A look at the actual provisions of the FairTax Act. Be careful of what you ask for.

[johnwk]

If the FairTax ACT were passed into law the following explains some of its specific provisions.



It would create two new tax collecting agencies, an “Excise Tax Bureau” and the “Sales Tax Bureau", in addition to keeping the Bureau of Alcohol, Tobacco and Firearms alive, which will also be collecting taxes.

See: SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES.

(a) In General.—Section 7801 of the Internal Revenue Code of 1986 (relating to the authority of the Department of the Treasury) is amended by adding at the end the following:
“(d) Excise Tax Bureau.—There shall be in the Department of the Treasury an Excise Tax Bureau to administer those excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“(e) Sales Tax Bureau.—There shall be in the Department of the Treasury a Sales Tax Bureau to administer the national sales tax in those States where it is required pursuant to section 404, and to discharge other Federal duties and powers relating to the national sales tax (including those required by sections 402, 403, and 405). The Office of Revenue Allocation shall be within the Sales Tax Bureau.”.


It imposes a new 23% “FairTax” on “the use or consumption in the United States of taxable property or services” while Congress’ power to continue to lay and collect taxes on “incomes” remains fully intact;

See: “SEC. 101. IMPOSITION OF SALES TAX.

“(a) In General.—There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.”


The FairTax Act does not withdraw Congress’ power to lay and collect taxes calculated from profits, gains, wages, tips and other lawfully realized incomes. It merely promises to do so within seven years.

See SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.

“If the Sixteenth Amendment to the Constitution of the United States is not repealed before the end of the 7-year period beginning on the date of the enactment of this Act, then all provisions of, and amendments made by, this Act shall not apply to any use or consumption in any year beginning after December 31 of the calendar year in which or with which such period ends, except that the Sales Tax Bureau of the Department of the Treasury shall not be terminated until 6 months after such December 31.”


The FairTax Act also increases the number of times tax returns are filed from one, to twelve Fair Tax returns a year;

See: “SEC. 501. MONTHLY REPORTS AND PAYMENTS.”

“(a) Tax Reports And Filing Dates.—
“(1) IN GENERAL.—On or before the 15th day of each month, each person who is—
“(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
“(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.


The FairTax Act also requires ordinary working people to register with government in order to exercise a fundamental right of mankind . . . selling the property each has in their own labor.

See “SEC. 502. REGISTRATION.”

“(a) In General.—Any person liable to collect and remit taxes pursuant to section 103(a) who is engaged in a trade or business shall register as a seller with the sales tax administering authority administering the taxes imposed by this subtitle.


The FT also requires ordinary people to become tax collectors for government;


See “SEC. 103. RULES RELATING TO COLLECTION AND REMITTANCE OF TAX.”

“(a) Liability For Collection And Remittance Of The Tax.—Except as provided otherwise by this section, any tax imposed by this subtitle shall be collected and remitted by the seller of taxable property or services (including financial intermediation services).

It also requires taxpayers to keep whatever records Congress may dream up in the future;

See “SEC. 501. MONTHLY REPORTS AND PAYMENTS.”

“(a) Tax Reports And Filing Dates.—
“(1) IN GENERAL.—On or before the 15th day of each month, each person who is—
“(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
“(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.



The alleged FairTax also sneakily allows Congress to lay and collect countless “excise taxes” in addition to the new 23% FairTax, which members of Congress may dream up, and can be calculated from profits, gains and other incomes.

See SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES”

(a) In General.—Section 7801 of the Internal Revenue Code of 1986 (relating to the authority of the Department of the Treasury) is amended by adding at the end the following:

“(d) Excise Tax Bureau.—There shall be in the Department of the Treasury an Excise Tax Bureau to administer those excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives.



And, the FairTax Act creates a new entitlement, the “Family Consumption Allowance” [a monthly government check sent to every “qualified family” in the U.S.] that would become another political partisan wedge-issue, just like Social Security, used during election time to buy votes in addition to making an enormously large segment of those who vote extremely dependent upon government to access their monthly necessities of life.

See “SEC. 301. FAMILY CONSUMPTION ALLOWANCE”.

“Each qualified family shall be eligible to receive a sales tax rebate each month. The sales tax rebate shall be in an amount equal to the product of—

“(1) the rate of tax imposed by section 101, and

“(2) the monthly poverty level.”




Why on earth would any politician, especially a conservative leader, after studying the FairTax Act’s legislation, support this dastardly evil proposal which would enlarge and strengthen the federal government’s iron fisted taxing grip around the American peoples’ necks? If their object is a sincerely effort to reform our federal tax structure and remove the federal government’s iron grip from the American people’s necks, they would support the Fair Share Balanced Budget Amendment which would actually do what the FairTax is alleged to do but doesn’t.

 

[ReinyDays]

In other words:

"To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States."

I can see why a Republican introduced this ...

 

[iamwhatiseem]

uh... you do realize that businesses already have to submit MONTHLY sales tax forms right?
And that all businesses are to pay those sales taxes directly to the state revenue service every month.

 

[johnwk]

In other words:

"To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States."

I can see why a Republican introduced this ...

But why would "conservatives" in Congress support the FairTax Act?

See: House Republicans Want a Vote On the FairTax. Is It Worth Supporting?

"When Rep. Kevin McCarthy (R–Calif.) finally secured the votes necessary to become the next House speaker, it required concessions to dissenters within his party. Members of the House Freedom Caucus demanded, among other things, a vote on the Fair Tax Act, which has been introduced in the current session."

Seems to me the Freedom Caucus and its members who promote the FairTax (H.R.25), certainly have some explaining to do and tell us why they promote legislation which would, if adopted, enlarge and tighten the iron fist of our federal government around the necks of the American people.

JWK

When Federal Reserve Notes were made a legal tender in violation of our Constitution, and a direct un-apportioned tax was imposed upon the people without their consent, America’s free enterprise, free market system was subjugated, and the tools of oppression were made available to some very immoral and nefariously evil people.

 

[22lcidw]

But why would "conservatives" in Congress support the FairTax Act?

See: House Republicans Want a Vote On the FairTax. Is It Worth Supporting?

"When Rep. Kevin McCarthy (R–Calif.) finally secured the votes necessary to become the next House speaker, it required concessions to dissenters within his party. Members of the House Freedom Caucus demanded, among other things, a vote on the Fair Tax Act, which has been introduced in the current session."

Seems to me the Freedom Caucus and its members who promote the FairTax (H.R.25), certainly have some explaining to do and tell us why they promote legislation which would, if adopted, enlarge and tighten the iron fist of our federal government around the necks of the American people.

JWK

When Federal Reserve Notes were made a legal tender in violation of our Constitution, and a direct un-apportioned tax was imposed upon the people without their consent, America’s free enterprise, free market system was subjugated, and the tools of oppression were made available to some very immoral and nefariously evil people.

The federal income tax under how it was written was supposed to have all taxpayers pay quarterly. They would send their taxes to the government. When the government took taxes before people were paid weekly than i weekly, corrupted judges did not stop it in their decisions.

 

[johnwk]

The federal income tax under how it was written was supposed to have all taxpayers pay quarterly. They would send their taxes to the government. When the government took taxes before people were paid weekly than i weekly, corrupted judges did not stop it in their decisions.

I appreciate you posting that but I'm not sure how it relates to the proposed "FairTax Act"

.

 

[johnwk]

uh... you do realize that businesses already have to submit MONTHLY sales tax forms right?
And that all businesses are to pay those sales taxes directly to the state revenue service every month.

I have operated a business since the 1960's and have only had to file federal tax returns one time a year. Under the proposed FairTax Act I would have to file FairTax returns twelve frickin times a year:

See: “SEC. 501. MONTHLY REPORTS AND PAYMENTS.”

“(a) Tax Reports And Filing Dates.—
“(1) IN GENERAL.—On or before the 15th day of each month, each person who is—
“(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
“(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.

 

[iamwhatiseem]

I have operated a business since the 1960's and have only had to file federal tax returns one time a year. Under the proposed FairTax Act I would have to file FairTax returns twelve frickin times a year:

See: “SEC. 501. MONTHLY REPORTS AND PAYMENTS.”

“(a) Tax Reports And Filing Dates.—
“(1) IN GENERAL.—On or before the 15th day of each month, each person who is—
“(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
“(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.

Looks like they are talking about sales tax.

 

[Jessica-stormlover]

It is immoral and evil. It taxes people that can hardly afford rent and gives a huge break for the elites that can afford 2+ planes and buildings.

 

[johnwk]

Democrat leadership lies about Republican support for the FairTax Act


.
See: FactCheck.org Calls Out Biden and Dems for Lying About “FAIR Tax” Viability

1/30/23


FactCheck.org has called out President Biden, Chuck Schumer and the rest of the Democrats lying about the viability of the “Fair Tax,” a 30% national sales tax (not even including state and local sales taxes) that would create a new entitlement program and lead to a European-style Value Added Tax:

The bottom line is, as confirmed by the above article, the FairTax Act is a very, very bad idea and would enlarge our federal Governments taxing capabilities and it certainly does not have “Widespread GOP Support”.

In fact, there is only a handful of Republicans who support the alleged FairTax.


The only reasonable explanation I can think of as to why Rep. Buddy Carter has latched onto the so-called FairTax is, that he has not studied the text of the Bill himself and is relying on one or more of his lazy staff members representations of H.R. 25 which they may have gotten from the propaganda and misrepresentations found at the fairtax web site, or in the fair tax book authored by Neal Boortz and Congressman John Linder, both of whom have done a disservice to working on real tax reform.


JWK

 

[johnwk]

It is immoral and evil. It taxes people that can hardly afford rent and gives a huge break for the elites that can afford 2+ planes and buildings.

The FairTax Act: “Putting Lipstick on a Pig, Badly”​

.
See: “Fair” tax: Terrible idea that just won’t die

Jan 28, 2023

"It was a bad idea when Neal Boortz and John Linder published The Fairtax Book (which should have been subtitled “Putting Lipstick on a Pig, Badly”) in 2005."

 

[johnwk]

I am still waiting for a Republican House member who supports the FairTax Act to explain why they embrace creating a new Federal entitlement . . . the Family Consumption Allowance which, like Social Security, is very bad and dangerous idea, especially since it would make another huge voting block dependent on government to receive a monthly and rationed supply of tax-free necessities of life.

As Hamilton pointed out: A POWER OVER A MAN’s SUBSISTENCE AMOUNTS TO A POWER OVER HIS WILL ____ Hamilton, No. 79 Federalist Papers

Why is it that not one of the FairTax Act’s co-sponsors is willing to explain why they are so eager to create a new “third-rail” entitlement which we have already learned is destructive to our nation’s general welfare ?

Why would any freedom loving Republican in Congress support this patently evil tax reform which would tighten the iron fist of government around the American people’s necks?

JWK

 

[badbob85037]

If the FairTax ACT were passed into law the following explains some of its specific provisions.



It would create two new tax collecting agencies, an “Excise Tax Bureau” and the “Sales Tax Bureau", in addition to keeping the Bureau of Alcohol, Tobacco and Firearms alive, which will also be collecting taxes.

See: SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES.

(a) In General.—Section 7801 of the Internal Revenue Code of 1986 (relating to the authority of the Department of the Treasury) is amended by adding at the end the following:
“(d) Excise Tax Bureau.—There shall be in the Department of the Treasury an Excise Tax Bureau to administer those excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“(e) Sales Tax Bureau.—There shall be in the Department of the Treasury a Sales Tax Bureau to administer the national sales tax in those States where it is required pursuant to section 404, and to discharge other Federal duties and powers relating to the national sales tax (including those required by sections 402, 403, and 405). The Office of Revenue Allocation shall be within the Sales Tax Bureau.”.


It imposes a new 23% “FairTax” on “the use or consumption in the United States of taxable property or services” while Congress’ power to continue to lay and collect taxes on “incomes” remains fully intact;

See: “SEC. 101. IMPOSITION OF SALES TAX.

“(a) In General.—There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.”


The FairTax Act does not withdraw Congress’ power to lay and collect taxes calculated from profits, gains, wages, tips and other lawfully realized incomes. It merely promises to do so within seven years.

See SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.

“If the Sixteenth Amendment to the Constitution of the United States is not repealed before the end of the 7-year period beginning on the date of the enactment of this Act, then all provisions of, and amendments made by, this Act shall not apply to any use or consumption in any year beginning after December 31 of the calendar year in which or with which such period ends, except that the Sales Tax Bureau of the Department of the Treasury shall not be terminated until 6 months after such December 31.”


The FairTax Act also increases the number of times tax returns are filed from one, to twelve Fair Tax returns a year;

See: “SEC. 501. MONTHLY REPORTS AND PAYMENTS.”

“(a) Tax Reports And Filing Dates.—
“(1) IN GENERAL.—On or before the 15th day of each month, each person who is—
“(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
“(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.


The FairTax Act also requires ordinary working people to register with government in order to exercise a fundamental right of mankind . . . selling the property each has in their own labor.

See “SEC. 502. REGISTRATION.”

“(a) In General.—Any person liable to collect and remit taxes pursuant to section 103(a) who is engaged in a trade or business shall register as a seller with the sales tax administering authority administering the taxes imposed by this subtitle.


The FT also requires ordinary people to become tax collectors for government;


See “SEC. 103. RULES RELATING TO COLLECTION AND REMITTANCE OF TAX.”

“(a) Liability For Collection And Remittance Of The Tax.—Except as provided otherwise by this section, any tax imposed by this subtitle shall be collected and remitted by the seller of taxable property or services (including financial intermediation services).

It also requires taxpayers to keep whatever records Congress may dream up in the future;

See “SEC. 501. MONTHLY REPORTS AND PAYMENTS.”

“(a) Tax Reports And Filing Dates.—
“(1) IN GENERAL.—On or before the 15th day of each month, each person who is—
“(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
“(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.



The alleged FairTax also sneakily allows Congress to lay and collect countless “excise taxes” in addition to the new 23% FairTax, which members of Congress may dream up, and can be calculated from profits, gains and other incomes.

See SEC. 302. ADMINISTRATION OF OTHER FEDERAL TAXES”

(a) In General.—Section 7801 of the Internal Revenue Code of 1986 (relating to the authority of the Department of the Treasury) is amended by adding at the end the following:

“(d) Excise Tax Bureau.—There shall be in the Department of the Treasury an Excise Tax Bureau to administer those excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives.



And, the FairTax Act creates a new entitlement, the “Family Consumption Allowance” [a monthly government check sent to every “qualified family” in the U.S.] that would become another political partisan wedge-issue, just like Social Security, used during election time to buy votes in addition to making an enormously large segment of those who vote extremely dependent upon government to access their monthly necessities of life.

See “SEC. 301. FAMILY CONSUMPTION ALLOWANCE”.

“Each qualified family shall be eligible to receive a sales tax rebate each month. The sales tax rebate shall be in an amount equal to the product of—

“(1) the rate of tax imposed by section 101, and

“(2) the monthly poverty level.”




Why on earth would any politician, especially a conservative leader, after studying the FairTax Act’s legislation, support this dastardly evil proposal which would enlarge and strengthen the federal government’s iron fisted taxing grip around the American peoples’ necks? If their object is a sincerely effort to reform our federal tax structure and remove the federal government’s iron grip from the American people’s necks, they would support the Fair Share Balanced Budget Amendment which would actually do what the FairTax is alleged to do but doesn’t.

The Fair Tax Act is like all the other acts consisting of everything it ain't. I bet you boys and girls can think of a lot more laws made of exactly what they are not. The Patriot Act, The Drug Free Act, The Crime Bill.......

 

[johnwk]

The Fair Tax Act is like all the other acts consisting of everything it ain't. I bet you boys and girls can think of a lot more laws made of exactly what they are not. The Patriot Act, The Drug Free Act, The Crime Bill.......

You nailed it!

One of the few tax reform proposals which actually is in harmony with its title is the Fair Share Balanced Budget Amendment, and it would require any direct tax to be apportioned among the States as our Constitution commands.

 

[Blaster]

It is immoral and evil. It taxes people that can hardly afford rent and gives a huge break for the elites that can afford 2+ planes and buildings.

The current tax code benefits the wealthy and puts the biggest burden on the middle class.

 

[johnwk]

The current tax code benefits the wealthy and puts the biggest burden on the middle class.

So, what tax reform proposal do you support which would advance the general welfare of the United States and require equal taxation if and when Congress lays and collects a direct tax on the people?

JWK

When Federal Reserve Notes were made a legal tender in violation of our Constitution, and a direct un-apportioned tax was imposed upon the people without their consent, America’s free enterprise, free market system was subjugated, and the tools of oppression were made available to some very immoral and nefariously evil people.

 

[Blaster]

So, what tax reform proposal do you support which would advance the general welfare of the United States and require equal taxation if and when Congress lays and collects a direct tax on the people?

JWK

When Federal Reserve Notes were made a legal tender in violation of our Constitution, and a direct un-apportioned tax was imposed upon the people without their consent, America’s free enterprise, free market system was subjugated, and the tools of oppression were made available to some very immoral and nefariously evil people.

Close all loopholes and implement a flat tax on all those folks making $200,000 and over.

 

[johnwk]

Close all loopholes and implement a flat tax on all those folks making $200,000 and over.

I appreciate your response, but it is too vague for me to give an opinion on, except for it apparently being intentionally designed to enforce unequal "direct" taxation.

Our Constitution commands that . . .

*Representatives and direct Taxes shall be apportioned among the several States . . . *

and . . .

“No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.”

Those two commands require our federal government, if it should decide to lay a tax on ordinary working peoples’ earned wages___ a kind of levy which falls within the meaning of a direct tax, e.g. Capitation, Poll, Head or tax upon property ___ it must first determine each State’s apportioned share of a total sum being raised under the tax, and then each taxpayer across the United States would pay the exact same dollar amount, which turns out to be in harmony with . . . one man, one vote, and, one vote, one dollar . . . a just principle commanding Representation with equal taxation!

Let us not forget that even Justice Roberts stated in the Obamacare case dealing with what is called “The shared responsibility payment”:

“The payment is also plainly not a tax on the ownership of land or personal property. The shared responsibility payment is thus not a direct tax that must be apportioned among the several States.” SOURCE

.
Are we to pretend that the bread which working people earn by the sweat of their labor is not their property, and as such, if federally taxed, must be apportioned?

JWK

“The property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable. The patrimony of the poor man lies in the strength and dexterity of his own hands; and to hinder him from employing this strength and dexterity in what manner he thinks proper, without injury to his neighbor, is a plain violation of this most sacred property.” ___ Butchers’ Union Co. v. Crescent City Co., 111 U.S. 746 (1884)

 

[Blaster]

I appreciate your response, but it is too vague for me to give an opinion on, except for it apparently being intentionally designed to enforce unequal "direct" taxation.

Our Constitution commands that . . .

*Representatives and direct Taxes shall be apportioned among the several States . . . *

and . . .

“No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken.”

Those two commands require our federal government, if it should decide to lay a tax on ordinary working peoples’ earned wages___ a kind of levy which falls within the meaning of a direct tax, e.g. Capitation, Poll, Head or tax upon property ___ it must first determine each State’s apportioned share of a total sum being raised under the tax, and then each taxpayer across the United States would pay the exact same dollar amount, which turns out to be in harmony with . . . one man, one vote, and, one vote, one dollar . . . a just principle commanding Representation with equal taxation!

Let us not forget that even Justice Roberts stated in the Obamacare case dealing with what is called “The shared responsibility payment”:

“The payment is also plainly not a tax on the ownership of land or personal property. The shared responsibility payment is thus not a direct tax that must be apportioned among the several States.” SOURCE

.
Are we to pretend that the bread which working people earn by the sweat of their labor is not their property, and as such, if federally taxed, must be apportioned?

JWK

“The property which every man has in his own labor, as it is the original foundation of all other property, so it is the most sacred and inviolable. The patrimony of the poor man lies in the strength and dexterity of his own hands; and to hinder him from employing this strength and dexterity in what manner he thinks proper, without injury to his neighbor, is a plain violation of this most sacred property.” ___ Butchers’ Union Co. v. Crescent City Co., 111 U.S. 746 (1884)

Don't you think it's time for a change?

 

[johnwk]

Don't you think it's time for a change?

Change from what? How our federal government, is currently raising a federal revenue?

JWK

If, by calling a tax indirect when it is essentially direct, the rule of protection [apportionment] could be frittered away, one of the great landmarks defining the boundary between the nation and the states of which it is composed, would have disappeared, and with it one of the bulwarks of private rights and private property. POLLOCK v. FARMERS' LOAN & TRUST CO., 157 U.S. 429 (1895) JUSTICE FULLER