5. A Fair Tax Code

A Fair Tax CodeA complete reformation and simplification of the United States Tax Code to require ALL individuals and corporations to pay a fair share of a progressive, graduated income tax by eliminating loopholes, unfair tax breaks, exemptions and unfair deductions, subsidies and ending all other methods of evading income taxes. 

The current system of taxation unjustly favors the wealthiest Americans and corporations, many of who pay fewer taxes to the United States Treasury than citizens who earn much less and pay a much higher percentage of their incomes in taxes. Any corporation or entity that does business in the United States and generates income from that business in the United States shall be fully taxed on that income regardless of corporate domicile or they will be barred from earning their profits in the United States.

This will allow honest companies and individuals who pay their fair share in income taxes to take over those markets in the United States economy formerly held by income tax cheats.

Businesses and individuals that pay taxes in other countries will no longer be permitted to use that excuse to justify their failure to pay federal income tax in the United States if they obtain benefits from doing business in the United States.

Corporations that create jobs in the United States will be rewarded by the tax code and corporations that remove jobs from the United States will be penalized by the tax code. The substitution of lower capital gains tax rates for graduated income tax rates shall be eliminated. This $4 billion a year “hedge fund loophole” which permits certain individuals engaged in financial transactions to evade graduated income tax rates by treating their income as long-term capital gains which are taxed at a much lower rate (approximately 15%) than income tax.

“Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”  -Benjamin Franklin, 1789.

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Showing 114 reactions


Dan Flemming commented 2012-02-27 23:03:19 -0500 · Flag
Let’s not forget executive Deferred Wages, Deferred Bonuses, Deferred Stock options that don’t get claimed in the tax year they were earned or worked. I am thinking of books by David Kay Johnston, Free Lunch, and Perfectly Legal, where executive earn wages or bonuses that get put into a corporate trust fund for up to 20 years where they are invested and earn interest. The solution is to force them to be taxed in the year earned.
chuck gregory commented 2012-02-27 20:26:11 -0500 · Flag
The system right now is, “I work for my money, I pay taxes; my money works for me, it doesn’t pay taxes…”
Timothy Price commented 2012-02-27 19:52:21 -0500 · Flag
Jim Britt “Union/Mafia control of the government.”
If you did a bit deeper you will find the Illuminati/Rothschild family.
Nathan Duncanson commented 2012-02-27 19:42:21 -0500 · Flag
Tax on income = tax on labor. Labor produces wealth.
Tax on Sales (sales tax, value added tax) = tax on productive economic activity.

Both taxes take a larger portion of a persons wealth from the poor than the rich.

Tax on land = tax on natural resources. Natural resources are the inputs by which labor produces wealth. The wealthy own most of the world’s natural resources and get wealthier by denying everyone else access to these resources unless they first agree to give up significant portions of their labor to get that access.

Natural resources were not created by anyone so either no-one should own them, or everyone should own them equally. Set the tax rate on land and natural resources to the market rate rent for the current owners to lease their land or other resources to the highest bidder and the full portion of monopoly profit will go to the community instead of a few private individuals.

Taxing land and natural resources will also tax the wealth far, far more than the poor – because they won’t be able to pass the cost onto those leasing the resources from them.
Jim Britt commented 2012-02-27 19:02:21 -0500 · Flag
The worse thing in this nation is the Union/Mafia control of the government.
Jim Britt commented 2012-02-27 19:01:12 -0500 · Flag
“Fair tax code” means no more deductions for having 5 or 6 kids you can’t afford! EVERYONE should pay taxes with NO DEDUCTIONS!
Jim Britt commented 2012-02-27 19:00:28 -0500 · Flag
You commie fools should all be deported!

I’m sure you will not allow this post to remain since commie liberals HATE the truth and LOVE censorship!
chuck gregory commented 2012-02-27 18:47:47 -0500 · Flag
You’re a Tea Partier, aren’t you, Dorothy?
@IWantFairTax tweeted link to this page. 2012-02-27 13:59:58 -0500
5. A Fair Tax Code - The 99% Declaration: A Fair Tax Code. A complete reformation and simplification of the Un... http://t.co/rsW3R1U7 +
Dorthy Toto commented 2012-02-26 19:36:46 -0500 · Flag
Don’t blame the free enterprise system for the failures of government Progressives and their cronies in business. Who is responsible for the housing bubble, the self-styled Einsteins who decided that banks HAD to make loans to folks who couldn’t afford them, and who used the police power of the State to force banks to find ways to make the loans, regardless of ability to pay them back.

Who kept the problem from being fixed in early 2002/2003? Progressives in Congress who, so pleased with themselves over their “success”, forced Bush to let Fannie and Freddie continue underwriting and guaranteeing obviously worthless loans.

And who is foreclosing on homes… why the very same friends of the White House who donated millions of dollars to get Obama elected, who got billions of dollars from Obama in bailouts, and who have made billions from Fed policies under this administration. Read Hayek and you’ll understand why this isn’t an accident, but rather the deliberate destruction of the American free enterprise system by those who wish to replace it with a Euro-socialist model under which unelected, unaccountable, bureaucracies control business (call it Euro-Fascism), and protect the politicians who rake in the contributions and bribes. Read Hannan for a vision of how American Progresssives are working to impose a radical system of centralized control and lifelong dependency on government wishes and whims.
chuck gregory commented 2012-02-26 18:45:50 -0500 · Flag
Um, Dorothy, where were you in 2008, when our vaunted American enterprise system almost destroyed the planet and conned the taxpayers into giving them $7.3 billion to rescue themselves, for which lovely deed they awarded themselves only $18 billion of it in bonuses? When our noble American contractors wrote themselves cost-plus-6% contracts, overcharged for everything and made themselves millionaires in the Iraq war? When our oil refineries started hiring non-union workers whose mistakes blew up that refinery in Texas in 2005? Whose “profit at any cost” mentality killed 29 coal miners in West Virginia? Who take out “dead peasant” insurance policies on their employees, charging the expense as a business writeoff and the revenue as company profit? Who engineered 13.5 million home foreclosures through robo-signing and other blatantly illegal and unethical practices?

Somebody is taking you personally for a ride, and you really don’t know it. I’m sorry. You’re right, I can’t go on…..
Dorthy Toto commented 2012-02-26 18:23:27 -0500 · Flag
Chuck, the reason the money is sitting there is, as anyone who listens would know, because businesses have no idea what policies are coming out of Washington. They simply can not decide when, and in what, to put their money, or even if they will have any money left as the more than 1,500 new regulations being rolled out by this Administration go into effect.

And I seriously doubt you can go on, because I doubt you really know what you are talking about. You are parroting the talking points of Progressive demagogues who fear the power that would be returned to everyday Americans under the FairTax. Power that would allow them to break out of the income tax debt cycle that keeps them in poverty. Power that would allow them to cast off the dependency programs of a centralized government that holds them, and their children, in economic bondage.

And I will think for a minute. I will think of the massive improvement in the standard of living provided to all Americans through the efforts of American corporations to provide goods and services at prices that made them affordable by nearly all Americans, and still generated a profit so the company stayed in business. And rather than excoriating them for making our lives better, I will ask just what you have done for the bulk of your fellow citizens? Have you provided a product or service that was worth the purchase price? Have you developed new drugs, labor-saving machines, or even children’s toys? In fact, have you done anything that has justified the oxygen you’ve consumed while trashing the FairTax?

Oh, as to “What’s the Matte with Kansas?” Not a damn thing!!!
chuck gregory commented 2012-02-26 17:26:12 -0500 · Flag
No, Dorothy, it’s just sitting there; it will not be used to expand factories, etc., domestically. Right now there is $300 billion here in corporate coffers which could be used to expand factories, etc., just like that offshore money purportedly would under Fair Tax— but it’s not. Why not? Part of the reason is nobody is buying anything, and I could go on, but the point is, don’t think for a moment that the corporations are going to put America ahead of profit.

You should read “What’s the Matter with Kansas?” to better understand where you’re coming from.
Dorthy Toto commented 2012-02-26 17:17:52 -0500 · Flag
Right now, because of the hundred year old failure we call the income tax system, American corporations are holding more than $1 trillion in overseas accounts to avoid paying the 35% corporate tax rate. In other words, that money isn’t helping us, instead, it is being used to expand foreign businesses and competitors of American workers because of our moronic income tax code. It isn’t just that we are not collecting any taxes on it, it’s the fact that it is being actively used to hurt American workers and businesses because of folks like you.

Under the FairTax, that money would come back into the US, to be used to expand factories, train workers, finance entrepreneurs and help stimulate the American economy. Not only that, but the other $12 trillion being kept in off-shore accounts by foreign corporations would also come flooding into the US, providing even more jobs, stimulus, and expansion. Estimates are the American economy would expand by 10% the first year the FairTax is passed, and an average of 5% to 7% for the decade following.

Further, when a survey of 500 foreign companies was conducted, 400 hundred of them said they would build their next manufacturing facility in this country. The other 100 said they would move their company headquarters to the US and re-incorporate as an American company. That means jobs buddy. Jobs for the millions of Americans who are out of work under our current income tax system.

And Chucky… we’ve had this Marxist income tax system for more than 100 years, and it still hasn’t fixed the problem of the poor. In fact, it has, by some measurements, gotten steadily worse since the 1920s when the income tax went into effect. So smart guy, how much more proof do you need that the income tax is hurting, not helping, the poor. Or are you so wrapped up in the class-warfare mantra that you can’t see anything outside the narrow confines of the Progressive centralized control agenda.
chuck gregory commented 2012-02-26 16:33:14 -0500 · Flag
Dorothy, at present there is $1 trillion in corporate profits parked offshore, where it can avoid being taxed. If it is moved into the country, it would be subject to the 35% nominal corporate tax rate, and there would be $35 billion the government could use to fix our roads, bridges, etc., all of which have received a grade of D+ from the American Society of Civil Engineers.

Under the Fair Tax, it can come back into the country without a penny being paid— how do you feel about that?

Because they pay so much less for the necessities of life— food, clothing, rent, mortgage, medical expenses, car payments— the very wealthy make out like bandits with only a Fair Tax. There’s a trillion offshore dollars just waiting for it to happen.
Dorthy Toto commented 2012-02-26 12:40:36 -0500 · Flag
Chuck,
You need to look more closely. The 34% numbers you are referring to are those “calculated” by the Bush Tax Commission. They decided they didn’t like the way the original FairTax, HR-25, was structured, so they changed it to fit their “vision”. One, I might add, that retains the ability of Congress to engage in corrupt manipulation of the tax code to reward cronies.

The 23% rate is real, and calculated on the same basis as the income tax, which it replaces (inclusive). Apples and Apples!!. If you want to compare the FairTax with other sales taxes, on an exclusive basis, then the rate is 30%, but don’t accuse the FairTax of being dishonest just because they want to provide a fair and illuminating comparison between our current corrupt income tax code and the FairTax.

And, if you’d like to be honest, remember, the FairTax replaces all federal income and payroll taxes, as well as removing the roughly 20% of hidden taxes included in all goods and services by the income tax. You want to talk about being dishonest, look at the stealthy way the federal government sneaks extra taxes into our products and services without telling us!!! That’s dishonesty that the FairTax will eliminate!!!

And who gives a rat’s rear end who came up with the idea. Cut the class warfare crap and start thinking about what is best for hard working Americans who are losing their jobs because of the income tax code, losing their saving, homes, and careers because of the income tax code, and watching as a corrupt and unaccountable federal bureaucracy mortgages away their children’s future using the income tax code.

Anyone who defends this hundred year old piece of dog droppings should be examined for dementia, or thrown in jail for crimes against humanity!!!
chuck gregory commented 2012-02-26 11:05:45 -0500 · Flag
Dorothy, the Fair Tax is the absolutely worst innovation in tax reform, short of anything any of the Republican presidential candidates are proposing.

I was appalled immediately by its dishonest sales pitch, representing its 34% tax rate as being only 29% (the upper limit identified in studies for tolerable by the general public). They did this by using really bad math, saying that 12 cents paid on a dollar purchase was a 12% tax. It isn’t; it’s a 12 cent tax on an 88-cent item, or a 13.6% tax, which is 13% higher. Why would somebody resort to dishonest math to peddle a tax system?

It turns out the Fair Tax comes from a Houston developer who has hired his own economist to push this through. You might want to read Michener’s book, “Texas,” to get an idea of what a superrich Texan is after when he proposes a public policy.

Because the tax is based on consumption, the rich, whose consumption expenditures may be as little as 5% of their income, get richer— no capital gains tax on 30% of the average millionaire’s income— and the poor, who pay up to 90% or more of their income for necessities, shoulder even more of the load.

A better tax system would be the “Max Cap Tax,” where the needed tax revenue is based on a maximum rate paid by the top 1%, and then is adjusted downward as a percentage of household income relative to the max cap.

So, if a billionaire is paying a 30% tax rate, a millionaire (making only a thousandth of that) would pay a .003% tax rate, and somebody making $10,000 would send the IRS a postage stamp. In my state, under that system, a household making $60,000 would pay $356, yet all the budget needs would be met.
Dorthy Toto commented 2012-02-26 10:38:53 -0500 · Flag
ANY income tax is, and will always be, subject to manipulation by government and special interests, if only in defining what constitutes income. A much better approach is a retail sales tax, such as the FairTax which only taxes consumption, provides a rebate of all taxes on purchases of necessities so the poor are “untaxed”, and stimulates the economy to provide jobs and benefits.

Any form of income tax “fix” is just a ploy to keep the economic chains in place, enslave the masses to the financial oligarchy, allow the unscrupulous to escape their fair contribution, and empower the corrupt by allowing them to manipulate the tax code for the benefit of their friends and themselves.

Get rid of the income tax, and break the chains!!!
Nathan Duncanson commented 2012-02-25 13:56:47 -0500 · Flag
Sales taxes, Value Added Taxes, and Income taxes are all taxes on labor and productive activities.

Taxes on ownership of land, ownership and/or control of natural resources, and having special privileges are taxes on non-producing activities.

The wealthiest people in our nation, indeed the world, gain their wealth through non-productive activities. They own or control land, natural resources, and hold special privileges from the government. End generally pay far less for those resources and privileges than what they are worth. Once they have the privilege, they without the societal benefit from everyone else – until their price is met. In other words, this control grants them monopoly power over the resource and monopolies maximize profits by restricting access.

Tax the special privileges and natural resources for their full value, eliminate taxes on productive activities, and our economy will flourish because everyone will benefit because no longer will our labor be taken from us to fund government. Nor will private parties reap unearned income from land, natural resources, or special privileges. Instead that unearned increment will go to the community as a whole, to benefit everyone.
Timothy Price commented 2012-02-25 10:30:20 -0500 · Flag
There is much happening that seems will come to our aid. Please take a few days to read this collection of articles and follow the links too. As far as I can tell it all checks out. There is an enormous amount of great info here.

http://www.divinecosmos.com/start-here/davids-blog/1023-financial-tyranny

If this is true, then the military budget, the Federal Reserve, corporate control, and similar corruption will be things of the past, soon. Hope so.
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