The quote below is a well written letter to Bill O’Reilly from a good friend of mine and staunch advocate of the FairTax; Mr. Frank Brassell.
We encourage you to copy and paste this letter into an email and send it to Mr. Bill as soon as possible. He may be able to ignore a few of us, but he cannot ignore all of us.
I know this is long, but PLEASE read it. Thank you.
Almost every day, at the end of your talking points, you have a guest or two and you say to them something like “Tell me where I’m going wrong.”
Well, I’m going to tell you. While your rhetoric is generally well researched and thought out, your assessment of the FairTax legislation is flawed. I’m not sure what you read or was told that turned you so vehemently against it, but your lack of detailed understanding of the FairTax does your viewing audience of millions a tremendous disservice.
You see, there are many of us out here in the real world, Left, Right & Center, that have put a lot of time and study in on this issue. What have we found? We find that a reasonable person that takes the time to really understand the bill and has the vision to see the effects of implementation almost always becomes a supporter.
The detailed observer sees these points:
1. The FairTax completely untaxes those with resources at or below the poverty level through the prebate, which is nothing more than a blanket tax refund on poverty level spending. This is one of the most important features of the FairTax for a number of reasons. Because it is a blanket, it makes exempting particular items unnecessary, so the complexity of applying different rules to different product/service classes is unnecessary. The other thing the prebate does is to make the FairTax naturally progressive by a curve rather than the “stairstep” bracket system used now. So as your tax rate moves upward, it does so in small increments rather than a sudden high percentage increase as you move to a higher tax bracket. There is no huge penalty for consuming more in a given year, unless you consume a LOT more. Without the prebate, the FairTax is proportional, with it, it is progressive.
2. Removing all business related taxes will revitalize the economy in short order. I will make the assumption that you are aware that businesses do not actually pay taxes, they inflate prices to collect sufficient funds to cover their tax liability. The FairTax will immediately restore predictability and certainty to what the tax man has in store for this year. In this terrible, worsening economy, businesses are crying out for a system that is reassuring, a system that cannot completely wipe out multi-year financial planning with the stroke of the President’s pen.
3. It is fiscally responsible. Nearly a Trillion dollars and 90 Billion hours are spent each year between citizens and businesses complying with the tax code and funding the IRS to police it. Instead of wasting that money and time unnecessarily, each state will collect and police the FairTax through their current sales tax agency (and will receive a sliver of the pie for their trouble). All but a few states already have this in place, and there are provisions to collect through the mechanism of neighboring states for those that don’t.
4. Retail merchants and service providers will still need to fill out tax forms for their deposits. Everybody else is off the hook for the paperwork. No April filing, no audits (except retail sellers), no reason to buy stuff you don’t want or need in order to save yourself from paying more tax… it’s like a dream. You just go about your business, and the Government gets funded (including Social security and Medicare). Then at the end of the year, you do nothing. It’s done.
5. By switching from taxing income to consumption, the tax base is increased markedly as unorthodox sources such as ill gotten gains, and non-citizen consumption is taxed. BONUS- since non-citizens will not receive the prebate, they will be taxed at the full 23% no matter what their income, because there is no offset of taxes for necessities.
6. There are no more loopholes and no more picking of winners and losers by manipulating the tax code by Congress on either side of the aisle.
7. Investments are more profitable, because they are no longer subject to taxation of their growth (until it is spent at the retail level).
8. Education and educational materials are exempt, because they are considered an investment, and investments are not taxed.
9. Used goods are exempt, because the tax was paid on these items when they were sold at the retail level. BONUS- A lot of stuff we currently throw in the landfill may now be rescued and repaired, as demand for used goods would increase as a frugality play.
10. If enacted as written, it is very difficult to “monkey with”. If the Government wants to raise taxes, they must do it for everyone. If the social engineers want to increase the prebate, everybody’s effective rate goes down. The FairTax discourages class warfare because of it’s FAIR nature. Everyone gets taxed the same percentage on goods and services, everyone gets the same prebate to offset the tax on necessities.
11. PRICES WILL NOT RISE BY 23%. There will probably be a slight increase in prices in some industries, others might even be lower after enactment, depending on the amount of the embedded taxes on a particular good or service. But if this could stop the Government from the perceived need to print money for no good reason, slight inflation would be much preferred to the hyper inflation that printing money could bring.
Bill, there are innumerable other reasons that the FairTax would be good for the U.S. Using the word “panacea” is dangerous, but it’s the closest thing I can come up with. Please do your due diligence on the FairTax. It now has over 60 co-sponsors in the House (HR25) and Senate (S13), the most ever, and more are coming on board. Get together with Eric Bolling and Mike Huckabee, have them read this letter and after you FULLY understand the FairTax, you can “tell me where I’m going wrong”.
Look Bill, the economy is in shambles right now. What we need is certainty, predictability and a reason to try and grow a business rather than just sit on pins and needles wondering when the other shoe is going to drop. The FairTax could very well be the mechanism to bring us out of this mess. What better time than now?
The greatest challenge to passing this masterpiece of genius legislation is politicians and opinion makers guessing about it rather than really getting to know it. Of course, self important politicians will readily see that it represents a huge transfer of power from them back to the people. Most of them fear it, because there is a lot to be gained through manipulating our current tax code in order to buy votes in large blocks.
We must drag them screaming and kicking to pass this, because the old system of taxing income has run it’s course.
We could sure use your help.
Thank you for your time, feel free to contact me if you have questions.
[YOUR CONTACT INFO]