Saturday, April 02, 2011

Posting Comments

I just deleted three comments to this blog. I hated to do so, as they were all very flattering to me, but, since their comments included links to sites that had little, if anything at all to do with the FairTax, I decided they weren't really sincere in what they said about me and this blog.

People, please, I may have been born at night (although I was very young at the time and didn't take notice whether it was day or night), but it certainly wasn't last night. I can usually tell when someone is trying to blow smoke up my skirt. The smoke was so thick I thought I was going to have to call the fire department.

If anyone has a comment to make, in favor of, or opposed to, the Fair Tax, please be honest enough to do so. Please don't tell me how wonderful I am just to get your links posted. If you have links that are related to the Fair Tax, I may publish them.

If you want to advertise your links, this is not the place where it will happen. Unless, of course, you want to negotiate payment in exchange for space. I'll tell you now though, it will be expensive. I have always been a proponent of Free Enterprise.

I always read comments before I allow publication. I don't care if you don't agree with me (where the Fair Tax is concerned, if you don't agree, you either haven't studied it, you don't understand it, or you're just plain stupid), or not, if you comment with respect and make some sense, I'll publish your thoughts.

Wednesday, March 25, 2009

Americans are TEA'd

Americans are TEA'd
by Newt Gingrich 
Posted 03/25/2009 ET
Updated 03/25/2009 ET

Americans are used to April 15th being the day you’re told to pay up.

This year, Tax Day is the day to say you’re TEA’d -- Taxed Enough Already. 

As you read this, liberals in Congress are beginning the process of forcing passage of the $3.6 trillion, high-spending, high-borrowing and high-taxing Obama budget. 

President Obama is even mobilizing teams of his presidential campaign supporters, now a political organization called Organizing for America, who are going door-to-door campaign style to pitch his irresponsibly massive government expansion program that will raise taxes on every single American. 

And what could they possibly be saying about a budget that the nonpartisan Congressional Budget Office predicted last week will lead to deficits $2.3 trillion larger than the Obama White House is telling us?

Once again, we see Washington promoting irresponsible spending and expecting responsible taxpayers to foot the bill.

Here’s what you can do to fight back: On April 15, join your fellow Americans at Tax Day Tea Parties across the nation to say no to the Obama budget. I want to tell you about two groups that are helping to organize the Tea Parties. Why these two groups? I will tell you in a minute and explain how you can participate.

Get Involved in a Tax Day Tea Party on April 15

You won’t read about it in the elite media, but tens of thousands of Americans in hundreds of American communities are organizing Tax Day Tea Parties for this April 15th.

Some communities have already held Tea Parties to fight back against Wall Street and Washington insiders who’d rather taxpayers ask fewer questions and write more checks. 

Over 4,000 turned out in Orlando this past weekend.

More came out in Cincinnati than at anytime since the Vietnam War protests.

But all of this has been a warm-up act for April 15.

The Reagan Coalition is Reassembling itself to Fight the Obama Budget

Some Tea Party participants call themselves “God-fearing patriots,” and it’s a good description for the movement that is gaining strength.

In outrage against the billions of our dollars being used to pay for the irresponsible behavior of others -- and the trillions more in the Obama budget that will be used to expand government even further into our lives -- the Reagan coalition of the faithful and the fiscally conservative is reassembling.

There’s no super-rich sugar daddy like George Soros pulling the strings.

There’s no special interest group like creating the illusion of a grassroots movement.

And it’s not a taxpayer-funded “protest” group like ACORN.

It’s just ordinary Americans who believe in preserving American values and principles like faith, freedom and smaller government.

That’s why I want to tell you about two groups. Each group is focusing on bringing like-minded people together at the same events.

The first group is, a broad coalition of grassroots groups which has already organized many of the Tea Parties that you probably heard about. They have already confirmed more than 250 locations in all 50 states for the April 15 Tea Parties.

The second group is which is a joint effort by Renewing American Leadership and the American Family Association. They are committed to bringing people of faith and their families to the Tea Parties. Over 10,000 are already signed up.

Get Your Tea Party Tool Kit at www.
American Solutions has created a Tea Party Tool Kit that you can download and pass out at your local Tea Party. The Tool Kit is designed to communicate, not just that we’re angry, but that we have a bold agenda with better solutions that will actually get our economy growing again. It’s available here.

The Tea Party Tool Kit’s key component is 12 American Solutions for Jobs and Prosperity, a pro-growth, pro-freedom alternative to the irresponsible policies of the Obama budget.

April 15 is just 20 days away. Go to now to find a Tax Day Tea Party near you and get involved.

Secretary Geithner Has Lost the Confidence of the American People -- If He Ever Had It to Begin With

Another reason to come out to a Tax Day Tea Party is to let President Obama know that Treasury Secretary Timothy Geithner has lost the confidence of the American people and needs to resign.

The Geithner nomination for Treasury Secretary was tainted from the outset. In the midst of a crisis of trust in our financial institutions and our government institutions, the last person we needed for a Treasury Secretary was a public official who had deliberately failed to pay his taxes.

And since then, the news has only gotten worse. As I wrote last week, from the beginning of the crisis last fall, Geithner has been central to the Bush-Obama policy of corporate bailouts that has enriched Wall Street firms with the taxpayers’ money.

The Joke’s On Us: Goldman Sachs Never Needed a Bailout

The latest revelation is perhaps the worst yet.

Remember how the Paulson-Geithner-Bernanke bailout of AIG was initially sold to the American people? We were told that failing to prop up the firm with taxpayer dollars would let loose a cascading failure of the entire banking system.

It turns out that this was never exactly true.

That’s right. Goldman Sachs Chief Financial Officer David Viniar announced last week that his firm never needed the taxpayers’ help after all. Goldman Sachs, it turns out, wouldn’t have failed if AIG had been allowed to fail.

The reason Viniar made the announcement was to divert the public’s attention from allegations that Goldman profited handsomely from the bailout of AIG.

But in trying to tamp down one scandal, Viniar has revealed another: The ground on which Paulson, Geithner and Bernanke sold the $170 billion AIG bailout was -- at least partially -- a lie.

The Top Four Beneficiaries of the AIG Bailout? Goldman Sachs and Three Foreign Banks

So if we didn’t avert a banking crisis with the AIG bailout, what exactly have the taxpayers gotten for their $170 billion? Well, nothing so far. But here’s the list of the top four beneficiaries of the AIG bailout:

1. Goldman Sachs: $12.9 billion
2. Société Générale (France) $11.9 billion
3. Deutsche Bank (Germany) $11.8 billion
4. Barclays (United Kingdom) $8.5 billion

This is the real scandal of the AIG bailout. 

Add the other TARP funds Goldman Sachs received to the AIG pass-through money and you get an astounding total of $23 billion from the taxpayers.

All for a company that now says it never needed help to begin with.

If that’s not a reason to come to a Tax Day Tea Party on April 15, I don’t know what is.

See you there.

Your friend,


P.S. Today, I will testify in front of the Senate Special Committee on Aging. Alongside former Justice of the Supreme Court Sandra Day O’Connor and former U.S. Senator Bob Kerrey, I will discuss the recommendations in the Alzheimer’s Study Group’s National Strategic Plan to overcome the mounting Alzheimer's crisis. Earlier this month, I appeared on the “Today Show” discussing Alzheimer’s and will be on “Nightline” this evening. In my next newsletter, I’ll provide more details on the recommendations. I want to thank our members of the ASG.

P.P.S. Those of you who follow my “tweets” on Twitter have already heard my call for Treasury Secretary Tim Geithner to resign. I’m having a lot of fun with this new technology. If you’d like to correspond with me and follow my “tweets” on Twitter, just click here. Oh, and you can also follow me on facebook as well. 

Monday, March 23, 2009

Dear Fair Tax supporter,

Knowing of your interest in the Fair Tax, I wanted to share with you a recent speech I gave on the floor of the House of Representatives in support of the Fair Tax. As you may know, I have been an outspoken supporter of fundamental tax reform since I was first elected to Congress. The current tax system is broken and in need of immediate and substantial reform. Accordingly, I have been a long time supporter of the Fair Tax. If you have any questions or comments, please do not hesitate to contact me. In addition, please feel free to share this message with family and friends by using the forward to a friend feature on the left.

With kind regards, I am


Cliff Stearns
United States Representative

On March 17, 2009, I joined with a number of my congressional colleagues in speaking out on the House Floor in support of the Fair Tax. The text of my remarks is below.

House of Representatives
March 17, 2009

Mr. Speaker,

I'm here to support the Fair Tax. The current U.S. Tax Code is too big, too complicated, and benefits too many special interests, and must be replaced with a code that is fair and encourages savings and investment.

This code has been amended tens of thousands of times, my colleagues, and it's grown to over 60,000 pages, possibly more. For this, and many other reasons, I rise in support of the Fair Tax and urge my colleagues to consider this new tax simplification program.

The Fair Tax will eliminate Federal income taxes, corporate income taxes, payroll taxes, capital gains taxes, the alternative minimum tax, and the death tax, and replace it with a flat, simple and efficient consumption tax.

Mr. Speaker, Ronald Reagan hit the nail on the head when he described the government's basic view of the economy as: “If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it.”

Unfortunately, Mr. Speaker, this burdensome view taken by our government has resulted in the current problem we face today, where citizens and business owners across this country devote billions of hours and billions of tax dollars just to navigate the process of paying their Federal income tax.

A simpler Tax Code may have prevented former Senator Daschle or current Secretary of the Treasury Geithner the embarrassment of having to explain their failure to properly pay their taxes due to the complicated IRS tax system.

I know many of my constituents in the Sixth Congressional District are aware of how this simple tax reform will work when implemented. They have written numerous letters to me and voiced their support at many town meetings.

I thought I'd take a moment this afternoon to lay out the basic principles of this legislation for those who are not familiar with the Fair Tax.

The Fair Tax will do away with all Federal taxes such as income tax, the death tax, as I mentioned, all the way down to the estate tax. Basically, many Americans with low incomes will receive a check at the beginning of each month from the Federal Government that will cover the cost of the consumption tax on necessary goods, thus increasing the purchasing power of low-income individuals and completely avoiding any unintended tax increase on their purchasing power.

Furthermore, a study conducted by Harvard economist Dale Jorgenson illustrates that roughly 22 percent of the retail price of an item is the direct result of the cost our current Tax Code places on a product through payroll taxes, business taxes, compliance costs, and other taxes.

Therefore, by paying an additional consumption tax, we will be able to fund our entire government, and the taxpayer can keep 100 percent of his hard-earned paycheck. This would lead to increased savings, increased investment, and Americans, not the Federal Government, would decide how to best utilize their wealth.

In addition, Mr. Speaker, the Fair Tax, through its simplicity, will provide transparency to the Federal budget and Federal spending here in Congress. Each time the government claims a needed tax increase to fund runaway spending, as we do, and government expansion, or special district funding requests, the American citizen would be directly affected by this irresponsibility and would be aware of it immediately through the transparency of the Fair Tax system instead of hidden tax increases and budget gimmicks that our government institutes today.

So now, my colleagues, it is time to get rid of this complicated, inefficient, and unfair tax. Now is the time to institute transparency, efficiency, and, finally, fairness in our Tax Code.

Now, for those of us in Congress and perhaps throughout the Nation who are skeptical, I have a suggestion for them, an approach that I think would be possible. Why not take Washington, D.C. as a demonstration project to see if it would work here in Washington, D.C.; allow all residents of this city to pay no Federal taxes, and institute a fair consumption tax, and this consumption tax would be collected by the city and then sent to the Federal Government. Then we could see how it would work and discern its advantages and disadvantages.

The Fair Tax I think ultimately would prove to be very useful, and I urge my colleagues to stand for real change and support this fair solution.

Saturday, March 21, 2009

51 Co-Sponsors

Welcome to the newest co-sponsors of the Fair Tax!

Rep. Rob Bishop (UT-1)
Rep. John Fleming (LA-4)
Rep. John Kline (MN-2)
Rep. Zach Wamp (TN-3)

Congratulations to each for standing by their duty to their constituents and doing the right thing. 

Hello Again!

I haven't posted here in a LOOOONNNNNG time. There really hasn't been much news regarding the FairTax. The occasional new legislative supporter (thanks!), and of course the occasional talk radio personality talk about the FairTax. 

I didn't want to put up a post everytime someone mentioned something good about the FairTax. That would be sort of posting just because. I wanted to post only when something new happened.

In 2006, Neal Boortz and Representative John Linder of Georgia published The Fair Tax Book (available through a click on the Amazon link on the sidebar). It's a very good and easy read. In fact, the Fair Tax itself is very easy to read and understand. 

More recently, several prominent names have been reported as not having reported income on their income tax filings. Timothy Geithner, the new Treasury secretary, is one of them. As Secretary of the Treasure, Geithner is also head of the IRS. Rather embarrasing for Mr. Geithner to have been revealed as a tax cheat, intentional or not. 

Now tell me: if the man who is head of the IRS can't file his income taxes correctly (for several years as it turned out), how is someone like you or me supposed to file our taxes completely, properly, and on time year after year? We are told "ignorance of the law is no excuse" but legislators, former legislators, the Secretary of the Treasury, and others simply pay the taxes and penalties and go on about their business. You and I would be in tax court forever, or paying off the tax and penalty for years if our assests weren't seized for sale at auction. 

The news that brought me back to dust off this blog is that a Special Order Hour was called by Representative Steven King of Iowa. As I understand it, a Special Order Hour can be called by any House member, but is rarely used. On March 17, 2009, after the regular House session, the following members of the House of Representatives spoke:

Rep. Cliff Stearns (FL-06)
Rep. Nathan Deal (GA-09)
Rep. Jeff Miller (FL-01)
Rep. John Mica (FL-07)
Rep. John Linder (GA-07)
Rep. John Duncan (TN-02)
Rep. Phil Gingrey (GA-11)
Rep. Henry Brown (SC-01)
Rep. Paul Broun (GA-10)

Congratulations to each of them for having the courage to step forward and speak on a subject that most politicians wouldn't dream of: putting money back into the hands of the people who actually earned it - The American wage earner.

The video below is of that Special Orders Hour. Nine men spoke from their hearts, so, be warned, it's long. Grab something to drink and get comfortable.

Monday, February 21, 2005

Americans for Fair Taxation is a 501c(4) non-profit, non-partisan organization, headquartered in Houston, Texas with an office in Washington, D.C. Since it was founded in 1995, Americans for Fair Taxation has grown to become the largest tax reform organization in the United States with over 400,000 supporters and members. Americans for Fair Taxation advocates the elimination of the current income tax code and proposes to replace it with the FairTax, a single-rate, federal consumption tax collected only once, at the final point of purchase for personal consumption.

The 50 Reasons I Support the Fair Tax

    FairTax and Individuals and Families
    (Family-friendly tax reform)

  1. It allows workers to keep 100% of their pay, with nothing withheld for the IRS or for Social Security and Medicare payments.

  2. It is revenue neutral with the present income and payroll tax system, funding the federal budget at current levels.

  3. It shifts the tax to consumption. Records show that consumption is more stable than income, therefore the tax revenue stream is likely to be a more stable and predictable amount.

  4. It is progressive, a “prebate” of the tax amount up to the poverty level is given to everyone. This means that those spending below the poverty level have a net gain because the “prebate” exceeds the amount paid in taxes. (Under the present system the working poor pay the 7.65 percent payroll tax even if they get a full refund of income tax withheld.)

  5. It doesn’t tax pre-owned items – clothes, cars, homes. Only new items are taxed when sold by a business to an individual.

  6. It is expected to remove an average of 22% of the cost of American made goods by removing the built-in payroll tax (the other 7.65% of earnings that employers pay), corporate income tax, and other business taxes that are now passed to consumers as an “embedded" tax of approximately 22% due to the cascading of income and payroll taxes paid by U.S. employers, at every step of production, to the U.S. Treasury. Competition will cause prices to fall by approximately that amount, on average.

  7. It allows families to save more for home ownership, education, and retirement. An average family making $50,000 will have $7,500 more spendable income.

  8. It removes the need for formal accounts of the 401(k), IRA, HSA, etc., varieties. Anyone, rich or poor, will be able to set up any kind of savings or investment account without regard to taxes or the government. No special knowledge of tax law is necessary.

  9. It makes educational tuition a tax-free expenditure of tax-free income.

  10. It eliminates the income tax and the IRS. Members of Congress and the public overwhelmingly agree that the current internal revenue code is cumbersome, intrusive, coercive, and inefficient.

  11. It eliminates 90% of the cost of compliance. American families and American businesses waste an estimated $250 – $600 billion per year (and countless hours of time) doing the paperwork necessary to comply with the current tax code. That is roughly $1,000 – $2,000 annually for every man, woman and child in the U.S. (Businesses typically pass their tax bills and compliance costs on to the consumer, i.e., individuals and families.)

  12. It’s simple, unambiguous, and certain, the opposite of the current tax code, 60,044 pages and counting.

  13. It assures that no American will find, at the end of the year, a need to get a loan to pay taxes as an alternative to penalties, interest, or cheating.

  14. The broader tax base comprises everyone spending money in the U.S., including the ten percent of our economy (an estimated $1 trillion) that today is underground or under the table. Under the FairTax, the illegal drug dealer will pay his tax just like the rest of us when he buys his sunglasses, BMW, and other items, as will those who work for cash and undocumented immigrants, all of whom receive government and societal benefits.

  15. It encourages work by letting workers keep 100% of their earnings and giving a rebate, in addition, making the notion that “the more you work, the more money you have”, a reality, unlike the current system where welfare is lost when you go to work, so the first dollars earned after taxes just offset what a welfare recipient is currently receiving in assistance, so working is perceived as disadvantageous.

  16. It allows more of the lower income families to become home owners by allowing a second job income above their current income (all tax free) to be applied to a mortgage. Money for down payments for homes is also saved totally tax free, causing it to accumulate faster.

  17. It has the result that all lending in America will be at the equivalent of today’s tax exempt interest rates, which are 25%-30% less than today’s taxable home mortgage interest rates. This will create a huge boom in housing purchases and allow existing homeowners to refinance and reduce their cost of homeownership substantially.

  18. It allows families to retain farms and businesses in the hands of those who built them through the elimination of the death tax.

  19. It allows families to give tax-free assistance to one another by eliminating the gift tax.

  20. It gives individuals (and businesses) the right to donate as much as they want to in a given year to charitable causes, without concern for exceeding an allowed limit on giving.

  21. It encourages individuals to self-insure, making the health system more direct-pay (no 3rd party pay), thus bringing costs down.

  22. It puts an end to the anxiety for honest taxpayers that begins soon after January 1 for most of use, culminating in wondering whether we’ve claimed everything we legally could and nothing we shouldn’t, all without raising questions at the IRS. It makes April 15 just another day. (Perhaps it will be a holiday after the FairTax is enacted!)

    FairTax and Social Security and Medicare

  23. It eliminates the regressive payroll tax that hurts the poor. Currently, every one of us is taxed a minimum of 7.65% on our first-dollar of wages up to $90,000 (the cap for FICA, not Medicare), if we earn that much. It provides funding for Social Security and Medicare at a level equal to the current system.

  24. It provides that all 290 million Americans and 51 million visiting tourists fund Social Security and Medicare with their purchases. Today only 110 million workers fund these programs via deductions from their paychecks.

  25. It assures that the wealthiest Americans will be voluntarily helping to fund social security with every last dollar they spend above the poverty level. Today, earnings are subject to FICA taxes only up to $90,000. The wealthiest Americans therefore do not pay into the system above that amount. If their earnings are from investments, no earnings fund the Social Security system.

    FairTax and the Economy

  26. It increases investment in business by eliminating the capital gains tax.

  27. It allows for better planning by businesses, because they no longer have to consider the tax implications of everything they do.

  28. It makes higher employment or better compensation possible in the small business sector, where today it costs approximately three dollars in compliance costs to pay one dollar in payroll and income taxes.

  29. It makes American products more competitive overseas by removing the embedded tax from them, thus lowering the prices of our exports, which compensates for low foreign wages.

  30. By making our exports more competitive overseas, it lowers our balance of trade deficit and increases employment at home.

  31. By removing the embedded tax from American products, it makes them more competitive with imports here, compensating for the low cost of imported products from which taxes have been removed before exportation to the U.S.

  32. It encourages investment in companies located in the U.S., thus providing a home for money already in the U.S. and attracting more. The U.S. will be the most attractive tax-free haven in the world for doing business.

  33. It encourages repatriation to the U.S. of money held by U.S. individuals and companies now in foreign countries, with no tax consequence. American companies will return from offshore and overseas.

  34. It results in a windfall profit, likely to be invested in job-creating businesses, for many of those holding taxable corporate high interest bonds at the time of passage of FairTax, since the bonds will not be taxed under the FairTax. (Currently, a higher interest rate is usually paid to entice investors to buy the corporate bonds rather than go with the lower interest, but tax free, municipal bonds.)

  35. It results in Federal Reserve rates being based on current consumption, which is rather stable, instead of future earnings, which are less predictable, resulting in surer inflation prevention.

  36. It reduces production costs for farmers and other subsidized businesses, leading to a reduction in subsidies, thus reducing the federal budget.

  37. It moves many individuals now providing tax advice (return preparation, advice, accounting, planning, and records maintenance) into an expansive economy where they will be producing goods and services. There they can add to the standard of living of all Americans and likely earn more than they do currently, instead of shuffling paper for the government (and not contributing anything economically to society).

    FairTax and Churches and Non-profit Organizations

  38. All contributions to Churches and other non-profit organizations are made tax-free. These organizations no longer will bear the expense of filing tax returns with the IRS and paying their half of Social Security and Medicare payments for employees. In order to purchase goods and services tax free they will just have to apply to the state sales tax authority for a qualification certificate as a bona fide not-for-profit organization operated exclusively for religious, charitable, scientific or educational purposes.

  39. It restores to churches and non-profit organizations the 1st Amendment right to engage in free speech, without fear of losing their tax-free status.

    FairTax and Rights and Freedoms

  40. It restores the 4th Amendment, protecting against unreasonable searches and seizures, from which the IRS presently is exempt.

  41. It restores the 5th Amendment, which guarantees the right to due process. Under current systems the IRS has their own courts with their own set of rules not included in the 5th Amendment.

  42. It restores individual privacy. You no longer have to report where you work, what you are earning, and what you are doing with it. (Employers will report your earnings to the Social Security Administration for determination of your social security benefits.)

  43. It relieves citizens of the risk of facing the shift in burden of proof that is so common with the current system, i.e., the taxpayer is guilty unless proven innocent, but even the IRS staff sometimes gives conflicting interpretations.

  44. It eliminates the need to have a "marriage" clarification declaring who you live with, as that no longer has any bearing at all on a state or federal sales tax.

  45. It eliminates the need for courts to decide which divorced parent gets to take the tax deduction for children.

    FairTax and Government and Educational Entities

  46. Without FICA to pay, most states, counties, municipalities, and school districts will see a large increase in their available state budget revenues, additionally lowering the overall tax burden (State & Federal) for most Americans.

  47. It eliminates the administrative costs incurred by states in collection of state sales taxes because states will piggyback the state tax collection onto the national tax collection, for which they are compensated by the FairTax ¼% administrative cost give-back. (Retailers receive an equal amount for collecting the FairTax.)

    FairTax and Politics

  48. It cleans up a major flaw in campaign financing, eliminating campaign donations for "tax favors".

  49. It eliminates wrangling in Congress over tax cuts, the tax code, and who is or is not paying a fair share of the tax bill, providing more time for debate on more productive issues.

    FairTax and the Environment

  50. It’s good for the environment. Reportedly, the IRS sends out 8 billion pages of forms and instructions each year. Laid end to end, they would stretch 28 times around the earth. Nearly 300,000 trees are cut down yearly to produce the paper for all the IRS forms and instructions. Also, since it taxes only new items, it would encourage buying tax-free pre-owned cars, clothes, furniture, houses, etc. Reuse is good for the environment, too.

    Kenneth J. Van Dellen (with help from friends) 1/22/05