TAXES VAT, FLAT, 9-9-9, and FAIR

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TAXES VAT, FLAT, 9-9-9, and FAIR

• WHATS THE DIFFERENCE?

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CURRENT TAX STRUCTURE
FEDERAL TAXES
Corporate tax rate - 10 15 25
28 33 35 38 Individual tax rate
- 10 15 25 28 33 35
Payroll taxes - 7 ½ (employee paid)
7 ½ (employer paid) Capital Gains tax
10 to 15 Estate (death) tax 50
Alternative Minimum Tax - ????????
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INDIVIDUAL INCOME TAX DISTRIBUTION
The richest 5 .   53
The next   20   30
The next   25 .   13
The bottom 50 .     4
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LOBBYISTS
.. apparently there are those in Washington who
view politics as a means of getting rich, and
who, while generally not dumb enough to accept
bags of small bills, are perfectly prepared to
take care of contributors and properly feather
their beds until the time is finally ripe to jump
into the lucrative practice of lobbying on behalf
of those they once regulated.
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LOBBYISTS
.. apparently there are those in Washington who
view politics as a means of getting rich, and
who, while generally not dumb enough to accept
bags of small bills, are perfectly prepared to
take care of contributors and properly feather
their beds until the time is finally ripe to jump
into the lucrative practice of lobbying on behalf
of those they once regulated. More often,
though, that's not the way that money influences
politics. Few lobbyists proffer an explicit quid
pro quo to elected officials. They don't have
to. Their influence comes simply from having
more access to those officials than the average
voter, having better information than the average
voter, and having more staying power when it
comes to promoting an obscure provision in the
tax code that means billions for their clients
and that nobody else cares about."
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LOBBYISTS
.. apparently there are those in Washington who
view politics as a means of getting rich, and
who, while generally not dumb enough to accept
bags of small bills, are perfectly prepared to
take care of contributors and properly feather
their beds until the time is finally ripe to jump
into the lucrative practice of lobbying on behalf
of those they once regulated. More often,
though, that's not the way that money influences
politics. Few lobbyists proffer an explicit quid
pro quo to elected officials. They don't have
to. Their influence comes simply from having
more access to those officials than the average
voter, having better information than the average
voter, and having more staying power when it
comes to promoting an obscure provision in the
tax code that means billions for their clients
and that nobody else cares about." The
Audacity of Hope Barack Obama
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LOBBYISTS
Estimated 60 to 70 of lobbyists in Washington
D.C. are there to get tax breaks for their
organizations Lobbyists manipulate Congress
members by contributing to re-election campaigns
in order to influence congressional
voting. Congress manipulates the tax code (now
over 67,000 pages) to choose winners and
losers particularly based on lobbyists
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VALUE ADDED TAX
No valid proposal has been presented or even
voiced Tax will be levied on products all along
the production / distribution chain Requires
corporation to keep track of tax payments in
order to get refunds Will require companies (big
and small) to add workers to comply with the
reporting requirements without adding 1 pennys
worth of value to the product Increases the end
cost of goods to the consumer Does nothing to
change Income Tax or Payroll Tax. Congress can
still manipulate the tax code for special
interests.
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VALUE ADDED TAX

• Every part in any product you buy experiences a
  VAT burden.
• And it's not just the VAT itself, it's also the
  cost of complying with the tax code,
• like extra employees to process it.
• You pay the VAT levied on every company that
  makes a part in any product you buy.
• No matter where you look, ALL taxes are paid ONLY
  by the common citizen.
• Your income taxes may be small compared to the
  taxes you pay when you buy stuff.
• And if you buy a lot of stuff... well, you get
  the picture.
• Current VAT proposals ADD VAT on top of current
  business income taxes

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VALUE ADDED TAX
. Final Point VAT administration requires a
new VAT Authority, probably more intense than the
IRS. The point is, when a tax is levied against
a corporation, that corporation just includes
the cost of that tax (and the cost of complying
with the tax laws) in the price of its product or
service. So the customer pays the tax. This
applies at any level, and flows all the way to
the private citizen who ultimately pays all the
taxes. Sometimes it's a long chain, but all the
links are connected, and at the bottom of any
product tax chain, is the private citizen. So,
corporations collect taxes for the government,
they don't pay taxes. It's just another way the
government gets your money! The embedded cost of
VAT expands the more complex the product is.
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FLAT TAX
H.R. 1040 - 10 co-sponsors Calls for a
single income tax rate of 19 decreasing to 17
in 2 years
Provides standard deductions based on marital
status and family size Does not address
Corporate income Wage earners still pay payroll
taxes - 7 ½ of income Companies still pay
payroll taxes another 7 ½ of wages Leaves
Internal Revenue Code intact allows for
manipulation and loopholes What is
INCOME? Leaves 16th Amendment to the
Constitution intact - allows Income
Tax Intended to be a post card-sized income tax
return
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1040 INCOME TAX
RETURN HOW MUCH DID YOU MAKE?
_______________________
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1040 INCOME TAX
RETURN HOW MUCH DID YOU MAKE?
_______________________
SEND IT IN !
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9-9-9 Plan proposed by Herman Cain
No current legislation proposed 9 Corporate
Income Tax - Eliminates the payroll tax
Minimal deductions / loopholes Encourages
companies to Buy American Internal Revenue
Code remains and can continue to be manipulated
by Congress for special interests 9
Personal Income Tax - Eliminates the payroll
tax Minimal deductions other than a
standard deduction based on family size
and marital status What is INCOME? 9
National Retail Sales Tax - minimal
exclusions could be extremely
regressive Hurts those who can least
afford it
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THE FAIRTAX
H.R. 25 - 68 co-sponsors S-13 - 9
co-sponsors 5-point plan
Personal Taxes Corporate Taxes Payroll
Taxes National Sales Tax Prebate
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PERSONAL INCOME TAXES
Deletes ALL personal Income Tax Eliminates
Income Tax filing Eliminates burdensome record
keeping April 15 becomes Just another Spring
day
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CORPORATE INCOME TAXES Removes income
tax on Corporation profits Off-shore companies
will move their corporate headquarters to US for
the tax advantages Estimated 11 Trillion dollars
in off-shore banks will come to the US for the
tax advantages Companies planning on moving
off-shore will stay in the US due to the tax
advantages Companies will save on burdensome
record keeping Prices will necessarily drop due
to competition
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PAYROLL TAXES
Social Security withholding is eliminated -
employers will still report wages but will no
longer withhold the taxes. Medicare withholding
is eliminated Saves Corporations 7.5 of every
employees wages Saves Individuals 7.5 of
their wages Saves self-employed 15 of their
wages Along with the Income Tax withholding,
wage earners get an estimated 25 increase in
take-home pay
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NATIONAL RETAIL SALES TAX
23 IMBEDDED national sales tax on all NEW
goods and services 15 to cover FICA and 8
actual sales tax The only exclusion is
Education-related fees (i.e. tuition, fees,
etc.) Lets foreign visitors, illegals, drug
dealers, and others in the underground economy
help to pay for our countrys operation. Reduces
income tax reporting by 90 - from 400 million
to 40 million Allows collection agent (states,
corporations, etc.) to keep 0.25 of all taxes
collected. They become profit centers.
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PREBATE
Every LEGAL American household will receive a
monthly payment from the Government to cover the
necessities of life. Status will be renewed
each year Based on the Health and Human Services
Poverty Guidelines General rule of thumb 200
for first person and 70 for each
additional Payments to be made at the start of
the month via Direct Deposit, Debit Card, or
paper check.
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PREBATE
Fiscal Impact The estimated number of households
for 2007 is 113 million. Assuming 100 percent
participation of all eligible households, the
cost of the prebate would be 489 billion. For
comparative purposes, this amount is about half
of the amount of tax expenditures (standard
deductions, personal exemptions, Earned Income
Tax Credit, mortgage interest and charitable
contribution deductions, and various other tax
preferences) doled out under the current federal
income tax system that are repealed when the
FairTax is enacted. For 2006, the total of all of
these tax breaks exceeded 945 billion (estimate
by the Congressional Joint Committee on Taxation,
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Family of 4 earning 48,000 per year 4,000 per
month State/local taxes (6) - 240 Mortgage
- 800 Cars (2)
- 400 Insurance
- 400 Cell phones -
200 Savings - 200
2,240
untaxed Taxable purchases 1,760 _at_ 23
404.80 Federal Tax Burden Prebate
559

0 Total Federal Tax Burden

154.20 Additional
Spendable Income
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COMMON OBJECTIONS Will spawn a huge
underground market or black market Tax will have
to be at least 50 Never eliminate the Home
Interest Deduction Charities will suffer without
the Charitable Deduction You cant lower taxes
on everybody and still bring in the same
revenue Congress will have both a Sales Tax AND
an Income Tax Must repeal the 16th amendment
first Its a Tax Break for the Rich .
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COMMON OBJECTIONS Will spawn a huge
underground market or black market 85 of all
retail sales in the US are via Big Box stores
(i.e.. Wal-Mart, Sears, etc.) Computers at
check-out control the activity not
individuals IRS currently admits to at least 25
non-compliance unofficial estimates put it
closer to 40 . States will monitor business
license holders to insure compliance Non-complian
ce will carry serious fines and penalties
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COMMON OBJECTIONS Tax will have to be at
least 50 The only negative study to arrive at
this conclusion was performed by the Brookings
Institute and omitted Food and Medicines from the
base due to political realities. When you
narrow the base, you necessarily must raise the
rate Independent studies by Harvard University,
Boston College, Stanford University, the Heritage
Foundation and the Cato Institute all came within
or 3 of the proposed 23
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COMMON OBJECTIONS Can never eliminate the
Home Interest Deduction By definition, a
deduction is introduced to reduce the amount of
income tax you owe. If you dont owe ANY income
tax, what are you deducting it from? The
majority of Americans do NOT itemize or make use
of the Home Interest Deduction.
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COMMON OBJECTIONS Charities will suffer
without the Charitable Deduction Nobody gives to
Charity for the deduction Would you give away
10,000 to get a 3,500 reduction in your tax?
Why not just pay the extra 3,500 and pocket the
remaining 6,500? Every available study shows
that people are more willing to give to charity
when they have more disposable income.
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COMMON OBJECTIONS You cant lower taxes on
everybody and still bring in the same
revenue This is true. However, you can bring
more people into the base. Foreign
Visitors Illegal Aliens Anyone being paid
under the table Drug Dealers Pimps /
Prostitutes Even little kids selling lemonade -
when they buy lemons and sugar.
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COMMON OBJECTIONS Must repeal the 16th
amendment first Without a current tax plan in
place, the US would have no source of revenue.
That would be totally unacceptable. Once the
FairTax is in place, repeal of the 16th amendment
will be almost unanimous. Remember, the 16th
amendment only AUTHORIZES Congress to implement
an Income Tax. It doesnt REQUIRE it.
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COMMON OBJECTIONS Congress will have both a
Sales Tax AND an Income Tax H.R. 25 includes
abolishing the current Internal Revenue Code. It
also sets up a Sunset Clause where the FairTax
is repealed and the Income Tax is reinstated if
the 16th amendment to the Constitution is not
repealed within 7 years. We currently have both
with taxes imbedded in everything we buy
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COMMON OBJECTIONS Its just another Tax
Break for the Rich The Rich currently are
responsible for over 60 of the purchases of new
goods in the US. As they purchase more, they
will pay more in taxes. With the prebate, low
and lower middle income families will pay NO
FEDERAL TAXES.
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COMMON OBJECTIONS Its just another Tax
Break for the Rich The Rich currently are
responsible for over 60 of the purchases of new
goods in the US. As they purchase more, they
will pay more in taxes. With the prebate, low
and lower middle income families will pay NO
FEDERAL TAXES. ---------------------------------
--------------------------------------------------
-------------------------------------- Finally,
SO WHAT? What is the purpose of taxes
fully fund the government or declare war on the
rich? If you get all of the entitlements you
are eligible to receive AND pay no Federal taxes,
why should it matter what anyone else pays in
taxes?
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WHAT CAN YOU DO? Visit FairTax.org for more
information. Use the tax calculator to see your
anticipated tax burden Contact your congressman
and urge him/her to co-sponsor H.R. 25 (202)
224-3121 Urge congressional candidates to add
adoption of the FairTax to their campaign
goals Tell your friends and LIKE it on
Facebook
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