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Chairman’s Report - December 20, 2019

Chairman’s Report - December 20, 2019
Photo Credit: Steve Hayes by is licensed under
An Unnecessary Solution
To A Problem
They Created


If you are like 99.9999% of people who spend their life trying to do productive things, the idea of spending countless hours trying to create a very complex solution to a problem you created is so preposterous it's hard to understand.

You would think the tax community has just received an early Christmas present from the way they are all gushing about the just released Treasury regulations regarding the treatment of global intangible low-taxed income, or GILTI.

These are not final but are close to what the final regulations will be.  These regulations are needed because, like most tax laws, this portion of the law is very vague and general.  Without these regulations, tax professionals aren’t able to charge huge amounts of money to give advice which might be correct.

According to Gordon Gray writing for the American Action Forum:
 
  • GILTI is a new provision of the 2017 Tax Cuts and Jobs Act
 
  • GILTI is defined as income in excess of what policymakers determined to be a normal rate of return (10%) on tangible assets
 
  • Taxpayers reporting GILTI face effective tax rates of at least 10.5% through 2025 and 13.125% thereafter on GILTI income
 
  • While the definition of GILTI may capture high-return intangible income, it really captures any income irrespective of its source in excess of what ("The Ruling Class" & "The Swamp") decides on the rate of return

Just what problem was this complicated provision intended to address?  Some corporations have been lawfully avoiding the U.S. income-tax by keeping money offshore and not paying U.S. tax.  This was perfectly legal under the old tax-code but now, certain income will be taxed in the U.S. at a minimum rate.

This change is intended to make it less profitable for U.S. companies to keep income earning assets overseas and “encourage” them to bring them back to the U.S.

If you start trying to read the proposed regulations for GILTI, you’ll quickly see only the most astute tax advisors can comprehend them.  You’ll also see many hours will be spent, and there will still be issues which will have to be litigated.  The few people who really “seem” to understand these rules will be sought out and paid immense amounts of money.

All of these very bright people will not be devoting their energies to improving the well-being of the people of the world, but instead will be draining huge amounts of time and resources to solve a problem which shouldn’t be there in the first place.

The FAIRtax eliminates any reasons for U.S. companies, or any companies from any country for that matter, to keep money outside of the U.S.  In fact, what sane multinational corporation will want to base its operations in a jurisdiction charging even a 10% tax on their earnings when they could come to the U.S. and pay no tax because with The FAIRtax, there would be no corporate income-tax.

The savings of taxes and compliance costs could be devoted to making better products at lower prices, something a competitive economy requires.

Think of the outrage in the other capitals of the world when there is a mass exodus of companies based in their country to the U.S.  But also think of the way these other countries will have to rethink their own tax systems in order to compete.

Would not the entire world benefit from a sane tax system?  Of course it would!

 
Conclusion


Despite overwhelming evidence to the contrary, the D.C. “Ruling Class” and their minions sincerely believe they have superior understanding and knowledge. They live in a bubble in which only people like them are allowed to enter.  They sit in that bubble and look out at the rest of us and shake their heads in pity.  The only people they listen to are people like them who continually reinforce the idea they and they alone should decide what’s good and bad.

If they see people objecting to the way the income-tax-system unfairly rewards companies, like Apple, who keep large amounts of money offshore and are finally forced to address the problem, they simply make it worse.  Like most of the things they do to shore up a corrupt and broken income-tax system, their solution only makes the matter worse.

It’s like saying, “The operation was a success but the patient died”.

They aren’t interested in our health and well-being.  They believe it’s enough to not really fix the problem, but to make a lot of noise and say with pride they “addressed” the problem.  The word “addressed” is used in most of their statements because even they can’t, with a straight face, say the problem is “fixed”.

Isn’t it time we demand our elected representatives actually “fix” the problem?  Trying isn’t enough, particularly when the solution is so simple.  The FAIRtax—the only “Fair tax”.

Let’s energize the entire United States and show people they will control the amount of taxes they pay.  Pass The FAIRtax—the only “Fair tax”!

It's time for Congress to have serious discussions about replacing the FAILED income-payroll-tax-system with The FAIRtax, the only truly "Fair tax"!

The author George Bernard Shaw said these words in a play he wrote, You see things; and you say “Why?”  But I dream things that never were; and I say “Why not?”

Isn’t it time for us to ask, “Why not?” 

President Trump, “Embrace the FAIRtax, the only Fair Tax the only fair tax and the only real tax reform!  Stand up to the Swamp.  They will oppose you anyway because they see you as a threat.  What have you got to lose?”

The truth is the truth.  Remember, if we don't continue to tell the truth and demand a change, then this quote from George Orwell's 1984 may foretell our children's future:

“If you want a picture of the future, imagine a boot stamping on a human face—forever.”

Take Back America Again!  Pass The FAIRtax Now!
 FAIRtax Online Resources
 
Americans For Fair Taxation - Home Page
Americans For Fair Taxation - Facebook Page
Americans For Fair Taxation - YouTube Channel (The Chairman's Report is now posted here)
Americans For Fair Taxation - Twitter Page
Americans For Fair Taxation - Chairman's Report Podcast on Spreaker posted Fridays at 6am-ET
Americans For Fair Taxation - Chairman's Report Podcast on Apple
Americans For Fair Taxation - Chairman's Report Podcast on iHeart Radio

Official FAIRtax Logo Store
 
The FAIRtax Guys - Home Page
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The FAIRtax Guys - YouTube Channel

PopVox - The People’s Voice On All Things Legislative
Read Evasion Study Summary
The FAIRtax Guys
Ron Maiellaro & Bob Paxton perform their FAIRtax Power Digital-TV Show & Podcast.  When the show streams to Facebook, The FAIRtax Guys plus a few AFFT experts are responding “live” to your comments and questions.  A free app is available for iOS and Android.  

Digital TV:  Tue-8PM-ET Americans For Fair Taxation - Facebook Page
Podcasts:   Tue-9PM-ET Posted on Spreaker, Apple Podcasts & iHeart Radio.
Digital TV are available on The FAIRtax Guys

This week's Episode #191 - " The Declaration & The FAIRtax"

When in the course of human events, we find ourselves with an impossibly complicated and convoluted tax system, there’s only one thing to do - ELIMINATE it!

Pop Quiz!  Which tax system aligns more closely with The Declaration of Independence, The US Constitution, & The Bill of Rights - the current federal-income-tax or The FAIRtax?

In this week’s episode of FAIRtax Power Radio, The FAIRtax Guys tackle this question point for point and clearly demonstrate why The FAIRtax would have been coveted by The Founders of our country and The Framers of The Constitution.

The FAIRtax more closely aligns with the concept of individual sovereignty and restores a proper relationship between We-The-People and OUR governments.  Watch and/or listen to this episode to get a better understanding of how far we have strayed from our founding documents and how we can fix the problem.

Enjoy this week’s show as The FAIRtax Guys light up the tax debate with more great information.

There’s always more in FAIRtax Power Radio such as a reminder of the promotional items available now at Our Store and a review of Jim Bennett’s Grassroots Corner Report.
 
What Can Each Of Us Do?
 
Call the local and DC offices of your Representative and 2 Senators.  Use the following script:
 
  • I am sure Representative ____ or Senator ____ is in favor of everyone obeying the income tax laws.
  • After they assure you their boss is not in favor of anyone breaking the law, ask if they are aware of the Cebula study showing $9 trillion of evaded income-payroll taxes over the next 10 years.
  • Since most will say they don’t believe their boss has seen the study, drop off a copy, email a copy or click Read Evasion Study Summary and copy/paste the link into an email.
  • Say you are going to call back in a week and ask what the Representative or Senator is going to do to stop this evasion.
  • In a week, call back and ask specifically what the Representative or Senator is going to do to enforce the law.
  • They probably will say their boss believes simplifying the income tax will handle the problem.
  • Explain, when people evade income taxes, they are also evading the 15.3% payroll/Medicare tax and state income tax.  So, it’s unlikely they are going to pay 30-40% when they were paying 0% because they have already decided it’s okay to cheat.
  • Say, the only way to reduce evasion is to increase by tens or hundreds of thousands the number of comprehensive IRS audits done each year.
  • Point out Evaders do not self-identify by putting an “E” on their income tax return.
  • 80% of the people likely to be audited are trying to comply, but they will be forced to endure these IRS audits as well.
  • Ask if the Member is in favor of this?
  • If they say no, then ask again how the Member proposes to stop people breaking the income tax laws.
  • Then explain the way to handle evasion without unleashing the IRS audits is The FAIRtax.
  • If you meet with your Representative or attend a town hall and ask these questions, you will be even more effective.

American's Big Solution - The FAIRtax Primer America Needs
 
Hard to believe but there still are people who have not heard of The FAIRtax.  For those people, America’s Big Solution provides a starting point in their study of The FAIRtax and is meant for any age.
 
America’s Big Solution is an introduction to The FAIRtax written by Terry Tibbetts, author of “A Spartan Game: The Life and Loss of Don Holleder”, with help from Ron Maiellaro, President The Florida FAIRtax Educational Association.  You can buy an electronic version for only $2.99 for the Amazon Kindle, the Barnes & Noble Nook and Apple iOS.  You can purchase a print copy at the same Amazon link above for $9.25.
Thank You for Opening The FAIRtax Chronicles, Our Sponsored Mailings
 
We plan to do several of these mailings each month. If you take a minute to open the sponsored emails and click through to the website, you are making an in kind contribution to AFFT. It is not required to actually make a purchase, but your minute of time will ensure AFFT is paid ever larger amounts from people paying for us to send their offers to our Supporters.
 
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Thank you for staying FAIRtax strong!
 
Yours In Liberty!
Steve Hayes
Chairman, Americans For Fair Taxation


 

 

 

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