The Chairman’s Report February 16th, 2024

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  • Source: FAIRtax
  • 02/16/2024

D.C. AND IRS DOUBLE TALK AGAIN—ORDINARY AMERICANS DON’T BELIEVE YOU


Seal of the United States Internal Revenue Service.svg
 
IRS Says Tax Enforcement Pays for Itself—and Then Some

This is the title of an article in the Wall Street Journal on February 6, 2024 which documents the attempts by the IRS to justify keeping the $80 billion appropriated by Congress.  

The article states:
 
  • In 2022’s Inflation Reduction Act, with no Republican votes, Congress gave the IRS nearly $80 billion to spend over a decade. Most of the money went to enforcement, but some of it was dedicated to improving the agency’s outdated technology and expanding taxpayer service. The idea was to reverse a decade of declining audit rates and focus enforcement on corporations and high-income households.
  • The Internal Revenue Service boosted its estimates of its own value, projecting that Congress’s recent expansion of the agency will generate $561 billion in tax revenue, higher than earlier Biden administration forecasts. 
  • The updated figures from the IRS and Treasury Department reflect new research on how audits can deter tax cheating for many years. The agencies now project that the average return on investment for enforcement spending is about $6 for every $1 instead of the original $5 for every $1. And they also now include the effect of modernized technology that should help the IRS detect tax dodging and encourage voluntary compliance by making the system smoother. 
  • Tuesday’s report (from the IRS) said that continued funding would bring the total revenue collections to $851 billion through 2034. 

DOES ANYONE BELIEVE THE IRS IS DOING THE RIGHT THING?

In the February 8, 2024 Unleash Prosperity Hotline (CTUP), Steve Moore, one of our Americans for Fair Taxation Advisory Board members, shared information about the percentage of people who trust the federal government to do the right thing.  

Here is a summary of the information:

2) Do You Trust the Government To Do the Right Thing Most of the Time?

The Wall Street Journal published a chart yesterday showing that only 16% of Americans trust the government’s competence. That’s the lowest percentage who have trusted the government in six decades.

Contrast that result with our CTUP poll of cultural elites and Ivy League graduates. We found that 70% of elites trust the government to do the right thing “most of the time” and an even more astounding 89% of Ivy League super-elites do.

CONCLUSION

Americans agree:
 
  • Everyone should pay their share of federal income/payroll taxes to fund our government.   
  • It is unfair for people to cheat and make the rest of us pay their share of federal tax obligations.
  • If you are going to keep the present corrupt income/payroll tax system, the estimated 20% of federal tax filers who engage in illegal evasion need to be audited and made to pay their federal taxes.
  • Unfortunately, tax “cheaters” don’t self-identify—in fact they work hard to appear legitimate and hide the fact that they are cheating.
  • Only the brain-dead bureaucrats in D.C. justify catching the “cheaters” by having the IRS harass the 80% of us who do our best to meet our tax obligations honestly.
  • It is time to scrap the income/payroll tax system and replace it with a system that doesn’t rely on tax returns and doesn’t need an all-powerful Federal agency to administer and enforce it.
Since the real solution, replacing the present system, makes so much sense, why do the D.C. bureaucrats cling to the income/payroll tax system?  The answer is linked to the surveys cited above:
 
  • While only 16% of Americans trust the government to do the right thing, 70% of elites trust the government to do the right thing “most of the time” and an even more astounding 89% of Ivy League super-elites do.
  • The Biden Administration is mostly composed of elites and super-elites.
  • The elites want to use the power of the government to give them control over every aspect of our lives.
  • To them, harassing the 80% of honest taxpayers is perfectly logical and justified because the IRS may collect $851 billion in the next ten years—more than 10 times the $80 billion allocated to the IRS.  
  • They ignore the fact that the former IRS Commissioner said that $1 trillion is being evaded each year.  So, even if this stepped up enforcement brings in the full $851 billion over ten years, that would reduce illegal evasion by less than 10%.
  • The elites are fine with this massive expansion of the IRS because it accomplishes two of their most sacred objectives—increasing the size and power of the federal bureaucracy, and creating more government jobs.  
IT IS TIME TO SAY TO D.C.—ELIMINATE ALL OF THIS NUTTY THINKING AND ADOPT THE FAIRTAX!

More importantly, why are we going to tolerate further invasions of our personal privacy just to allow D.C. to prop up a corrupt and broken income/payroll tax system when adopting the FAIRtax will:
 
  • Eliminate the IRS and the need to file any personal income tax returns.
  • Be border adjustable and bring well-paying jobs back to the U.S.
  • Grow the economy much faster than the income/payroll tax system.
  • Permanently fund Social Security and Medicare.
  • Eliminate the regressive payroll tax and replace it with a progressive national retail sales tax—thanks to the Prebate.
  • TRANSFER POWER FROM D.C. TO THE PEOPLE—WE DETERMINE HOW MUCH FEDERAL TAX WE PAY AND NOT THE BUREAUCRATS IN D.C.
There are many more reasons for moving from the income/payroll tax system to a consumption tax like the FAIRtax.  You can go to FAIRtax.org and see the economic studies or just start looking at past Chairman’s Reports at the advantages outlined there.

However, perhaps the main reason is that the FAIRtax shows the true cost of government on every receipt.  It is time that our “rulers” in D.C. are honest with what their mismanagement is actually costing us.

We are adults—we deserve to know just how bad the cancer is so we can face it and fix it before it is too late.

If your Member of Congress refuses to support the FAIRtax because of some perceived flaw or shortcoming, remind them that legislation CAN be amended.  Don’t let them get away with condemning the entire bill because it has a “flaw” that can be easily addressed.  And don’t think for a minute that there aren’t any flaws in the income tax.

As Martin Luther King, Jr. said, ”In the End, we will remember not the words of our enemies, but the silence of our friends.”

Please stand with us and demand that your representative support a much fairer, much simpler and much more efficient way to fund the government—the FAIRtax!

The FAIRtax doesn’t pick winners and losers.  Because it taxes spending, not earnings, the FAIRtax lets everyone save for their retirement tax free.  

The FAIRtax collects the revenue that the federal government needs to operate but does it in a way that has the least impact on our individual freedom and the least impact on our economic prosperity.  

There are no tax returns to file and no records to keep.  We pay our federal taxes when we make retail purchases of new goods and services and there is no need for the IRS.  If you sell a used couch or used jet ski online, there is no FAIRtax due on that transaction.

The FAIRtax will allow us to TAKE BACK CONTROL.

The income/payroll tax system is broken and no longer working—we can’t repair it but we can replace it with the FAIRTAX!
 
Join us and TAKE BACK CONTROL OF OUR COUNTRY AND OUR LIVES—NOT WITH BULLETS BUT WITH THE ELIMINATION OF ONE OF THE BIGGEST THREATS TO OUR LIBERTY AND ECONOMIC PROSPERITY—THE INCOME/PAYROLL TAX.

Is it hopeless?  When confronted with a seemingly impossible problem, remember the statement attributed to the author George Bernard Shaw who 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?”  
 
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