The "Fair Tax" Is the Way to Go!

March 17, 2014

Some believe more and bigger government is better; others believe too much government is oppressive, stifling individual initiative.  Regardless of the size of government, we would do well to remember that human nature does not change. 

Our founding fathers wisely designed the U.S. Constitution so it could be amended if necessary but not frivolously.  The Bill of Rights was demanded by the people who had just fought a war against an overreaching government and by the states that didn’t trust a strong central government.  They understood that “power corrupts and absolute power corrupts absolutely". 

The Bill of Rights was intended as a written guarantee (enumeration) of pre-existing rights our forefathers saw as God-given: Life, Liberty and the Pursuit of Happiness.  These are the amendments that lay­­ out individual freedoms that shall not be infringed upon.  

In 1913 an amendment was adopted that started to restrict our freedoms, allowing the federal government to levy taxes upon our income.  From this amendment the IRS was birthed; an agency that has exceeded its authority and worked with other government agencies to target individuals based upon their political beliefs.  It has become one of the most feared agencies in our national government – feared as it uses it power for political purposes, binding and intimidating political opponents of the administration.  

Before 1913 the U.S. Government was largely financed through consumption taxes (e.g., alcohol).  Then came prohibition, the source of this revenue evaporated and income taxes became the primary revenue source.  As politicians started to take home more and more “bacon” (pork) the need to increase income taxes grew.  Government was no longer being used to protect us (e.g., national defense) but to gain power to keep politicians in office.  

Through income tax, withholding the amount of taxation was “hidden” from those paying the taxes.  When people know how much they are being taxed, they have a vested interest in how their money is spent!  In addition, not everybody pays income taxes.

We believe the time has come to consider another form of taxation and to rid ourselves of income taxes and the IRS altogether.  It may make sense to consider a consumption tax, or national sales tax, on the ultimate consumer.  Doing this eliminates multiple taxes on the same goods, services, and money (e.g., paying a “death tax” on money already earned and taxed). 

The Flat Tax doesn’t address many of our issues because it is still an income-based tax, doesn’t repeal the 16th amendment, nor does it eliminate the IRS.   Instead we encourage you to take a look at the “Fair Tax” (H.R. 25).  This tax would eliminate the need for the IRS and income-based taxes.  Instead items would be taxed when the ultimate consumer purchases the product or service.  We already have a system in place to collect these taxes: the corner grocery store, sporting goods store, car dealership, etc.  The Fair Tax only affects consumption and has “pre-bates” where the government pays taxpayers money monthly equal to the amount a person at the poverty level would pay in a national sales tax, thus helping those who are less fortunate.  In addition, the Fair Tax would apply to everyone and couldn’t be avoided by those who are “off the grid.”   Worth considering?

John and Mark

[Go to the "Minority Opinion" By Bill]