UPDATE

 

Liberty Launch Countdown to The Celebration of Indpendence Day–Saturday, July 4, 2009–Ice Tea Party Time To Freeze Government Expenditures, Deficits, Debts and Taxes–Expect 30 Million Nationally in 1,000 Cities and Towns and 1 Million in Washington D.C.!

Please Help Spread The Message of Liberty

For every benefit you receive a tax is levied.

 

~Ralph Waldo Emerson

 

The FairTax: It’s Time

 

 

FAIRTAX AD

 

The US economy needs to bounce back from the current recession.

The creation of new jobs requires restoring consumer and business confidence.

State of the States Snapshot: Consumer Confidence

 

State of the States Snapshot: Hiring vs. Letting Go

 

Real Unemployment Figures Double Those Reported By Labor Department

 

The vast majority of jobs are created in the private sector by small businesses.

Consumers must be willing and able to purchase goods and services from businesses.

Before businesses will expand and invest in their businesses, they need the certainty that  consumer demand for their products and services is growing and tax rates will remain fixed.

The number of unemployed Americans is now over 11 million people and the unemployment rate is heading for 10% by July.

A 10% unemployment rate would mean over 16 million Americans being unemployed by July 4, 2009.

The proposed “stimulus bill” is largely more government spending and more government debt, one of the causes of the economic crisis.

The stimulus bill is a continuation of the problem not a solution.

We the people must regain confidence in the future of the US economy.

Businesses can create wealth and jobs now provided the Federal government would get out of the way.

We the people need another plan or course of action, call it the American People’s Plan–6 Month Tax Holiday and The FairTax. Revised and Updated

  

For the third and fourth quarters of 2009 (July 1 through December 31, 2009) give all individuals and businesses a six month tax holiday from Federal income taxes, payroll taxes (Social Security and Medicare taxes), and capital gains taxes.

For individuals this means their gross pay will not have any deductions for income and payroll taxes.

This means an individual’s gross pay will equal their actual pay.

FairTax for America

The sixth month period will be used to prepare businesses and the Federal Government for the change over from a Federal tax based on income to a Federal tax based on consumption– the FairTax.

UPDATE

The American People Celebrate Independence Day–Saturday, July 4, 2009–By Marching in 1000 Cities and Towns and Attending Ice Tea Parties To Freeze Federal Government Spending, Taxes and Deficits–30 Million Expected Nationally–1 Million In Washington D.C.!

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 1025) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax  administered primarily by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

The FairTax:

• Enables workers to keep their entire paychecks
• Enables retirees to keep their entire pensions
• Refunds in advance the tax on purchases of basic necessities
• Allows American products to compete fairly
• Brings transparency and accountability to tax policy
• Ensures Social Security and Medicare funding
• Closes all loopholes and brings fairness to taxation
• Abolishes the IRS

We offer a library of information throughout this Web site about the features and benefits of the FairTax plan. Please explore!

http://www.fairtax.org/site/PageServer?pagename=about_main

 

 

Frequently Asked Questions about the FairTax

http://www.fairtax.org/site/PageServer?pagename=about_faq

 

The FairTax

 

Gov. Huckabee on the FairTax

 

First, Why We Need a FairTax

 

Second, FairTax Questions and Advantages

 

Lunch&Taxes HOWITWORKS

 

 

Lunch&Taxes HOWMUCH

 

 

Lunch&Taxes COLLECTED

 

 

Lunch&Taxes: LESS

 

 

Lunch&Taxes HER

 

Unfortunately, the American elites of both political parties are opposed to the FairTax.

Once the FairTax is in place, lobbyists and the Federal Government would no longer have the Internal Revenue Code to play with and change to benefit their clients and professional politicians.

On July 4, 2009 march on Washington D.C. to demand the passage of the American People’s Plan–both the six month tax holiday and the FairTax.

This must be a grassroot effort of individuals no matter what your political affiliation.

Do this on your own initiative and bring your family, a friend or neighbor.

Have city car convoys and fly the American flag on your way to Washington D.C. for the biggest fair and Tea Party in American history.

Call your favorite talk radio host and ask them to support and speak at various Tea Parties at the Washington Fair on Saturday, July 4, 2009.

If you cannot make it to Washington call the capital switchboard and ask for your Senator and Representative.

American citizens are the boss.

Call your House Representative, Senator, and President and tell them to vote for the American People Plan–Tax Holiday & Fair Tax!

Senate switchboard: 202-224-3121

http://www.senate.gov/general/contact_information/senators_cfm.cfm

House switchboard: 202-225-3121

White House switchboard: 202-456-1414

Politics Contact Congress

http://www.cbn.com/CBNnews/politics/contact_congress.aspx

Rollcall

“Tips On Telephoning Your Elected RepresentativesTo find your senators’ and representative’s phone numbers, you may use our searchable online congressional directory or call the U.S. Capitol Switchboard at (202)224-3121 and ask for your senators’ and/or representative’s office.

Remember that telephone calls are usually taken by a staff member, not the member of Congress. Ask to speak with the aide who handles the issue about which you wish to comment.

After identifying yourself, tell the aide you would like to leave a brief message, such as: “Please tell Senator/Representative (Name) that I support/oppose (S.___/H.R.___).”

http://www.congress.org/congressorg/issues/basics/

Then return home and march on your state capital to demand the passage of a Constitutional Amendment banning the Federal income taxes forever by repealing the 16th Amendment.

Please pass this message on.

See you in Washington D.C. on July 4, 2009.

Join the Second American Revolution!

This is what one Senator thinks of the American People:

 

Schumer: The American People Don’t Care About Pork Projects In Stimulus

 

Join us in Washington D.C. to tell Senator Schumer what you think about the FairTax.

Also join us on Tax Day–April 15,  2009:

Together We Can Save the Nation

Make a Point on Tax Day 2009

“…April 15th–the single greatest reminder to every American of just how broken our national tax system is.

 This year our work is more important than ever before. Our battered economy can be healed with the FairTax.

Can you help us make that point during this dangerous time for our country?

 Our voices are needed. If we make our democracy work, we can move the FairTax closer to passage.

 It’s all about working together. Below, please find the perfect way for you to support the FairTax–and literally help save the nation.: …” 

 

http://www.fairtax.org/site/PageServer?pagename=2009TaxDay

 

Glenn Beck Shorts 03-31-09 Tax Day Tea Parties April 15th

 

 

TEXAS “Tax Day” TEA PARTY Events – CAPITALIST MARCH ON WASHINGTON

 

 

 

LOL
THE TARP SONG “I Want Some Tarp” by Bill Zucker

Arlo Guthrie/I’m Changing My Name To Fannie Mae

 

Background Articles and Videos

Herman Cain at the Atlanta FairTax Rally

http://www.youtube.com/watch?v=Hya-UpeZANc

Rep. Louie Gohmert Tax Holiday

 

Gohmert Opposes Revised Bail Out

 

Lawrence G. Hrebiniak: The Mismanagement of America, Inc.

 

For Tax Year 2006

Percentiles Ranked by AGI	AGI Threshold on Percentiles	Percentage of Federal Personal Income Tax Paid
Top 1%	$388,806	39.89
Top 5%	$153,542	60.14
Top 10%	$108,904	70.79
Top 25%	$64,702	86.27
Top 50%	$31,987	97.01
Bottom 50%	<$31,987	2.99
Note: AGI is Adjusted Gross Income Source: Internal Revenue Service

 

http://www.ntu.org/main/page.php?PageID=6

The 2003 tax cut was the second in three years, and although tax rates are lower, the federal income tax still remains highly progressive. The average tax rate in 2006 ranges from 3.0 percent of income for the bottom half of tax returns to 22.8 percent for the top 1 percent.Table 1
Summary of Federal Individual Income Tax Data, 2006
(Updated July 2008)

	Number of Returns with Positive AGI	AGI ($ millions)	Income Taxes Paid ($ millions)	Group’s Share of Total AGI	Group’s Share of Income Taxes	Income Split Point	Average Tax Rate
All Taxpayers	135,719,160	$8,122,040	$1,023,739	100%	100%	-	12.60%
Top 1%	1,357,192	$1,791,886	$408,369	22.06%	39.89%	> $388,806	22.79%
Top 2-5%	5,428,766	$1,185,828	$207,311	14.60%	20.25%		17.48%
Top 5%	6,785,958	$2,977,714	$615,680	36.66%	60.14%	> $153,542	20.68%
Top 6-10%	6,785,958	$865,430	$109,060	10.66%	10.65%		12.60%
Top 10%	13,571,916	$3,843,144	$724,740	47.32%	70.79%	> $108,904	18.86%
Top 11-25%	20,357,874	$1,692,686	$158,413	20.84%	15.47%		9.36%
Top 25%	33,929,790	$5,535,830	$883,153	68.16%	86.27%	> $64,702	15.95%
Top 26-50%	33,929,790	$1,569,769	$110,023	19.33%	10.75%		7.01%
Top 50%	67,859,580	$7,105,599	$993,176	87.49%	97.01%	> $31,987	13.98%
Bottom 50%	67,859,580	$1,016,441	$30,563	12.51%	2.99%	< $31,987	3.01%

 

Source: Internal Revenue Service, http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html (“Individual Income Tax Returns with Positive Adjusted Gross Income (AGI) Returns Classified by Tax Percentile – Early Release”)

http://www.taxfoundation.org/news/show/250.htm

FairTax

“The FairTax is a proposed change to the federal tax laws of the United States that would replace all federal income taxes^[1] with a single national retail sales tax. The plan has been introduced into the United States Congress as the Fair Tax Act (H.R. 25/S. 296). The tax would be levied once at the point of purchase on all new goods and services for personal consumption. The proposal also calls for a monthly payment to all family households of lawful U.S. residents as an advance rebate, or ‘prebate’, of tax on purchases up to the poverty level.^[2][3] The sales tax rate, as defined in the legislation, is 23 percent of the total payment including the tax ($23 of every $100 spent in total—calculated similar to income taxes). This would be equivalent to a 30 percent traditional U.S. sales tax ($23 on top of every $77 spent before taxes).^[4]

With the rebate taken into consideration, the FairTax would be progressive on consumption,^[3] but would also be regressive on income at higher income levels (as consumption falls as a percentage of income).^[5][6] Opponents argue this would accordingly decrease the tax burden on high income earners and increase it on the middle class.^[4][7] Supporters contend that the plan would decrease tax burdens by broadening the tax base, effectively taxing wealth, and increasing purchasing power.^[8][9] The plan’s supporters also argue that a consumption tax would have a positive effect on savings and investment, that it would ease tax compliance, and that the tax would result in increased economic growth, incentives for international business to locate in the U.S., and increased U.S. competitiveness in international trade.^[10][11][12] Opponents contend that a consumption tax of this size would be extremely difficult to collect, and would lead to pervasive tax evasion.^[5][4] They also argue that the proposed sales tax rate would raise less revenue than the current tax system, leading to an increased budget deficit.^[4][13]

In recent years, a tax reform movement has formed behind the FairTax proposal.^[14] Increased support was created after talk radio personality Neal Boortz and Georgia Congressman John Linder published The FairTax Book in 2005 and additional visibility was gained in the 2008 presidential campaign. A number of congressional committees have heard testimony on the bill; however, it has not moved from committee since its introduction in 1999 and has yet to have any effect on the tax system. The plan is expected to increase cost transparency for funding the federal government, and supporters believe it would have positive effects on civil liberties, the environment, and advantages with taxing illegal activity and illegal immigrants.^[10][15] There are concerns regarding the proposed repeal of the Sixteenth Amendment, removal of tax deduction incentives, transition effects on after-tax savings, effect to the income tax industry, incentives on credit use, and the loss of tax advantages to state and local bonds. …”

http://en.wikipedia.org/wiki/FairTax

BEYOND THE BASICS

Although a national consumption tax is simple, fair, and transparent, it is recognizably a dramatic shift from our current taxation system.  The economic impact has been researched and debated at length with the resulting studies being presented primarily within two sections:  Beyond the Basics and Research & Bill.  In Beyond the Basics, we present an in-depth view of the FairTax, the background of the current tax code, and the economic arguments that support the FairTax initiative.

Historical View of Taxation
Alexander Hamilton, our nation’s first Secretary of the Treasury shares his thoughts on taxation (excerpt from the Federalist Papers, Federalist No. 21).

Plain English Summary of the FairTax Act (PDF)
This document is a summary of the Fair Tax Act of 2007 (HR 25/S 1025), written in plain language.

Testimony submitted by FairTax.org to the President’s Advisory Panel on Federal Tax Reform (PDF)
Our Chairman, Leo Linbeck, explains to the Tax Panel how the FairTax meets the President’s principles of tax reform: simplicity, fairness and pro-growth.

Taxing Sales Under the FairTax: What Rate Works? (PDF)
The results are in.  Beacon Hill Institute and Dr. Larry Kotlikoff team up to provide a detailed estimate of the FairTax Base and derivation of the proper rate calculation formula.  Bottom line is that the 23% rate works it replaces the revenue generated by the repealed taxes, maintains the real value of federal spending, and imposes no additional fiscal burden on state and local governments.

A Macroeconomic Analysis of the FairTax Proposal (PDF)
This study employs a dynamic supply-side economic model to estimate the impact of the FairTax on major economic indicators:  GDP, disposable income, consumption, investment under the FairTax are all exceed what they would be if the current system were to remain in place.

These documents give a comprehensive look into the overall explanation of and arguments for the FairTax.  For more research pertaining to specific sectors of our economy and more thorough discussions of the economic issues, please visit the Research & Bill section.

http://www.fairtax.org/site/PageServer?pagename=about_beyond

Books on The FairTax

FairTax Groups

http://www.fairtaxgroups.com/

Implications of the FairTax

By Wendy Valencia and Dan Valencia

“…The tax would only be applied once on new goods and services used for personal consumption. Anything purchased used or secondhand would not be subject to the tax. In addition, the tax would not be levied on intermediate business purchases.

The Act also calls for a monthly “prebate” to be issued to every family for purchases up to the poverty level. This means that every month, every household would receive a rebate check for purchases that household will make on necessary goods up to the poverty level.

Under our current system illegal immigrants don’t pay taxes, yet receive benefits, benefits being paid by legal taxpayers. Under the FairTax Act the monthly prebate would not be given to illegal immigrants, but illegal immigrants would still be paying the sales tax, which provides additional revenue to the government that is currently unaccounted for.

The FairTax would provide increased government transparency, but at the loss of tax deductions. However, even with tax deductions becoming meaningless, business owners and corporations still have much more to gain. For instance, businesses would not be required to pay corporate, self-employment, payroll, or capital gains. Businesses would keep more of their money and only be taxed on new goods or services purchased. In most cases, this would mean an increase in your business’s bottom line.

We all know that having more money in your pocket will lead to either increased spending or increased saving/investing. Increased spending would mean more tax revenue for the government at the time of purchase. If you save/invest, then your savings/investment will be able to grow tax-deferred until you spend it at which point you’ll pay taxes on it. The end result is that all income will be taxed, but the question is when. The primary benefit to you as a business owner or as an individual is that you determine WHEN and HOW you pay. …”

http://ezinearticles.com/?Implications-of-the-FairTax&id=1382290

Economy in a Free Fall – Millions More Will Lose Jobs

THE EMPLOYMENT SITUATION:  FEBRUARY 2009

Nonfarm payroll employment continued to fall sharply in February (-651,000), and the unemployment rate rose from 7.6 to 8.1 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Payroll employ-ment has declined by 2.6 million in the past 4 months.  In February, job losses were large and widespread across nearly all major industry sectors.

Unemployment (Household Survey Data)

The number of unemployed persons increased by 851,000 to 12.5 million in February, and the unemployment rate rose to 8.1 percent.  Over the past 12 months, the number of unemployed persons has increased by about 5.0 million, and the unemployment rate has risen by 3.3 percentage points.  (See table A-1.)

The unemployment rate continued to trend upward in February for adult
men (8.1 percent), adult women (6.7 percent), whites (7.3 percent), blacks
(13.4 percent), and Hispanics (10.9 percent).  The jobless rate for teen-
agers was little changed at 21.6 percent.  The unemployment rate for Asians was 6.9 percent in February, not seasonally adjusted.  (See tables A-1, A-2, and A-3.)

Among the unemployed, the number of job losers and persons who completed temporary jobs increased by 716,000 to 7.7 million in February.  This measure has grown by 3.8 million in the last 12 months.  (See table A-8.)

The number of long-term unemployed (those jobless for 27 weeks or more) increased by 270,000 to 2.9 million in February.  Over the past 12 months, the number of long-term unemployed was up by 1.6 million.  (See table A-9.)

http://www.bls.gov/news.release/empsit.nr0.htm

 

Here comes the Internet sales tax grab

By Michelle Malkin