"The tax rate of 35 percent is impossible to provide an incentive to the large corporations, that have $1.7 trillion offshore, to put their money back in the United States." - Frederick W. Smith
"The U.S. Is Alone" And Why It Hurts
In March of 2011, Pfizer Pharmaceutical CEO Ian Read told
The Wall Street Journal, "There should be a tax rate that allows us to
compete... in the global marketplace."
Later that year, H.R. 25, “The FairTax Act” co-author and
economist Dan Mastromarco testified before the Joint Economic Committee that
America’s corporations were paying “a national statutory marginal [tax] rate of
35 percent, which masks the fact that the return on capital is taxed
repeatedly. These rates impose efficiency costs of as much as $728 billion.”
added, “The U.S. is alone in applying its punishing rates – the highest in the
OECD and 50 percent higher than the average OECD rate of 23 percent -- to
domestic and foreign earnings alike.”
Congress failed to heed these and other warnings and as a
result, a flood of companies has continued move their production and
headquarters operations outside the United States.
In fact, after 165 years, America’s pharmaceutical giant Pfizer
with British competitor AstraZeneca and moving their headquarters offshore to
avoid our punitive, corrupt and totally politicized income tax system; a tax system
that Congress continues to protect with the fervor of a mother bear standing
guard over her cubs. A system Pfizer itself helped create with an army of the
best loophole lobbyists their earnings could buy.
Adding insult to injury, this week Financial
Times made national news with their headline story, “China poised to pass US
as world’s largest economic super power this year.”
And yet, Congress continues blindly advocating politically
polarizing, pro-income tax economic policies that are driving this nation and
her people straight into the economic ditch.
There is a tough love solution to this problem that eliminates
the primary enabler of Washington’s lust for power, greed and control. That solution
- the FairTax® Plan.
The FairTax eliminates all forms of taxation on income, funds
the federal government from a national sales tax on new goods and services
only, and provides eligible taxpayers with 12 monthly, Prebate checks to
purchase essential goods and services tax-free.
This provision provides
a significant windfall for low-income families who will take home the full spending
power of their entire paycheck. The FairTax also disbands, defunds and
eliminates the IRS in its entirety.
Just as importantly, the FairTax will negate corporate
America’s need to move offshore in order to avoid America’s punitive
It is past time that corporate executives turn their focus away
from the special interests, loophole gravy train of the past and present, and
towards the economic
boon they can enjoy when the FairTax is enacted.
This is where you have a tremendous opportunity to make a
major difference for the FairTax campaign.
You are corporate America’s customers – you buy their
products and services. And unlike our Congress that only seems to respond to
special interests and large donors, corporations do listen to the lifeblood of revenue – the customer.
Think about your favorite products and or services and make
a list of your five most favorite, publicly traded corporations. Go to the
company’s website investor page and you will find the name and mailing address
for their executives and board of directors.
Take a few moments and write some good, old-fashioned snail
mail notes. Share why you support the FairTax and why they should too. Send
them a copy of Dan Mastromarco’s white paper, “The
FairTax: The Key to Restoring America’s International Competitiveness,” which
you can download on the right hand side of this newsletter under “Featured
Document”. The mere fact that you send a note through the mail will get their
And let us know if you get a response. If possible, send us
a copy your outgoing note. You can send this to firstname.lastname@example.org or AFFT, PO Box 27487,
Houston, TX 77227-7487.
It is indeed painful to read today’s business headlines. America
is hungry. She needs jobs, she needs her
corporations brought home and she needs our getting the FairTax enacted.
Finally, please help us keep the bonfires of FairTax economic
freedom burning by sending your most generous donation as
we continue our quest for simple and fair taxation for all.
Yours in the FairTax,
PS: Special thanks to
Earl Long, President of the FairTaxKC, for his outstanding assistance in
preparing this article.
Accelerating, Taking Jobs with Them – Tax
It’s been a busy week
for corporate mergers and acquisitions, many of which appear to be driven by
the extremely high U.S. corporate tax rate and the desire to get out from under
Another factor is that most developed countries outside the
U.S. have a much better treatment of multinational foreign earnings. These
countries use a territorial tax system that largely exempts foreign earnings of
multinationals from domestic taxation, leaving them to pay corporate tax only
in the countries in which the profits are earned. The U.S., in contrast, tacks
on an additional repatriation tax if foreign earnings are brought back to the
U.S. This is known as a worldwide tax system… Only 5 other developed countries
tax multinationals on a worldwide basis, and none of them at such a high
corporate tax rate.