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What is the FairTax plan?
The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The FairTax Act (HR 25, S 296) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.
The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The FairTax:
Enables workers to keep their entire paychecks
Enables retirees to keep their entire pensions
Refunds in advance the tax on purchases of basic necessities
Allows American products to compete fairly
Brings transparency and accountability to tax policy
Ensures Social Security and Medicare funding
Closes all loopholes and brings fairness to taxation
Abolishes the IRS
These are the facts cut and pasted from the FairTax.org site. As you can see the facts blow some of the suppositions, assumptions and misinformation I see posted here out of the water. You can read more about it on the site. There's a great Q&A section on there. You can find research papers from independent economists and universities who all agree it will work and grow this economy like it's never been grown before. You can also read the letter to the President and Congress that 80 independent economists sent in support of the FairTax. You'll find a list of social networking sites where you can post and ask questions.
I am a FairTax Leader and all of us had many of the same questions you might have before we became convinced that FairTax was viable. Having had those questions answered satisfactorily we became believers, supports, volunteers, and leaders. Opponents of the FairTax are those who have something to lose, like politicians, lobbyists and those who gain power through manipulating the IRS tax codes which are now up to 67,500 pages. The FairTax code is less than 200 pages.
FairTax is not partisan (political). We do not lobby for candidates but for a fair tax code. Just think of the underground that is not paying taxes, even folks who work for tips and report only a fraction of them, the rich and powerful using loopholes. All that is gone. They all pay the same as everyone. You pay when and if you consume after the poverty level since we all get a pre-bate check at the beginning of each month to offset that which untaxes the poor.
Next time you get a raise you would get your whole raise along with your whole paycheck along with your monthly prebate check. You can find a prebate calculator on FairTax.org to see how much you would get monthly this year.
There will be FairTax Rallies in Jacksonville, FL and Columbia, SC in April. Hope to see some of you there.
If you read about this and understand it, it is the only thing that can save the American Economy and at the same time give the power back to the people.
I went to the site and it didn't explain the mechanics at all, just a bunch of "benefits", but not the how of it.
Does this Fair Tax act as a sales tax on the sale of stocks or bonds?
If you read about this and understand it, it is the only thing that can save the American Economy and at the same time give the power back to the people.
A) I understand it.
B) I disagree with it.
C) Pursuant to the organic documents that created the U.S.A., only privileges are subject to taxation. Rights are never subject to taxation, because the tax impairs the exercise of that right. The privilege that all retail excise taxes are levied upon is the use of worthless notes (aka "dollar bills"). Lawful money (i.e. gold / silver coin) transactions would not be subject to taxation.
D) The tax plan fails to address the underlying forces that are wrecking the nation: national socialism and usury.
Contrary to popular belief, U.S. citizens are subjects - not sovereigns. They have no "power".
According to the Declaration of Independence, governments are instituted among men to (a) secure rights, and (b) govern by consent of the governed.
If you haven't given consent to be governed, all government is authorized to do is use its awesome power in support of your right to life, liberty, private property and other sundry rights, not explicitly mentioned.
If you haven't given consent to be governed, and not submitted yourself (and your property) to the government, then the government is your servant.
"Government is not Sovereignty. Government is the machinery or expedient for expressing the will of the sovereign power."
City of Bisbee v. Cochise County, 78 P. 2d 982, 986, 52 Ariz. 1
But what is a sovereign and what is sovereignty?
SOVEREIGN - A person, body or state in which independent and supreme authority is vested...
Black's Law Dictionary Dictionary, Sixth Edition, p. 1395.
SOVEREIGNTY - ...By "Sovereignty", in its largest sense is meant supreme, absolute, uncontrollable power, the absolute right to govern.
Black's Law Dictionary Dictionary, Sixth Edition, p. 1396.
Who or what is the sovereign power, if the government is not sovereignty?
"People are supreme, not the state."
Waring v. the Mayor of Savannah, 60 GA at 93.
"The people of the state, as the successors of its former sovereign, are entitled to all the rights which formerly belonged to the king by his own prerogative."
Lansing v. Smith, (1829) 4 Wendell 9, (NY)
"At the Revolution, the sovereignty devolved on the people and they are truly the sovereigns of the country."
Chisholm v. Georgia, 2 Dall. 440, 463
Let's figure out what the government is.
"...In America, however, the case is widely different. Our government is founded upon compact. Sovereignty was, and is, in the people."
Glass vs The Sloop Betsey, 3 Dall 6 (1794)
What compact?
"But, indeed, no private person has a right to complain, by suit in Court, on the ground of a breach of the Constitution. The Constitution, it is true, is a compact, but he is not a party to it. The States are the parties to it....."
- - -Padelford, Fay & Co. vs. Mayor and Alderman, City of Savannah, 14 Ga. 438, 520 (1854) Supreme Court of Georgia
The U.S. Constitution is a compact between the States united and the United States, in Congress assembled.
Wait, aren't "we, the people" part of that compact?
Not if you're a private person, and one of the sovereign people.
Why?
"... the term 'citizen,' in the United States, is analogous to the term "subject" in the common law; the change of phrase has resulted from the change in government. ... he who before was a "subject of the King" is now a citizen of the State."
State v. Manuel, 20 N.C. 144 (1838)
"CITIZEN - ... Citizens are members of a political community who, in their associative capacity, have established or submitted themselves to the dominion of government for the promotion of the general welfare and the protection of their individual as well as collective rights. "
- - - Black's Law Dictionary,Sixth Ed. p.244
"SUBJECT - One that owes allegiance to a sovereign and is governed by his laws.
...Men in free governments are subjects as well as citizens; as citizens they enjoy rights and franchises; as subjects they are bound to obey the laws. The term is little used, in this sense, in countries enjoying a republican form of government."
- - - Black's Law Dictionary, Sixth Edition, p. 1425
Wait a minute - the government said it wasn't the sovereign, and that people were sovereign.
Who is a subject / citizen?
He who has established or submitted himself to the dominion of government is a citizen. He has given consent to be governed, in exchange for political liberties (voting and holding office).
Wait - there's an exception with respect to a "republican form of government"!
Good observation.
The United States shall guarantee to every State in this Union a Republican Form of Government, and shall protect each of them against Invasion;
[United States Constitution, Article 4, Section 4]
REPUBLICAN (form of) GOVERNMENT. One in which the powers of sovereignty are vested in the people and are exercised by the people, ... directly,....
In re Duncan, 139 U.S. 449, 11 S.Ct. 573, 35 L.Ed. 219;
Minor v. Happersett, 88 U.S. (21 Wall.) 162, 22 L.Ed. 627.
- - - Black's Law Dictionary
In a republican form of government, the people are sovereign. The servant government, and its subject citizens, are delegated certain powers to secure the rights of the sovereign people.
Is that clear?
In America, the people are sovereign. But by consent, a private person can change his status, and submit himself to government, as a citizen.
Did you think you were born a "U.S. citizen"?
Who told you that?
It's not in the law.
"A Sovereign cannot be named in any statute as merely a 'person' or 'any person'".
Wills v. Michigan State Police, 105 L.Ed. 45 (1989)
"In common usage, the term 'person' does not include the sovereign, [and] statutes employing the [word] are ordinarily construed to exclude it."
Wilson v. Omaha Indian Tribe, 442 U.S. 653, 667, 61 L.Ed2. 153, 99 S.Ct. 2529 (1979)
(quoting United States v. Cooper Corp. 312 U.S. 600, 604, 85 L.Ed. 1071, 61 S.Ct. 742 (1941)).
"All PERSONS born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside." [14th Amendment, Section 1.]
Uh oh... Sovereign Americans are not persons subject to nor object of the governing power of the servant government.
What proof exists that there are people who are NOT citizens?
"The better to secure and perpetuate mutual friendship and intercourse among the people of the different states in this union, the free inhabitants of each of these states,..., shall be entitled to all privileges and immunities of free citizens in the several
states; ..."
[Article IV of the Articles of Confederation (1777)]
Did you think "everybody" born in the U.S.A. was a U.S. citizen residing at a residence?
What's an inhabitant (as in free inhabitant)?
"INHABITANT - One who resides actually and permanently in a given place, and has his domicile there."
- - - Black's Law Dictionary, Sixth Edition, p.782
"DOMICILE - A person's legal home. That place where a man has his true, fixed, and permanent home and principal establishment, and to which whenever he is absent he has the intention of returning."
- - - Black's Law Dictionary, Sixth Edition, p.484
"RESIDENCE - Place where one actually lives ... Residence implies something more than physical presence and something less than domicile. The terms 'resident' and 'residence' have no precise legal meaning... [One can have many residences but only one domicile]
- - - Black's Law Dictionary, Sixth Edition, p.1308, 1309
U.S. citizens who reside at residences do not have legal, permanent homes. Coincidentally, no state issues "resident" licenses (permissions) to non-resident inhabitants domiciled in their state. In fact, inhabitants don't need permission, because they're not transients and trespassers. They have the RIGHT to be in the state and use the public roads and waterways, marry, own a dog, build a house, enter occupations, and run a business without permission of their servant government. They're the sovereign people!
Check your own state's constitution and laws for mention of the inhabitant and his superior status.
" No inhabitant of this state shall be molested in person or property ... on account of religious opinions..."
- - - Georgia Constitution, Article 1, Sec.1, Paragraph 4
If your religious opinions forbid you to enroll into national socialism, accept numbering, or engage in usury, you cannot be molested for your choice... in Georgia. And if you think they were not aware of the difference between inhabitants and residents, read this:
"Citizens, protection of.
All citizens of the United States, resident in this state, are hereby declared citizens of this state; and it shall be the duty of the General Assembly to enact such laws as will protect them in the full enjoyment of the rights, privileges, and immunities due to such citizenship."
- - - Georgia Constitution, Art 1, Sec.1, Paragraph 7
Recapping, the government is not sovereign, but servant to the sovereign people. However, citizens are subjects of the sovereign government. Since involuntary servitude is unconstitutional (except after conviction), the compulsory civic duties associated with citizenship are empowered by consent of the governed. You DID give consent, knowingly, willingly and intentionally, didn't you? You did sign many government documents where you claimed to be a citizen and a resident, didn't you?
If you were a victim of fraud or constructive fraud, you have the right to object, and change your status at law. But once you leave, don't ever submit again, for then it would be a permanent and irrevocable election, and no objection will hold up.
The REAL POWER is in the sovereign people, who are served by government.
The best features of the fair tax is that it makes it much more obvious just how much the federal government collects in taxes. So much of our tax burden now is hidden, in the form of higher costs for products passed on to consumers. In addition our high corporate tax rate provides an incentive to outsource production and penalizes production in this country. With the fair tax, products made overseas are taxed the same as domestically made ones at the time of sale.
The fair tax also does not penalize savings. As it currently stands, you pay income tax on your earnings, then pay again on any interest or dividends you receive. With FT, tax is only collected when you buy something.
The best features of the fair tax is that it makes it much more obvious just how much the federal government collects in taxes. So much of our tax burden now is hidden, in the form of higher costs for products passed on to consumers. In addition our high corporate tax rate provides an incentive to outsource production and penalizes production in this country. With the fair tax, products made overseas are taxed the same as domestically made ones at the time of sale.
The fair tax also does not penalize savings. As it currently stands, you pay income tax on your earnings, then pay again on any interest or dividends you receive. With FT, tax is only collected when you buy something.
Yeah, but what if you are so stinking rich, all you buy is stocks, bonds or Federal Reserve Notes?
Many components, such as potential tax on rental and mortgage interest are discussed in the thread. It is a much more complex proposal than a comprehensive sales tax.
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