Campaign to drop all federal income taxes

Manteca Bulletin

Imagine an America where the corporate income tax is reduced to zero.

Supporters of the Fair Tax Bill envision companies flooding the U.S. to set up shop while creating millions and millions of new jobs.

John Depue, who has been a Fair Tax advocate for over five years, estimates 16 million non-farm jobs opening in that first year.

As guest speaker at Manteca Patriots meeting at Chez Shari Thursday, he talked about the bill that would overhaul the federal tax code by replacing all existing income and payroll taxes with one-time consumption tax on new goods and services at the point of purchase.

“Corporations don’t pay tax, they pass the cost of the tax and tax compliance on to you and me in the form of higher prices for their products, lower wages for their employees or lower dividends for their investors,” said Depue, who is a volunteer district director for California’s 4th Congressional District.

After 31 years with the Department of Corrections and Rehabilitation, he retired in 2008, having served as a correctional officer in 1974 and, later, a chief deputy warden.

Depue noted that the Fair Tax Bill, if passed, would repeal the 100-year-old 16th Amendment, which allows for Congress to levy the income tax.

“The current system is broken,” he said, pointing out that the income tax code has ballooned to 80,000 pages.

“It’s taxation without comprehension – it needs to be replaced.”

The Fair Tax Bill is piece of Legislature – 133 pages, doubled space, according to Depue – that’s been reintroduced every two years since 1999. Support has grown every year since. At last count, he indicated that 74 Congressmen and eight Senators now back the tax reform.

Depue contends that lobbyists and politicians are against the Fair Tax Bill. “They sell loopholes,” he said of politicians.

The state tax would still exist along with the Affordable Health Care Act. “That’s a different fight for another time,” said Depue.

Among his key points, he noted the bill would:

• Eliminate all personal and business income taxes, payroll, estate and capital gains taxes.

• Create jobs and restore the ‘Made in America’ label by making U.S. products more competitive.

• Raise real wages by over 10 percent in the first year.

• Save Americans $400 billion wasted yearly complying with voluminous pages of tax regulations.

• Lower tax rates for all Americans and capture taxes from the underground economy.

• Provide monthly ‘prebate’ payments to all legal American households to offset taxes on necessities.

• End the sale of tax favors to the rich, politically connected, and special interest lobbying groups.

• Secure funding for Social Security and Medicare with a larger, more stable tax base.

• Raise the same revenue as the current system.

• Lower product costs by removing business taxes,

• Eliminate the IRS.

The bill has provision called ‘prebate.’ This calls for reimbursing every person living in the U.S. legally to receive money for a specific amount for the basic necessities, said Depue, who added that this could completely un-tax the poor while progressively add taxes to those living lavish lifestyles.

He hopes to the see the Fair Tax Bill become a reality. But in order to do so, Depue and other supporters of the bill are approaching the various Tea Party organizations including the Manteca Patriots.

“The first thing you can do to help out is to sign up,” he said.

His group is planning to do a Tax Day Rally on Tuesday, April 15, in Sacramento on the west steps of the State Capitol, from noon to 2:15 p.m.

More information can be obtained by logging on to www.ca4fairtax.org.

This article is published here.

 

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