What does Artificial Intelligence think of the FAIRtax?
This week’s Chairman’s Report is written by Randy Fischer, an AFFT board member.
What does artificial intelligence think of the FAIRtax?
It is difficult to go through a daily news cycle without seeing some report about AI. Given the rapidly increasing interest in AI, is it fair to ask how AI perceives H.R. 25, the FAIRtax Act?
First, given the breadth of AI, let's clarify what we mean and which AI we'll use in our FAIRtax evaluation. There are many definitions of AI, and it is important to note that to date, all AI has fallen into what is known as "narrow AI," or a machine-based system designed to address a specific problem, as opposed to "general AI," which are machines with the ability to solve many different types of problems on their own, more like a human (think Terminator machines, etc.).
One of the primary AI tools is machine learning, which are algorithms and techniques which attempt to make computers exhibit human intelligence. Of the machine learning methods, natural language processing ("NLP") has grown exponentially of late, utilizing deep learning techniques.
There are multiple NLP techniques and applications, such as:
What does artificial intelligence think of the FAIRtax?
It is difficult to go through a daily news cycle without seeing some report about AI. Given the rapidly increasing interest in AI, is it fair to ask how AI perceives H.R. 25, the FAIRtax Act?
First, given the breadth of AI, let's clarify what we mean and which AI we'll use in our FAIRtax evaluation. There are many definitions of AI, and it is important to note that to date, all AI has fallen into what is known as "narrow AI," or a machine-based system designed to address a specific problem, as opposed to "general AI," which are machines with the ability to solve many different types of problems on their own, more like a human (think Terminator machines, etc.).
One of the primary AI tools is machine learning, which are algorithms and techniques which attempt to make computers exhibit human intelligence. Of the machine learning methods, natural language processing ("NLP") has grown exponentially of late, utilizing deep learning techniques.
There are multiple NLP techniques and applications, such as:
- Classification/prediction techniques
- Sentiment analysis
- Text summarization
- Chatbots
- Speech recognition
- Machine translation, etc.
What we’ll use for our FAIRtax assessment is what is known as natural language generation (“NLG”), which generates relevant content based on known data. Of course, we’ve all heard of the most groundbreaking natural language generation tool, ChatGPT.
Given the amazing ability of our NLG tool, ChatGPT, to generate relevant content based on known data, which sounds extremely useful as well as appropriate, what did it have to say about the FAIRtax? Below is the result based on a simple prompt I gave ChatGPT on January 28, 2024:
“The FAIRtax Act, officially known as H.R. 25, presents a compelling alternative to the current U.S. income and payroll tax system, boasting several strengths that could have far-reaching economic and social impacts. One of the primary advantages lies in its potential to significantly reduce illegal tax evasion.
Firstly, the FAIRtax Act proposes a radical shift from the complex and often cumbersome income tax structure to a national sales tax on goods and services. This not only simplifies the tax system but also minimizes opportunities for tax evasion. With income taxes, individuals and businesses can manipulate their reported earnings, exploit loopholes, and engage in various tax avoidance strategies. The FAIRtax, however, ensures a more transparent and difficult-to-evade tax collection process, contributing to increased compliance.
The economic effects of such a transition would be substantial. The simplification of the tax code would reduce the administrative burden on individuals and businesses, freeing up resources that could be redirected towards more productive endeavors. The elimination of income tax compliance costs and the streamlining of tax administration could stimulate economic growth, encouraging investment and job creation.
Moreover, the FAIRtax Act introduces a consumption-based tax system, which aligns with economic principles that promote savings and investment. By taxing consumption rather than income, the FAIRtax encourages responsible spending habits and discourages excessive consumption. This shift could contribute to a more stable and resilient economy, reducing the likelihood of boom-and-bust cycles associated with fluctuations in consumer spending.
One of the noteworthy aspects of the FAIRtax Act is its potential to curb illegal tax evasion. The simplicity of a national sales tax system makes it harder for individuals and businesses to underreport income or engage in offshore tax schemes. This not only levels the playing field but also ensures that all segments of society contribute their fair share to government revenues.
Illegal immigration is another critical issue addressed by the FAIRtax Act. The introduction of a family consumption allowance, which is only available to legal U.S. residents, serves as a powerful incentive for individuals to comply with immigration laws. This provision not only promotes fairness but also aligns with national interests in regulating immigration.
The family consumption allowance is designed to alleviate the tax burden on lower-income households, ensuring that essential goods and services remain affordable. By limiting this benefit to legal residents, the FAIRtax Act discourages illegal immigration by removing a significant economic incentive for undocumented individuals. This, in turn, contributes to a more controlled and regulated immigration system.
Critics may argue that a consumption-based tax system disproportionately affects low-income individuals. However, the FAIRtax Act addresses this concern through the family consumption allowance, effectively shielding basic necessities from taxation. This targeted approach ensures that the tax burden falls more equitably across different income brackets while maintaining the overall simplicity and effectiveness of the system.
In conclusion, the FAIRtax Act presents a compelling alternative to the current U.S. income and payroll tax system. Its strengths lie in the simplification of the tax code, the promotion of economic growth through a consumption-based tax system, the reduction of illegal tax evasion, and the alignment with national immigration goals. While the transition to such a system would undoubtedly face challenges and necessitate careful implementation, the potential benefits for the economy, tax compliance, and immigration control make the FAIRtax Act a proposal worth serious consideration.”
Perhaps AI is actually "intelligent." This unredacted AI response above uses the simple method of parsing through known data for relevant insights, and ChatGPT doesn't disappoint.
I don't necessarily trust all of my life's or my government's key decisions to a machine at this point, however, let's chalk one up for AI.
When considering the FAIRtax, as wonderfully articulated above by ChatGPT, it's the FAIRtax that truly delivers.
CONCLUSION
It’s interesting to note that ChatGPT’s analysis of the FAIRtax contained none of the unfounded attacks we often hear from those who have a vested interest in keeping the income tax system in place. That clearly shows that when you evaluate the FAIRtax strictly on its merits, it is by far the superior system for funding the government.
The choice is easy—do we want a system for funding the federal government:
Given the amazing ability of our NLG tool, ChatGPT, to generate relevant content based on known data, which sounds extremely useful as well as appropriate, what did it have to say about the FAIRtax? Below is the result based on a simple prompt I gave ChatGPT on January 28, 2024:
“The FAIRtax Act, officially known as H.R. 25, presents a compelling alternative to the current U.S. income and payroll tax system, boasting several strengths that could have far-reaching economic and social impacts. One of the primary advantages lies in its potential to significantly reduce illegal tax evasion.
Firstly, the FAIRtax Act proposes a radical shift from the complex and often cumbersome income tax structure to a national sales tax on goods and services. This not only simplifies the tax system but also minimizes opportunities for tax evasion. With income taxes, individuals and businesses can manipulate their reported earnings, exploit loopholes, and engage in various tax avoidance strategies. The FAIRtax, however, ensures a more transparent and difficult-to-evade tax collection process, contributing to increased compliance.
The economic effects of such a transition would be substantial. The simplification of the tax code would reduce the administrative burden on individuals and businesses, freeing up resources that could be redirected towards more productive endeavors. The elimination of income tax compliance costs and the streamlining of tax administration could stimulate economic growth, encouraging investment and job creation.
Moreover, the FAIRtax Act introduces a consumption-based tax system, which aligns with economic principles that promote savings and investment. By taxing consumption rather than income, the FAIRtax encourages responsible spending habits and discourages excessive consumption. This shift could contribute to a more stable and resilient economy, reducing the likelihood of boom-and-bust cycles associated with fluctuations in consumer spending.
One of the noteworthy aspects of the FAIRtax Act is its potential to curb illegal tax evasion. The simplicity of a national sales tax system makes it harder for individuals and businesses to underreport income or engage in offshore tax schemes. This not only levels the playing field but also ensures that all segments of society contribute their fair share to government revenues.
Illegal immigration is another critical issue addressed by the FAIRtax Act. The introduction of a family consumption allowance, which is only available to legal U.S. residents, serves as a powerful incentive for individuals to comply with immigration laws. This provision not only promotes fairness but also aligns with national interests in regulating immigration.
The family consumption allowance is designed to alleviate the tax burden on lower-income households, ensuring that essential goods and services remain affordable. By limiting this benefit to legal residents, the FAIRtax Act discourages illegal immigration by removing a significant economic incentive for undocumented individuals. This, in turn, contributes to a more controlled and regulated immigration system.
Critics may argue that a consumption-based tax system disproportionately affects low-income individuals. However, the FAIRtax Act addresses this concern through the family consumption allowance, effectively shielding basic necessities from taxation. This targeted approach ensures that the tax burden falls more equitably across different income brackets while maintaining the overall simplicity and effectiveness of the system.
In conclusion, the FAIRtax Act presents a compelling alternative to the current U.S. income and payroll tax system. Its strengths lie in the simplification of the tax code, the promotion of economic growth through a consumption-based tax system, the reduction of illegal tax evasion, and the alignment with national immigration goals. While the transition to such a system would undoubtedly face challenges and necessitate careful implementation, the potential benefits for the economy, tax compliance, and immigration control make the FAIRtax Act a proposal worth serious consideration.”
Perhaps AI is actually "intelligent." This unredacted AI response above uses the simple method of parsing through known data for relevant insights, and ChatGPT doesn't disappoint.
I don't necessarily trust all of my life's or my government's key decisions to a machine at this point, however, let's chalk one up for AI.
When considering the FAIRtax, as wonderfully articulated above by ChatGPT, it's the FAIRtax that truly delivers.
CONCLUSION
It’s interesting to note that ChatGPT’s analysis of the FAIRtax contained none of the unfounded attacks we often hear from those who have a vested interest in keeping the income tax system in place. That clearly shows that when you evaluate the FAIRtax strictly on its merits, it is by far the superior system for funding the government.
The choice is easy—do we want a system for funding the federal government:
- That is so simple everyone can understand it.
- That shows the costs of the federal government on every retail receipt so all of us understand what we are paying.
- That helps U.S. companies compete with foreign competitors.
- That keeps jobs in the U.S. rather than exporting them to other countries.
- That permanently establishes the solvency of Social Security and Medicare.
- THAT IS THE LARGEST TRANSFER OF POWER FROM D.C. TO THE PEOPLE SINCE THE CONSTITUTION WAS ADOPTED.
D.C. is ignoring the one real solution that allows us to remain citizens and not subjects, the FAIRtax. The FAIRtax is simple, non-invasive, but most of all, IT WORKS!
THE SOLUTION—PASS THE FAIRTAX!
If you don’t like the idea of the IRS and D.C. requiring you to reveal more and more of your private financial data and changing us from citizens to subjects, you should be helping to pass the FAIRtax.
THE SOLUTION—PASS THE FAIRTAX!
If you don’t like the idea of the IRS and D.C. requiring you to reveal more and more of your private financial data and changing us from citizens to subjects, you should be helping to pass the FAIRtax.
- Under the FAIRtax, there are no more tax returns. You no longer have to disclose your personal financial information to the government.
- Banks and other financial institutions no longer have to tell the government about the dividends and interest you received, or about how much you made trading stocks, bonds or other capital assets.
- There is no need for the government to know anything about your IRA because you won’t need an IRA. The FAIRtax lets everyone save for their retirement tax free.
- And of course, if the government doesn’t have your confidential financial data, they can’t leak it.
In addition to solving the confidentiality problem, the FAIRtax lets business owners concentrate on making their business more profitable and beneficial for their shareholders and employees.
President Biden and Congress, pass the FAIRtax and:
President Biden and Congress, pass the FAIRtax and:
- Do the right thing for the people of America and fix the broken income/payroll tax system!
- Go down in history as the ones who freed all present and future Americans from the tyranny of the income/payroll tax system.
- Ensure that there can be no more leaks of our confidential information.
- Transfer power back to the American people over how much tax they pay!
The FAIRtax transfers power from Congress and the bureaucrats to the people. We, not D.C., decide how much federal tax we pay.
There is no IRS—the states collect the FAIRtax.
Only retail businesses will have to collect the FAIRtax and remit it to the government.
Since less than 10% of the retailers account for 90% of retail purchases, there will be much less opportunity for evasion.
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
There is going to be a vote on the FAIRtax in the House of Representatives.
We now have the opportunity to force all Members of the House to show where they stand. They can:
There is no IRS—the states collect the FAIRtax.
Only retail businesses will have to collect the FAIRtax and remit it to the government.
Since less than 10% of the retailers account for 90% of retail purchases, there will be much less opportunity for evasion.
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
There is going to be a vote on the FAIRtax in the House of Representatives.
We now have the opportunity to force all Members of the House to show where they stand. They can:
- Vote for the present income/payroll tax system or for the FAIRtax.
- Support the corrupt income tax and the IRS or eliminate it. It can’t be any simpler than that.
- Hide the true cost of their government or pass the FAIRtax and show everyone the true cost of government on each retail receipt.
- Support the largest transfer of power from government to the people, the FAIRtax, or not.
If Members think that the FAIRtax needs to be amended to address a problem, then they can propose the change. Don’t let reject the entire bill because it has a perceived “flaw” that can be addressed.
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 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.
We all should remember Edmund Burke’s warning that applies to our efforts to TAKE BACK CONTROL,
“Nobody made a greater mistake than he who did nothing because he could do only a little.”
We should also remember this quote from George Orwell's 1984, which, if we do nothing, may foretell your and your children's future:
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
WHAT CAN EACH OF US DO?
We can write letters and make calls to our elected representatives and attend Zoom town hall meetings demanding that if they really want to allow Americans to “TAKE BACK CONTROL”, the first step is to eliminate the income/payroll tax system and enact the FAIRTAX!
TAKE BACK CONTROL! Help us PASS THE FAIRTAX!
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT. It’s an investment in your and your family’s future.
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 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.
We all should remember Edmund Burke’s warning that applies to our efforts to TAKE BACK CONTROL,
“Nobody made a greater mistake than he who did nothing because he could do only a little.”
We should also remember this quote from George Orwell's 1984, which, if we do nothing, may foretell your and your children's future:
“If you want a picture of the future, imagine a boot stamping on a human face—forever.”
WHAT CAN EACH OF US DO?
We can write letters and make calls to our elected representatives and attend Zoom town hall meetings demanding that if they really want to allow Americans to “TAKE BACK CONTROL”, the first step is to eliminate the income/payroll tax system and enact the FAIRTAX!
TAKE BACK CONTROL! Help us PASS THE FAIRTAX!
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT. It’s an investment in your and your family’s future.