LIBERTY TREE UNIVERSITY

The Fair Tax

The Fair Tax

And what’s wrong with it!

Here are the main problems I have with the proposed Fair Tax.

Those in favor of passing this legislation claim that it first requires that we repeal the 16^th Amendment. This is a false notion fueled by ignorance of the law. The Supreme Court said in Stanton Vs. Baltic Mining Co., 240 US 112 (1916), that the 16^th Amendment does not change Article I, section 8 of the Constitution, and “confers no new power of taxation.” Therefore repealing the amendment will change nothing and will not, in and of itself, eliminate the IRS. Therefore, even if one could successfully repeal the 16^th Amendment, the proposal is doomed from the onset. Other Supreme Court case law as in Brushaber Vs. Union Pacific Railroad Co., 240 US 1 (1916), is being used as the legal backdrop for the authority to continue the fraud known as the Income Tax, so repealing the 16^th Amendment will not be enough.
The proposed sales tax claims to be “revenue neutral”. This means that it will do nothing to change the amount of money going into the coffers of the federal government. This does absolutely nothing to make the feds more fiscally responsible, which is what they claim to be trying to do with the Fair Tax proposal.
Because this is a sales tax and is “revenue neutral”, it’s too easy for everyone to lose track of how and where they are taxed, thus allowing the government and the public at large to easily forget that there is a tax being levied in the first place, and;
This makes it too easy for the tax to be increased by fiat, any time they feel like it. And don’t tell me that it will have to be voted on, because when you rob Peter to pay Paul, you can always count on the support of Paul. In other words, those constituents who benefit from government giveaways will always vote in favor of increased taxes. Eliminating giveaway programs is first and foremost at the heart of the problem, not eliminating the IRS. And:
Wasteful spending by the fed will not change just because the money comes from a different place. Reform needs to be based in correcting the problems that we know exist now, not in changing the source of revenue.
In addition, there must be serious reform of the corrupt cycle known as lobbying. When a politician can be persuaded to vote in favor of passing a law for a particular corporation to receive money based on the amount of begging and influence peddling they engage in, this is a problem. The Fair Tax will not change this.
Also, the government is in the habit of ignoring the will of the people in the first place, so what will stop them from simply printing more fiat money any time they feel like it? The answer is NOTHING. And:
Last but not least is the fact that taxes, like the economy, trickle down to the bottom. When corporations are taxed, industry wide, they do not actually pay the taxes directly. They either move the operation to a tax free environment, thereby eliminating American jobs, or they simply increase the cost of the end product to cover the increased taxes and the CONSUMER pays a higher price at the end of the line. So poor people end up paying the increased taxes levied against the “evil rich and competition will not keep corporations from raising the price of their products, due to the fact that the regulation or tax that increases those costs for a product are levied against an entire industry all at once, in order to make it “fair”. Some perfect examples are cigarettes, alcohol, beef, milk, etc. You name it, the fed has found a way to tax or regulate it, INDUSTRY WIDE. They don’t just tax or regulate one company, they tax them ALL, and the CONSUMER PAYS THE BILL. The Fair Tax WILL NOT CHANGE THAT. That’s trickle down economics 101. If you need proof, check the latest tax returns filed by Goldman Sachs, AIG, etc. You’ll see that not only were they able to differ an income tax liability of TWO BILLION DOLLARS by shipping jobs over-seas, they actually qualified for a TAX CREDIT of over ONE BILLION DOLLARS MORE, on top of that! We must eliminate the IRS AND STOP THE PAYMENTS. Not change the way they get the wealth.

In conclusion,

It is safe to say that the Fair Tax will do ABSOLUTELY NOTHING to change what’s wrong with our federal government in terms of how they borrow and spend and print new FRN’s (Quantitative Easing), anytime the Fed says it’s the right thing to do. Not to mention the Fair Tax does nothing to address the fact that they routinely ignore requests now for freedom of information and Redress of Grievances in regard to taxes and other issues. The fed will not change their attitude until “We The People” force them to.

Stop the "voluntary compliance" with the misapplication of the current Internal Re-Venue Codes. This would immediately cripple the fed and wake them up. The Fair Tax WILL NOT! Instead, it will bury the issue of an overblown and corrupt government and put it on the back burner of the American conscience. People will continue to fund a corrupt, wasteful, SOCIALIST government. That’s why I don’t like the Fair Tax.

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Permalink Reply by John Gaver on June 11, 2014 at 6:46pm

You hit on yet another reason why some people are moving offshore. Many of the small nations favored by expats are net food exporters. Panama's food production makes the nation entirely self-sufficient. They export about 25% more than they import. Better yet, what they export is agricultural food products and what they import is more like soft drinks and processed foods. Moreover, the Boquete area of Panama is likely to soon be declared a "Blue Zone", because of the natural long life of those who live there. Costa Rica has a Blue Zone as well.

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Permalink Reply by Wayne Bachmann on June 11, 2014 at 9:44pm

I have never heard about Blue Zone. What is it?

John David Van Hove, whose pen name is Johnny Liberty moved his business base to Panama, primarily because of the business/political climate being so much better than this country. He maintains his place of domicile in Oregon, but his business is based in Panama.

Permalink Reply by John Gaver on June 12, 2014 at 11:06am

Wayne, Blue Zones are a concept used to identify demographic and/or geographic areas of the world where people live measurably longer lives. I think that there are now 6 or 7 Blue Zones identified. People who live in Panama believe that the Boquete region of Panama is a Blue Zone and researchers apparently think it's a possibility, because they are now tabulating life expectancy data in the area.

Many people, such as your friend John, have established a business presence offshore, whether or not they maintain their residence there. But this is part of the problem that I've been speaking of. People who have a business presence offshore are more likely to already have a second passport or are in a position to acquire a second passport in a short period of time. They are also far more likely to feel comfortable with a permanent move offshore, should conditions in the USA worsen.

Congress just keeps passing laws to punish success and then they seem to be surprised when more successful people leave. Go figure…

If you want more of a thing, reward that thing.
If you want less of a thing, punish that thing.

Permalink Reply by Morton Thomson Jr. on June 6, 2014 at 11:57pm

Excuse me John,

But I believe you may have missed this: Especially the part where I mention no taxes on incomes, eh? I have already proposed this Amendment.

The 35th Amendment

To the Constitution for the united Republics of America

Section 1.

The Sixteenth Amendment is hereby repealed

Section 2.

Congress shall have the Power To lay and collect, Taxes, Duties, Imposts and Excises, to pay the Debts, provide for the common defense, and promote the general Welfare for the united Republics, but the power to lay and collect taxes shall never be construed to extend to incomes, property, or the acquiring, owning keeping or transferring of money or wealth, but instead be applied only to the spending of money, never to be removed from the category of Excises, Duties or Imposts.

Section 3.

Congress shall have the power to enforce this article by appropriate legislation.