Americans For Fair Taxation
 

 

"Think simple" as my old master used to say - meaning reduce the whole of its parts into the simplest terms, getting back to first principles. - Frank Lloyd Wright

What's Worse Than Paying Income Taxes?

Every time you see your smaller paycheck or send more earnings to Uncle Sam in April, do you wonder what could be worse than your income taxes?

It gets much, much worse.

The damage politicians inflict on our nation because of their faithfulness to a corrupted tax code and the power it brings, goes far beyond just paying taxes.

What it costs Americans to simply figure out how much money to send to Washington is astronomical and to add insult to injury, the more complicated our tax system grows, the fewer pay and the higher your tax bills climb! 

To begin, compliance costs are defined as the total time or money that must be expended by businesses and individuals in their struggle simply to calculate substantiate and pay the taxes owed.

A recent study shows that U.S. taxpayers waste an astounding $431.1 billion annually on tax compliance. That means that we pay about 30 percent of our total income taxes Washington receives, just to be able to pay them!

How large is $431.1 billion? Its more than the dollar value of all the goods and services produced in 42 individual states, such as Michigan or Virginia and even the nation of Saudi Arabia!

Total Compliance in Billions

But Congress inflicts still even more damage from our out of control tax code! As recent FairTax.org testimony stated:

"Furthermore, the estimate of $431.1 billion in tax compliance costs does not include any of the behavioral changes that misallocate resources from their most economically efficient uses toward their most tax-efficient uses.

And it does not include the fact the compliance expenditures themselves reallocate resources away from hiring, reinvestment, plant or equipment, research and development and other productive activity; to fund an industry of tax attorneys, accountants and financial planners that itself produces nothing that adds to our economic well-being.

Nor do these compliance costs measure the lost economic opportunities due to the uncertainty created by our complex tax code. Research has found a strong negative relationship between economic growth and several policy uncertainty variables."

All these outrageous attributes of our current federal tax code produce another ominous statistic. For the latest year available, the amount of taxes owed but not reported or paid, totals $450 billion!

Who will continue to make up for those who do not pay their share of taxes if we do not pass the FairTax legislation?

You will.

The Grassroots Spotlight: Online Activists

This week MSNBC ran an online poll that asked Americans, "How would you improve the tax code?"

Even though the FairTax itself wasn’t a voting option, “Eliminate the income tax and create a national sales tax instead,” ran away with the vote with thousands of FairTaxers taking action!

Also, many comments directly spoke to the transformation the FairTax legislation would bring to our nation.

To make FairTax a household word and the only legitimate option for replacing the current tax code, we will continue to take advantage of every opportunity to voice our opinion. If we don't speak out, nothing will change in Washington. 

Thank you!

If you haven’t voted yet, go to FairTax.org/Vote!

The FairTax Graph of the Week

Pages of Federal Tax Law 2011

The FairTax in the News 

Best Case for a Flat/Fair TaxFox Business

The I.R.S. out with a big report today, charging many of us are scofflaws when it comes to paying our taxes.

In fact, we've underpaid our taxes by 17 percent. That's right -- the I.R.S.’s "tax gap" resulted in tax collections 450 billion dollars below what they should have been…

What we really need is a tax code that people feel is fair -- a tax code that people are more likely to comply with. A simpler tax code.

The sheer fact that nearly half of Americans pay no income taxes at all adds to that feeling the system is unfair and that some people have to pay and others don't at any later…

This new report is the best argument for a flatter, fairer tax code in this country, even the I.R.S. admits that.

Simplify the code, make it more effective and compliance might not be such a joke!

'Fair Tax' deserves to be considered, not ignoredNews-Sentinel

…If you have the stomach for real tax reform, the 63-year-old retired salesman suggests, try chewing on the “fair tax” – a proposal that was first introduced in Congress 13 years ago and would replace all federal income and payroll taxes with a national sales tax advocates say would be about 23 percent….

“Money is power,” Armstrong said, and he's right: Think of all the ways politicians use taxation to influence your actions or in effect punish and even discourage success by targeting successful corporations and individuals…

“There two types of people who oppose this: Those who don't understand it and those who do.” Armstrong said. Most presidential contenders are simply silent, but in the latter camp are those committed to the politics of envy and class warfare – the overdue elimination of which would be among the fair tax's greatest achievements…

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Good fight

Some things are worth a good fight!

Ways to Engage:

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Featured Paper:

Good for taxpayers, businesses, economy

What the federal tax system is costing you besides your taxes!
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Americans For Fair Taxation is a 501(c)(4) non-profit organization. One provision in the  70,000+ pages of the federal tax code makes investments in your non-profit FairTax organization non-deductible. If you would like to send a check or credit card contribution by mail please download and print our contribution form here.

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