October 06, 2012

80 Economists Say FairTax Wins the Debate! | FairTax Friday



Freedom is hammered out on the anvil of discussion, dissent, and debate. - Hubert H. Humphrey

80 Economists: FairTax Wins the Debate! 

Simple Tune Up

When it came to taxes and small business during the Presidential debate, I couldn't help but think of the ageless question: "What's the correct way to hang toilet paper?"

Believe it or not people vigorously debate the question online, in newspaper columns, around the water cooler and at the dinner table! I always think, what difference does it make – your position doesn't really change anything, it's just a variation on the same theme.

During the first Presidential debate both candidates discussed the plight of small business, their plans for the economy, taxes and job growth. They also explained on how their plans would continue tax breaks, lower tax rates or reduce deductions, credits and exemptions. 

Just like the toilet paper debate, what we really heard was a variation on a theme that just isn't working. 5.1 million jobless workers are collecting unemployment benefits, 8.4 million jobless Americans have given up looking for work since January 2009, and the unemployment rate would be 11% if these individuals were included in the count! 

What the American people want is a tax system that can jump-start the economy, energize job growth and slash business compliance that drives up the costs of U.S. goods both at home and overseas.

There is only one plan that does this and more - the FairTax® Plan. The FairTax doesn't tinker around the edges, isn't a variation on a theme and doesn't just shift the status quo chairs on the Titanic. It is bold and as Robert Frost once said, "Freedom lies in being bold."

We need your continued help in telling everyone you know that the FairTax Plan represents hope for millions of Americans; hope that, with the FairTax, America can once again enjoy the kind of economic freedom and prosperity that allows hard working individuals to build rewarding careers, thriving businesses and realistic plans for the future.

When you tell your friends and neighbors about the FairTax, be sure to mention that it is the only tax replacement plan that is backed by millions of dollars in research and  80 economists. That's information worth sharing!

One more request: If you've already shared FairTax: Fire Up Our Economic Engine, please share it again and again and again.

Be bold, demand change; a simple tune-up is not going to get the job done.

Until next week,


Cindy Canevaro

FairTax National Campaign Manager

P.S.: This week is the Vice Presidential debate.  If you Tweet, consider Tweeting @FairTaxOfficial during the debate on October 11 – especially when the candidates discuss taxes and tax reform. 

The FairTax in the News

Stop Bribing Companies to Lever UpThe Motley Fool

Go ahead and pull out an income statement for your favorite stock. I'll wait.

You'll notice that there is a line called "Interest Expense" that comes before the "Tax Expense" line. Now notice the absence of similar lines for "Dividend Expense" and "Share Buyback Expense.

No, I'm not trying to bore you with an accounting lecture. I'm trying to point out a travesty of modern finance: the unequal treatment of debt and equity, better known as the tax-deductibility of interest.

Thanks to interest deductibility, our tax code unfairly benefits companies that lever themselves to the moon -- e.g., big banks -- while putting those who choose equity financing -- like Apple -- at a comparative disadvantage…

I think a more comprehensive solution is in order. And that solution is moving to a consumption-tax-based system like the FairTax.

Under the FairTax, the corporate income tax, dividend tax, capital gains tax, payroll taxes, and individual income taxes (including any taxes on interest) would be completely eliminated. Instead, a national sales tax of 23% would be levied on all new goods and services. An "advanced refund" mechanism would also be put in place to ensure that the tax does not hurt those below the poverty line. I'm not the best one to explain the details, so I recommend checking out the FairTax website.

If nothing is taxed besides sales, there can be no perverse tax incentives to lever or delever. Debt and equity are truly on an equal footing, as they should be.

Letter: Support FairTax - The Topeka Capital-Journal

By now we've all heard a presidential's candidate comments around redistribution of the wealth and 47 percent of Americans not paying income taxes.

These comments highlight, yet again, that our income tax system is broken and our nation is suffering, most especially young Americans ages 18-29. In fact, 1.7 million of these young people have been jobless for the past year. This is the highest unemployment rate for that age group since World War II. It is a generation in danger of becoming the "lost generation."

The FairTax is the solution. The FairTax is a comprehensive plan to replace federal income and payroll taxes with a consumption tax on new goods and services. While permitting no exemptions or exceptions, the FairTax provides a monthly, universal "prebate" or rebate, that ensures each household may consume tax-free up to the poverty level, thereby making the FairTax progressive...

- E. M. Mosiman, Topeka

The October FairTax Webinar 

With Special Topic: States with Sales Tax & No Income Tax: How They Compare

When: Thursday, September 25, 2012

Time: 8 pm Eastern, 7 pm Central, 6 pm Mountain, 5 pm Pacific

Where: At your personal computer, anywhere!

Why: To provide an interactive forum for people who cannot get to local meetings to learn about the FairTax and to present special topics that are frequently misunderstood or not generally discussed.

Who: Join Marc Manieri, webinar producer and host from Orlando, Florida. In their fourth year, Marc's webinars draw national participation from seasoned FairTax supporters as well as those just getting introduced to the FairTax.

Join: To participate, register here and watch for the confirmation email. For more information contact Larry Walters at repeal_16@earthlink.net.

Link for October 5, 2012

Featured Video:

Economy Can Be Rebuilt Video

FairTax: Fire Up Our Economic Engine 

 Ways to Engage:

- Contact Congress

- Engage and get updates on Facebook

- Follow us on Twitter

- Donate to the cause

- Find a local leader

- Distribute handouts

- Get FairTax gear

- Send an e-card

- Watch the webinar

- Join FairTax 2012

- Contact the media

- Get FairTax graphics

- Understand basics

FairTax Fact:

 Real wages are 10.3 percent, 9.5 percent, and 9.2 percent higher in years 1, 10, and 25, respectively than would otherwise be the case!

Featured Paper:

Economist Letter - LG

80 Economists: An Open Letter to the President, the Congress, and the American people


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