October 04, 2010

#Mi01- Doc Benishek Attacked by McDowell Misrepresenting the FairTax ~ MiFairtax.org


Michigan FairTax Association
Truth in Taxation


October 1, 2010
Contact: Roger Buchholtz  (269) 345-0950
                President, Michigan FairTax Assn
McDowell & DCCC mislead public on Banishek's support for HR 25, the FairTax Act, that will - if enacted - END the IRS and government's claims upon payroll and income.
(Kalamazoo, MI) - In an effort to get a "leg up" on his rival in Michigan's 1st Congressional District contest, candidate Gary McDowell (D), and his surrogates at the Democratic Congressional Campaign Committee (DCCC) have been running attack ads against Republican rival, Dan Benishek. These ads mislead Michigan voters by misrepresenting the proposed FairTax Act a bill currently in Congress which Banishek supports. The misrepresentation is similar to that used by the DCCC to attack FairTax-supporting candidates across the country.  

Michigan FairTax's President, Roger Buchholtz, remarked,

"McDowell's misleading ads imply that the FairTax is a proposed new sales tax that would be levied on top of all other current taxes when, in actuality, it replaces most current federal taxes."

The FairTax - if enacted - will eliminate the IRS, and government claims on income, business and personal.  The FairTax will replace

 · the income tax,
 · Social Security & Medicare taxes and death,
 · inheritance tax, and
 · gift taxes

and replace their revenue with a

 · simple retail sales tax

that will save $500 billion each year in tax compliance cost - equivalent to $1,700 for every man, woman and child in America!

FairTax Ends Government's Claim On Our Income
Americans will no longer see the government "take theirs first" by withholding wage-earners' hard-earned dollars from their paychecks. Instead, the government will ONLY see revenue when families SPEND their money, deriving the benefit of a "new, at retail" purchase.

Rather than be subjected to income-tax filing deadlines, under threat of audit, interest, and penalties, citizens will - if the FairTax Act is enacted - simply, "pay it at the cash register." Americans will then be able to see their true tax burden for the first time in generations, as the tax will appear on every sales receipt. 

FairTax Ends Business Taxes Hidden In Higher Prices
Today, by taxing businesses and all the labor and materials in the production of goods and services, much of our tax burden is hidden in the price of the things we buy. A Harvard University study concluded that 22% of the price of things we buy are taxes buried/hidden in the price.  This hidden tax is paid by all of us when we buy American produced products.  To make matters worse, we pay again when we lose our jobs because our company is placed at a 22% competitive disadvantage compared with foreign produced products.

McDowell & DCCC: Controlling Citizens Through Income Tax Code
These attacks by the DCCC and some candidates are attempts to preserve the status quo, where politicians have power never intended by our Founding Fathers.  The FairTax eliminates this power by eliminating the buying and selling of tax favors which takes place under today's income tax system and corrupts our representative form of government resulting in an unresponsive and bloated government.

Buchholtz pointed out,

"Politicians, special interests, and lobbyists who represent them on Capitol Hill, see the FairTax as a threat to the considerable power they can exercise over individual and business behavior under the current tax system.

"Dan Benishek - and candidates like him across the country - exhibits the courage and leadership necessary to confront those who would keep us saddled with a failed income tax system."

He continued,

"The truth is that the FairTax will both reduce the cost of doing business in America, and it will stop penalizing our citizens who choose to work harder, save and invest. Together, these effects will make America the global destination for business, bringing jobs and prosperity back to our citizens."

FairTax information can be viewed at www.fairtax.org.

Michigan FairTax Association | PO Box 703 | Sterling heights | MI | 48311


  1. I've never seen an attack ad that specifically says that the Fairtax is in addition to current taxes. The only thing wrong with those ads is that they should say that Fairtax supporters want to add 30%, not 23% to the cost of everything we buy. That would be the truth, even if incomplete.

    Is the ad's kind of misrepresentation any worse than lying about the tax rate, or claiming that 22% in embedded taxes will be removed, or that $14 trillion in offshore funds will come rushing home, etc. etc.

    You can't fight a lie with more lies.

  2. Have you took the time to figure out the 23/30% numbers? Fairtax is an exclusive tax, not built into the price of product or service. How can you get 30 out of 23%? A one dollar USA made product, not import, has about 22% tax built into the price. By taking that out you end up with 78 cents. Times that by 23% and you get 96 cents, 4% less then original.

    Note that some of the federal tax will not come out of the price of American product as employees will keep their gross pay, making for a huge pay increase. Also note that all citizens will be tax free up to the ceiling of poverty.

    As to how trillions of dollars will cme back to the USA for investment, you donnot have much respect for the American enterprise. It is a fact that offshore investing is done to hide from taxation. Also, the people under the table working, illegal activities to include iilllegal immigrates will be paying tax at consumption, something they don't do now and will create greater tax revenue, lowing tax%.

    Also, by making imports taxable equally with American product, will create jobs gallore.

    If you go around using talking points to push your socialist agenda, you had better not be callling others liars.

  3. R.George,

    Wow, you don't seem to understand the Fairtax at all. It clearly is a 23% inclusive tax that is built into the retail price of new goods and all services. Two thirds of that 22% in embedded tax costs belong to the employee, not the employer. Based on 2007 actual revenue data, business related tax costs, including income taxes, payroll contributions, and compliance costs amounted to 9% of sales. Take out 9% and add the 30% Fairtax,(not 23% as you erroneously stated), and retail prices will rise by 18% on average. (1/00 x .91 x 1.30 = 1.18). You can't honestly believe that we will get 100% of our gross pay/pensions and retail prices will drop by 4%? That is the long discredited "free lunch" myth started by Boortz in book #1. AFFT has been scrambling ever since to correct that nonsense.

    You may think it is a good thing that all citizens up to the (AFFT adjusted) poverty level won't pay any taxes. I don't agree at all. Under current law, less than 1 million workers pay no federal income tax and also qualify for refundable tax credits such as the EITC in an amount that totally offsets their 7.65% payroll contribution. Under the Fairtax, 20 million families will pay no net federal tax due to the prebate and the added take home pay. 1 million versus 20 million? Is that what our country is all about. Everyone should pay something to run the federal government. The Fairtax isn't fair.

    I have great respect for American enterprise, but I don't have any respect for Fairtaxers promoting that $14 trillion in offshore wealth owned by Americans. Please read the 2005 white paper from the Tax Justice Network, a group dedicated to identifying offshore wealth. In 2005, there was $1.6 trillion in offshore wealth owned by North Americans, and there are 23 sovereign nations in NA. A good estimate for American owned offshore wealth is $700-800 billion. And those funds won't come rushing home absent some sort of IRS amnesty clause in HR25.

    I have been shot at and missed in two wars, defending your right to say any foolish thing you want to say, but I can assure you I have no Socialist leanings. I support a national consumption tax, just not the Fairtax scheme.

  4. lol, don't understand? the 23% is not inclusive but is an exclusive tax, charged after purchase. Todays tax is inclusive, in the product price. Food for example has labor costs in it. You say that income tax is paid by the employee. Who pays the employee? Where does the employer get the funds to pay him?

    You say we don't need a safety net for all. We should not have a prebate system to protect against starvation. Well by making it so all get the same break tax wise, it is truly a general welfare matter. Your number of one million workers not paying ta leaves out the people who don't work for lack of jobs. Fairtax takes the tax out of the product price and puts it on at pooint of sale which will share the cost with imports. This will create jobs, which will create opportunity which will end welfare programs for lack of need.

    Good idea on the Fairtax amnesty being included in HR25.

    I too am not a socialist and know full well the reason why democracies last about 200 years. We are near that here in USA and the only way to change our free lunch stupidity is to come up with a social program taht will entice these lost souls to follow a way back to jobs for all. The prebate progam was not a part of the original fairtax plan, but was included as of late because of the above.

    YOur response here has been very respectful and am glad you took the time to do so. Please follow up on points stated. We must get to the truth of our plight of manufacturing to overseas and get it back.


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