Americans For Fair Taxation
 

 

“All of the great leaders have had one characteristic in common: it was the willingness to confront unequivocally the major anxiety of their people in their time.” - John Galbraith

Presidential Support of the FairTax Bill

The FairTax is the most transformational piece of legislation in Congress right now and 67 co-sponsors have signed onto the bill with grassroots’ support!

But where do the presidential candidates stand on this issue of extreme importance to every American?

Now that Gary Johnson has been nominated to represent the Libertarian Party in November, we have a clearer picture of the candidates and their positions and have updated the Presidential Scorecard at FairTax.org/Scorecard.

Gary Johnson – Libertarian Nominee

Gary Johnson On his website the FairTax is a key issue:

“Abolish the Internal Revenue Service. Enact the Fair Tax to tax expenditures, rather than income, with a 'prebate' to make spending on basic necessities tax free. With the Fair Tax, eliminate business taxes, withholding and other levies that penalize productivity, while creating millions of jobs.”

President Barack Obama – Democrat Nominee

Barack Obama The White House launched a website for Americans to petition the government but distorted the FairTax in their response:

"In short, because it raises burdens on middle-class families and asks less from the most fortunate, this national sales tax is inconsistent with President Obama's principles for tax reform."

Ron Paul – Republican Party

Ron Paul While not supporting the FairTax legislation in the House, Congressman Paul says he is focused on other issues:

"I'm not a co-sponsor of that but I'd probably vote for it… But the big thing is, you got to cut spending.”

Mitt Romney – Presumptive Republican Nominee

His response to the FairTax is somewhat positive but his reservations lack any factual support:

Mitt Romney "That has a lot going for it... The study that's been done on it so far is that it tends to lower taxes a lot on the very high income people and then raise taxes on middle income people. And that's not a good idea. So I like the idea of a consumption based tax but it’s got to be structured in a way that it doesn't provide a windfall for the very, very wealthiest and a burden on middle income Americans.

Responding to Distortions with Facts

Dan Mastromarco, co-depeloper of the FairTax plan, penned a factual defense to the tired claims that the FairTax would increase the burden of the middle class:

“The Kotlikoff study [of the FairTax] examined 42 hypothetical families, including a middle-aged couple with two children earning $20,000, $70,000 and $500,000 per year…

The low-income family received an 86 percent cut in its average remaining lifetime tax rate; the middle-income family a 46 percent cut, and the high-income family a 42 percent cut.

The Fair Tax's progressivity is attributable partly to repeal of payroll taxes middle-income wage earners bear, and to the novel concept that government should not tax us before we have met our own sustenance. The Fair Tax totally exempts from taxation expenditures below the poverty threshold for all households.

But fairness is defined in many ways. Whether taxpayers have more money in their pockets after enactment is one common-sense definition. Another Kotlikoff study shows that low-, middle- and high-income households respectively experience a 26.7, 10.9 and 4.7 percent welfare gain.

Because the Fair Tax untaxes work, savings and investment, but taxes spending, it promotes economic growth, raises marginal labor productivity and real wages, creates jobs and encourages upward mobility. Neither study incorporated the more than $380 billion in compliance-cost savings from the Fair Tax."

But why the needless distortions of the FairTax? Why the misinformation when our current tax code continues its rampage through our economy and sacrifices new jobs to Washington’s tax games? Mr Mastromarco reminds us:

The FairTax movement presents presidential candidates with a choice they would prefer never to make: Pander to the corporate lobbyists on which their campaign contributions depend, or assume the political risk of a new idea that the special interests oppose.

Indeed. It’s our job to ensure they are forced to make this choice as publically as possible and are rewarded or condemned accordingly.

Thank you for your efforts to transform our nation!

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The FairTax in the News

Ex-New Mexico Gov. Gary Johnson wins Libertarian presidential nomination - MSNBC

The Libertarian Party on Saturday chose former New Mexico Gov. Gary Johnson, once a Republican White House hopeful, as its presidential candidate in the Nov. 6 election…

Johnson, 59, is running on a platform that includes slashing government spending to balance the federal budget by 2013, as well as ending the war on drugs, beginning with the legalization of marijuana. He also supports the so-called "Fair Tax," which would replace the income tax with a 23 percent national sales tax…

A Fair Tax for ProgressivesThe Huffington Post

Millions of Americans who recently endured needless hours of toil and stress completing tax returns want fundamental tax reform and relief from the oppression of the current tax code, which includes a $400 billion annual compliance burden and which even progressive economists concede is a national disgrace…

The FairTax is not a tax cut for the rich. By definition, "rich" people are those with high net worth and/or high lifetime income who consume a lot -- like Bill and Melinda Gates. People with high wealth and lifetime income who theoretically consume at the poverty level would not be materially rich but impoverished -- until they spend more commensurately with their wealth and lifetime income. Until they do, why would we want to tax away their investments (which presumably expand employment and global output) or their charitable contributions (which presumably direct aid to the least advantaged and most deserving)?...

The May FairTax Webinar

With Special Topic: Why we don't want 9-9-9 or any other modified Income Tax

When: Thursday, May 24, 2012

Time: 8 pm Eastern, 7 pm Central, 6 pm Mountain, 5 pm Pacific

Where: At your personal computer, anywhere!

Why: To provide an interactive forum for people who cannot get to local meetings to learn about the FairTax and to present special topics that are frequently misunderstood or not generally discussed.

Who: Join Marc Manieri, webinar producer and host from Orlando, Florida. In their fourth year now, Marc’s webinars draw national participation from seasoned FairTax supporters as well as those just getting introduced to the FairTax.

Join: To participate, register here and watch for the confirmation email. For more information contact Larry Walters at repeal_16@earthlink.net.

Featured Video:

FairTax senior strategist Denis Calabrese

How does the FairTax impact the middle class?

 Ways to Engage:

- Contact Congress

- Engage and get updates on Facebook

- Follow us on Twitter

- Find a local leader

- Distribute handouts

- Get FairTax gear

- Watch the webinar

- Send an e-card

- Join FairTax 2012

- Contact the media

- Get FairTax graphics

- Understand basics

- Join FairTaxNation

FairTax Fact:

The FairTax benefits all income groups. Of 42 household types (classified by income, marital status, age), all have lower average remaining lifetime tax rates under the FairTax than they would experience under the current tax system.

Featured Paper:

FairTax Fundamentals Paper

The FairTax: Fundamentals and Facts

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