Once again, the ringleaders of the alleged fairtax are trying to con the American people. The latest tactic is The FAIRtax 2022 Candidate Pledge
The authors of the “FairTax” suggest under their proposal the IRS will be closed down and federal income taxes will be no more. But what actually would happen is, in place of the IRS, the FairTax creates two new tax collecting agencies, the “Excise Tax Bureau” and a “Sales Tax Bureau”, not to mention H.R. 25 (its current House legislation) keeps the “Bureau of Alcohol, Tobacco and Firearms” open for business.
Additionally, under the FairTax, tax returns are still required to be filed by taxpayers, and twelve times a year, and Congress has power to require any type of record keeping it wants, regardless of how burdensome doing so may be to the taxpayer.
Also keep in mind the FairTax, which imposes a 23 percent tax on “all consumption of goods and services in the United States” will tax the necessities of life. To make taxing the necessities of life with an outrageous 23 percent tax tolerable, the plan creates a new federal entitlement called the “Family Consumption Allowance”. This is a monthly check sent out to every “qualified family”, which would allow them to purchase a rationed supply of tax-free articles each month.
But the Family Consumption Allowance subtility makes a large segment of society absolutely dependent on a new federal entitlement, and thus opens the door for socialists and progressives in Congress to rant and rave about the “poor” every election cycle and promise an increase in the monthly government check every time an election comes around.
While the alleged FairTax ringleaders boast it would close down the IRS and end federal income taxes, the fact is, it does not withdraw Congress’ power to lay and collect excise taxes, such as the Corporate Excise Tax of 1909, which was calculated from profits and upheld by the S.C. in Flint vs Stone Tracy ___ long before the adoption of the Sixteenth Amendment! Likewise, the FairTax does not prevent Congress from laying and collecting various other types of excise taxes on individuals, which can also be calculated from profits, gains, salaries, business sales and other “income”.
The bottom line is, the FairTax is a clever rope-a-dope plan to actually increase the federal government’s iron fisted power of taxation, and the shiny object used to delude the people is the illusion that it ends the miseries connected to the IRS, and likewise ends federal taxes calculated from profits, gains, salaries, and other types of “income” when in fact it does not!
Take for example how this tax affects an ordinary married couple. Let us look at Mary and Joe, who have two children and find it necessary to earn extra money to pay their bills. Mary baby sits for neighbors in the community and cleans homes on weekends to raise extra money while Joe, who works for a plumbing company as a full-time job, also provides the same plumbing service on his own time to people living in his community to raise extra cash.
Under the alleged FairTax, Mary and Joe’s inalienable right to sell the property they have in their labor becomes a taxable event. In fact, they must first register with government to sell the property they have in their labor, and then collect a 23 percent federal tax for Congress when selling their labor, file federal sales tax returns under the penalty of perjury 12 times a year, and they will be compelled to keep any records Congress may dream up. In addition, let us not forget to mention the threat of audits will constantly haunt them if they dare to sell the property they have in their labor, and federal tax audits are still a threat to political opponents, which is exactly how American citizens now live under existing federal taxation.
So, as it turns out, the FairTax is not what it is cranked up to be and actually keeps Congress’ power to lay and collect taxes calculated from profits, gains, and other types of incomes alive, along with federal audits, and, federal taxation can still be used as a political weapon against political opponents … all this in addition to creating a new 23 percent tax on “all consumption of goods and services in the United States” and a brand new federal entitlement making people dependent upon our federal government.
The remarkable thing is, adding the following words to our Constitution would actually accomplish what the ringleaders suggest they are trying to accomplish. The question is, why do the not add the following words to H.R. 25?
The Sixteenth Amendment is hereby repealed, and Congress is henceforth forbidden to lay
any tax or burden calculated from profits, gains, interest, salaries, wages, tips, inheritances or any other lawfully realized money.
NOTE: these words would return us to our Founding Father’s original tax plan as they intended it to operate! They would also end the experiment with allowing Congress to lay and collect taxes calculated from lawfully earned “incomes” which now oppresses Americas’ economic engine and robs the bread which working people have earned when selling the property each has in their own labor!