Americans For Fair Taxation Stories

Rasmussen Poll Suggests FairTax Roadmap

Ken Hoagland — Tue, 16 Jun 2009 03:49:35 GMT

A few weeks ago the Rasmussen Poll found that 43 percent of Americans favor replacing the income tax system with an undefined national consumption tax! That’s real progress.

The poll was commissioned by an anonymous client to figure out whether a Value Added Tax (VAT) on top of the income tax system would fly with the public. It doesn't. The idea had been floated out of Washington the week before the poll. Only 18% of those polled favor such a bad idea.

The idea of a VAT to pay for health care reform has been getting attention recently at the White House and in Congress and someone wanted to know how it would be received by the public. Most European countries, after all, use a VAT on top of their income tax systems. A VAT collects further taxes at each stage in the production, manufacturing and distribution process. It is a highly effective government strategy to further "embed" (and hide) taxes and the cost of government in the retail price of goods and services. Unlike the FairTax, the VAT is highly regressive, hides even more taxes from the public and has been put in place by government officials hungry for more dollars instead of by popular demand.

About the only thing that the FairTax and the VAT have in common is that they are both taxes based on consumption.

Interestingly and perhaps not surprisingly, most support for a national consumption tax in the USA (even an undefined one) comes from Republicans and Independents according to Rasmussen. Democrats are highly suspect of such an idea. This has long been a frustration for FairTax.org because, as we all well know, the FairTax helps everyone but probably helps those who are traditionally Democrat more than anyone else.

So why is Democratic support for the FairTax so weak? One word: polarization. These days, few ideas supported by Republicans have much chance for fair consideration by the left (and vice versa). Once most Democrats hear that Joe the Plumber, Neal Boortz and Mike Huckabee support the FairTax or when they take a look at Congressional support, they wrongly assume that such an idea does not even merit investigation. That is why we so often hear or read that the FairTax is, "regressive and unfair to the poor". What is really revealed is someone who has not read page 2 about the FairTax prebate, elimination of highly regressive FICA taxes or the fact that the FairTax is far more progressive than the income tax system. For Pete's sake--it reimburses all federal taxes on those below the poverty line.

We love Neal, Herman Cain, Joe and Huck and will always value their advocacy of the FairTax, of course. Our support base grows because of them. But one side of the political spectrum will never be enough to enact the FairTax or repeal the 16th amendment so we had better find effective ways to reach across the political divide. Otherwise, we stump along on two unevenly sized legs.

The Rasmussen poll, while collecting information from the public about an entirely different and inferior form of consumption tax, has nevertheless given FairTaxers a peek into our national progress--and a roadmap for momentum. As satisfying as it may be to rail together against all those either ignorant or willfully blind people who can’t see the merits of the FairTax, our work is clearly needed to illuminate the idea to those now in the dark. That means newspapers, union members, teachers, community advocates and even local party officials.

It goes to the heart of what really makes America great.

Our passionate differences of opinion on the direction of the country have been happening from the moment we formed our great experiment in free speech, religious freedom and self-determination. I, for one, believe it is the argument, itself, that has made our nation so strong. The American people usually consider freely spoken differing points of view and usually find the right path. Those differences don't disappear because of the FairTax but this is an unusual issue where we can fin d broad agreement despite differences in political philosophy--if we just talk to each other. It requires setting aside the passions that have divided us in the past. For the FairTax advocate, it requires patience, cheerfulness and an understanding that mistrust must be overcome for real progress to occur.

But restoring the proper role between citizen and government, making the cost of the federal government highly visible, saving American jobs and putting our economy on a path of robust growth for the good of every American is something that most Americans can agree about. Once we talk about it, it's not our neighbors who will slow progress on the FairTax; it is those in Washington, D.C. who profit so handsomely from the income tax system. The real battle here is between self-interest and the national interest.

The "political class" is adept at pitting us against each other and never so effectively as in debates about taxes. Let's face it--anger and indignation turn people out and win races. Our challenge, made clear in the Rasmussen poll, is to reach across the partisan divide and find common ground with those outside government. Not only is the FairTax good for all but no one from either party wants to be played for a chump by political power brokers. And, for all our differences of opinion, the plain fact is, we have more in common as Americans than we sometimes remember.

Those on the political left and the right have shed blood in defense of this country since our birth as a nation. Bravery, loyalty, invention, productivity and fair play are American virtues without respect to party affiliation. On the other hand, politicians on both the left and the right spend our money and our children's money to buy our votes like there is no tomorrow. If there is a growing "difference" it is between those who consider themselves "American royalty" and all the rest of us. When this perspective begins to take hold, pundits, politicians and their savvy consultants start sneering at "populist" sentiments as if it were a form of communism. Both parties are equally threatened by the potential of the American people becoming unified.

The political class includes crooks and liars from both parties and always has. And to be fair, politicians from the left and right have been heroes and villains. The true genius of the American Republic can be found, however, not in Washington but in hometowns from Portland, Oregon to Portland, Maine. It is where our best ideas come from, where our companies grow, where people are still basically decent and where the political elite can be held accountable to the people.

If we want to see the FairTax enacted, we will have to reach across the political divide to begin speaking as one united American people. From many--one. This is how--and the only way--to overcome the destructive power of the new political "aristocracy"--both Republicans and Democrats--who put themselves above the best interests of the nation and that, of course, includes Democrats, Libertarians, Independents and Republicans, alike.

FairTax supporters gather in Columbia

Erik Haugsby — Mon, 15 Jun 2009 21:53:18 GMT

Jeff Parnell interviews Lee Lewis from Tebbets about his support for consumption legislation at the FairTax Rally. Lewis has supported "fair tax" legislation since 1994.

COLUMBIA — Melva Anderson, her daughter Alicia and her granddaughter Alexis left California, Mo., at 4 a.m. to arrive early at the Midwest FairTax Rally and get the good seats to hear popular consumption tax author and activist Neal Boortz speak.

Anderson drove about 70 miles, a relatively short distance compared with the distances traveled by many other participants from around the country who came out to support the "fair tax," a proposal to replace the federal income, estate and gift taxes with a national consumption tax.

Kate Burch, who had FairTax logos on her baseball hat and shirt, came from Dayton, Ohio, to attend the rally with her husband. Burch said she is worried about the way income tax is taking money away from families.

"(Income tax) has made it necessary for families to have more than one wage earner,” said Burch, a retired clinical psychologist. “And that leads to our children being raised by strangers. And it’s having a very, very sick influence on our culture.

Dave Schumacher has supported the consumption tax initiative since 2000, and he drove 13 hours from Georgetown, Texas, to make the rally.

Mike McLean of Horse Shoe, N.C., took a 10-day ride on his “FairTax-billboard motorcycle," which he has decorated with FairTax logos, to get to the rally. McLean and his 1997 Harley Davidson will be going on an even longer FairTax ride when McLean and his wife lead a group on a four-month trip through all the continental U.S.

"We’re going to talk to people about what it’s all about for us,” McLean said. “You have to spread the word. That’s what’s going to get this thing passed."

The crowd of people at the fairgrounds swelled throughout the day as couples, families and volunteer groups gathered in the events hall. Some brought their own folding chairs, and others held signs with slogans like “Liberty, not debt."

As early as 9 a.m. hours before the total of about 4,670 participants had arrived Marilyn Rickert of FairTax Nation was able to get the crowd going.

"What do we want?” Rickert asked the crowd.

"Fair tax!"

"When do we want it?"

"Now!"

Another speaker, Jeff Parnell, got the crowd involved by asking where they came from and why they wanted to be involved in the movement. Parnell introduced people from places such as Wichita, Kan.; Atlanta; Fulton; and Tulsa, Okla. Parnell focused on the “fairness” aspect of the tax.

Wouldn’t it be great if every time a drug dealer bought a new set of tires they were contributing to our Social Security?

Parnell also sang one of his own songs, "Let’s Annex Old Mexico (While They’re All Up Here),” in relation to one of the other issues he has with the current form of taxation: the lack of economic contribution he says comes from illegal immigrants while they continue “enjoying the fruits of the land.

Linda and Gene Reutzel of Cape Girardeau discussed the ideas Parnell preached to the crowd.

If it does nothing else, it will allow drug dealers, lawn mowers and babysitters to pay taxes,” Gene said. "If we have a consumer tax, when they buy a new gold necklace or baby food or a new mower, they pay taxes at that time."

Linda, like her husband and Parnell, wants everyone to “do their fair share.

"I do believe the 'fair tax' will bring the country together,” Linda Reutzel said. “I’m sick of the government pitting one group against another. If everyone just did their fair share, there would be nothing to gripe about."

Neal Boortz also had words for the crowd.

"People need to recruit, spread the word,” said Boortz, whose name is closely tied to the movement. “They need to understand it’s not going to happen until they make it happen."

Original Article Link

Rally calls for change in tax system

T.J. Greaney — Mon, 15 Jun 2009 16:34:14 GMT

A daylong rally in support of replacing the federal income tax with a 23 percent retail sales tax drew thousands to the Boone County Fairgrounds yesterday.

In the style of a Southern revival meeting, a series of speakers took the stage to rail against a government they see as recklessly speeding toward socialism and mortgaging the wealth of future generations in the process.

Nearly all interviewed for this story believe it is high time to put the Internal Revenue Service out of business.

“Our tax code right now is a man-caused disaster,” said Neal Boortz, a nationally syndicated radio host who has advocated a “fair tax” over the income tax for more than 25 years. “It is in every respect an act of terror against the working people of this country.”

Another speaker, U.S. Rep. John Linder, R-Ga., is co-sponsor of a bill in Congress to institute the national sales tax and mused about what he would do with the approximately 105,000 employees of the IRS when they’re no longer needed. “I say put them on the Mexican border holding hands,” the congressman said to laughter from the crowd of about 2,000 inside the fairground arena.

Proponents contend the new tax would be revenue neutral, not taking money away from existing federal programs. It also would include a monthly rebate check for all taxpayers known as a “prebate,” which equal the average spending by someone living at the poverty level to ensure no one is taxed on necessities. They also contend the federal sales tax would not significantly increase the cost of goods because corporations already pass along federal taxes to consumers as “embedded costs” in everything from cans of Coca-Cola to new cars.

“If the fair tax was your reality, and somebody came along and tried to sell you on the income tax and withholding and the death tax, you’d laugh them out of town,” Boortz said in an interview. “Either that, or you’d string them up. It’s one of the two.”

Many in the crowd wore clothing emblazoned with the fair tax logo or the American flag and toted newly purchased books on the subject. One woman, Kerri Martin of Jefferson City, held a sign reading, “Who is John Galt?” — referring to a character from Ayn Rand’s novel “Atlas Shrugged.” Martin said the character embodies “the spirit and power of the individual.”

“We’ve got to remember, it’s our money we earn. It’s not someone else’s to spend,” said Martin, who with her husband runs a title company. “And this would give us some control. It’s a very ingenious plan.”

A booth run by Columbia gun-rights advocate Tim Oliver advertised introductory courses on owning and carrying concealed weapons. He was doing a brisk business.

“They’re sort of kindred spirits, if you will,” Oliver said of people who support the fair tax and the Second Amendment. Oliver then told a reporter to look around and asked who in the group of about 40 people near his booth did not have a concealed carry permit. “Almost all of them” do, he said. “And just like all polite people and all polite company, nobody’s ever going to know” they’re carrying weapons.

Glenn Chastonay of Moberly drove to the rally along with his wife and father. Chastonay intalls hood hinges for Dura Automotive Systems and recently had to endure a mandatory one-month furlough because of the economic slowdown. His wife, Joyce, recently lost her job, and both are angry that the government is using their tax dollars to bailout corporations. They’d rather keep all the money they earn.

“What about the billion dollars they gave to AIG, and those guys got bonuses? And I’m struggling to put food on the table and pay all my bills,” Chastonay said. “That’s our money. The tax money doesn’t come from the government; it comes from us.”

His father, Ruel Chastonay, a retired IBM employee from Jefferson City, said the tax system has become an overgrown monster. “I do my taxes every year and it’s an onerous task,” he said of the two days he spends tabulating his dues. “And they change it every year; not to help me, but to put in some loophole or to help some lobbyist.”

Advocates including Boortz said the choice for people is between being taxed on “33 percent of everything you earn or 23 percent of everything you spend.” The federal income tax rate he cited refers to the marginal tax rate on some of the top earners in the country. The median household income in Boone County, however, is about $45,000, meaning those families pay federal income tax of about 15 percent.

A study conducted by the Institute on Taxation and Economic Policy said the middle 20 percent of Missouri’s income distribution, those with an average income of $37,000, would see an average tax increase of $2,036 under the fair tax.

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Fair Tax plan wins big at convention

Dawson Bell — Mon, 15 Jun 2009 14:01:44 GMT

HOLT -- The Tea Party movement in Michigan moved from the streets to the conference room Saturday, with activists meeting to discuss the movement's future.

The 200 or so delegates to the Tea Party convention, held at the Capitol City Baptist Ministries, considered four possible ballot proposals.

But the idea of junking Michigan's income, sales and business taxes and replacing them with a broader, higher sales tax, garnered the most support.

The so-called Fair Tax beat out alternative proposals to require two-thirds majorities in the Legislature to raise taxes; the enactment of spending limits on state and local government, and a plan to hold the benefits of government employees to the average level in the private sector.

Asked if that means the Tea Party movement is becoming a Fair Tax movement, convention organizer Wendy Day said: "No. It tells me that a lot of Fair Taxers came to the convention."

Day said the primary purpose of the convention and the Tea Parties -- a series of well-attended rallies held across the country April 15 -- is to channel citizen outrage over the expansion of government and soaring spending into activism.

"Government has overstepped its bounds," she said. "We've put the American dream in a pawnshop with hope that we can buy it back someday."

Several prominent politicians, including Attorney General Mike Cox and Secretary of State Terri Lynn Land -- both of whom are seeking the Republican gubernatorial nomination -- were in attendance Saturday. But neither were part of the program.

Day said organizers believe the energy from the rallies can be best sustained if the movement is not tied to any particular candidate.

She expressed hope the focus could be retained on fiscal responsibility, limited government and lower taxes.

Tea Party rallies in Michigan and elsewhere are scheduled to resume July 4.

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