the currency will pay for the privilege of using the amount of currency they wish to use. Tax the money, not the people.

  5. It will be a sad day when people wake up and understand the significant difference between INCOME and WAGES then soon realize they have been duped for decades because of their complacency and apathy to step-up to the plate and take a stand against being ripped-off by the Federal Government, Inc.

    INCOME is what a company brings in for producing goods or services. WAGES is what is paid to employees IN EXCHANGE FOR their labor.

    Now, here’s the trick. either pull out a most recent copy of the IRS Code and locate the words; INCOME and then WAGES. Then explain HOW the federal government can place a tax on your WAGES?

    To top off this little tid bit is to now look-up and understand the word APPORTIONED. Now go back and read The Constitution of the United States. Or, if you want to do things the easy way, just watch Aaron Russo’s: “AMERICA – Freedom to Fascism”.

  6. There are a lot of advantages, as you outline. One BIG issue you’d have to find a solution for is people who have saved up after-tax money for retirement. I’ve already paid 30% + tax on it, now you’re going to federal tax me again every time I buy something.
    That’s not gonna work.

  7. Everyone keeps talking about taxes . . . what about the government doing with less for a change. The problem with any new tax is that it rarely replaces an old tax like everyone wants, it generally goes hand in hand with the tax it was supposed to replace. I have a lot of trouble giving the federal government the ability to tax something else.

    And I totally agree with Gregory about income and wages. Also, no where in the IRS tax codes is the personal “income” tax mandatory, can’t find it.

  8. The Theory is Great, however the probability is minuscule. The entire accounting industry and a great many attorneys make their livelihoods from the current system.

    The best you can hope for is adding the sales tax and some minor changes to rates and levels to the existing system.

    There are so many ways to cut the budget that are simple but for a politician who is only about getting re-elected there is no benefit to doing things simple.

    Revolution is about the only solution…

  9. I couldn’t agree more! I recently read “The Fair Tax Book” and was blown away. The American people have been so manipulated by the government by way of the tax code, ESPECIALLY withholding. I was hoping to see a candidate adopt the Fair Tax, but so far it doesn’t seem to be able to pick up steam, mostly because it is widely misunderstood. People hear increased sales tax and assume they would still be obligated to pay a federal income tax.

  10. With all that said, I suppose this would be a good time and place for you to show evidence that you actually have $50,000 in trust or some sort of account to actually give away?

  11. Jeffrey, you lost me when you said this: ” Inversely, if one doesn’t make as much money or, doesn’t work at all, the government doesn’t require the collection of taxes, therefore, rewarding unemployment.” Didn’t you mean to say the government doesn’t require the same amount of taxes? It sounds like you are saying if you make less money or if you draw unemployment, you are not taxed. This is blatantly wrong. There was an exemption of the first $2000 of unemployment to not be taxed, but this expired two years ago. All unemployment benefits are taxable. Lower incomes are taxable, albeit at a lower rate than higher incomes. If one makes less than the total of his standard deduction plus his personal exemption amount, then his tax is zero, but only then. Not many people can live on $5800 plus $3700 who make mortgage payments and pay all the other expenses of living (utilities, food, upkeep on the house, the list goes on and is too long to mention here) by themselves without help from a spouse or family. I am surprised no one else caught this.
    You also said something else I have an issue with. ” If one has the desire to pursue the American dream, then they have the opportunity to succeed.” Just what do you call “the opportunity to succeed?” I would like to know. You make it sound like all one needs is the desire to pursue the dream, and the rest will fall into place. Nothing could be farther from the truth. If it were true, look around brother, we’d all be millionaires. Opportunities don’t just happen. You have to prepare for them, be ready for them, work for them, and create them yourself. Nothing just happens.

  12. Hmmm,,,,Really? says:

    Inherently people really want to be assured equality of opportunity, Opportunity is not results. No one in their right mind wants a guarantee of equal results.

    I find it really interesting that the wealthy and the financially successful today actually became such in a system of progressive marginal tax rates. Yet they want to change that system to a flat tax and somehow they get the “not yet achieved but want to” class to believe there is something wrong with progressively paying more as your capacity to attract money increases.

    It just sounds like greed to me.

  13. Keith Totherow – Many people actually do survive under that economic constraint, which leads us in to another discussion, welfare and our Welfare President, which the author did not write about in this specific article.

    Taxsanity – If you had a spare 50 g’s sitting around the house, i doubt you’d be totting it around on a college online newspaper as a challenge, but I digress.

  14. jeffreymax says:

    Keith, I never wrote about anybody collecting unemployment. I simply stated that if they were unemployed (no job), then they don’t pay income taxes, as there is no income to tax. You insinuating that they are collecting unemployment is a misinterpretation of my article.

    And I cannot even respond to the second point of yours until you can prove to me that you understand what the word “opportunity” means. I think you have it confused with the word “guarantee.” They sorta rhyme at the end, so I can understand how you might have gotten them mixed up.

  15. Joseph, what are you talking about? I said not many, you said many. The only way to know what is right is to take each individual case and add up the expenses. Mortgage payments are the big unknown here. I have kept meticulous records of all my expenses for most of my life. I know what it takes to live, and what it takes to survive. Surviving means buying nothing but bare necessities, which means no clothes, no upkeep on the house, except when something breaks, then you have to borrow for it. NO going out.
    I said it takes more than $9500 a year for all the utilities, mortgage (there’s that big unknown amount again-mine is $518 a month, and that does not include any mortgage insurance [I have none] or property tax. I pay that all at once at the end of the year-$606) and food ($180 a month). Nothing else is a necessity, except the Internet. You might say it’s not, but without it I would have to go the library to use the computer for job hunting, which would mean higher costs for gas and upkeep on my vehicle. As it is now, I drive as little as I can, and have kept my gas expense under $500 a year since I got laid off. I use a magicJack for my phone expense that might be long distance, which cost $39 for the jack and $69 for 5 years of service. I own no cell phone, never have, as I have no reason to. I know of no other way to have cheaper long distance than $14 a year, do you? If I want to speak to my relatives, I need long distance service.
    I won’t bore you further with more details. Please tell me what you meant by what you said. I have not gotten food stamps ever. If I had I would know how to call it now. EBT, isn’t it? I don’t count unemployment as welfare, there’s a big difference, but you may be. Unemployment is very limited, depending on the state you live in and the current federal laws. And you have to have worked enough in the base period to qualify. I worked nearly 12 years this time without a layoff like was common during my time at GE.

  16. Jeffrey, I definitely misunderstood your statement, if you didn’t mean it the way I took it.
    ” Inversely, if one doesn’t make as much money or, doesn’t work at all, the government doesn’t require the collection of taxes, therefore, rewarding unemployment.” You still said that the government doesn’t require the collection of taxes if one doesn’t make as much money. It does. Look at the tax tables. If you make $5, the tax is $1. Is that not taxing the income?
    Your statement is misleading. Not requiring taxes is not rewarding unemployment. It’s called an income tax for a reason. It’s based on income. If you have no taxable income, there is no tax. You’ve got a strange way of looking at it.
    Your last statement sounds like an idiot. Don’t talk down to me. I was in the top 2% of students in this country before you were born. If you have something intelligent to say, proceed. Otherwise, forget it. Don’t lose your opportunity to debate with me.
    op·por·tu·ni·ty
    noun, plural -ties.
    1. an appropriate or favorable time or occasion: Their meeting afforded an opportunity to exchange views.
    2. a situation or condition favorable for attainment of a goal.
    3. a good position, chance, or prospect, as for advancement or success.

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