As a private citizen, I observed that the Fair Tax slogan -- "Eliminates All Federal Income and Payroll Taxes" -- is a deliberate deception. All of the taxes that the Fair Tax seeks to "eliminate" will simply be "replaced" with one 23 percent to 30 percent national consumption sales tax. Replacement does not equal elimination.
Among its many problems, I find these about the Fair Tax (U.S. House Resolution 25) extremely objectionable:
- Revenue neutrality (requiring no reduction in federal spending or that spending be constitutional);
- Progressive nature (allowing increases over time);
- Entitlement mentality expansion (providing monthly government "prebate" checks to all households);
- Tax swap nature (focusing on class warfare).
While the income tax needs to be eliminated, the IRS needs to be abolished and the 16th Amendment to the U.S. Constitution needs to be repealed, the Fair Tax legislation deals with these issues ineffectively and distracts people from the bigger problem.
Emblazoned across the top of our currency is "Federal Reserve Note." This paper is printed out of thin air, not being backed by gold or silver. One dollar today is worth four cents compared to one dollar in 1913, the year that Congress -- without the constitutional authority to do so -- created the Federal Reserve, our central bank. The "Fed" is a private bank run by unelected officials we cannot hold accountable.
Every penny of the federal income tax is used to pay our public debt, which topped $9 trillion for the first time this year. Debt ceilings have been extended time after time because the federal government is too big, does too much and spends more than it takes in.
During the Bush presidency, government spending has increased by about 75 percent. Comptroller General David Walker reveals some shocking facts on www.GAO.gov.
What can we do?
- Recognize that mounting government debt endangers the financial future of our children and grandchildren. Federal spending must be cut immediately.
- Understand what we've been conditioned to believe, and wake up. There was no permanent income tax until 1913, and the 16th Amendment was ratified to prevent the Supreme Court from ruling the income tax unconstitutional, as it had done in 1895.
- Demand that government stop trying to be all things to all people and return to constitutional limits. Many programs that the government has taken on should be returned to private, philanthropic and charitable organizations that can run them more efficiently, with better results and at lower costs.
- Embrace the concepts of personal responsibility and financial self-sufficiency.
- Realize that the collapse of the dollar is all globalists need to merge Canada, the United States and Mexico into a North American Union, with the "Amero" as our common currency.
Ron Paul wrote, "Only when the people demand the federal government stop trying to meet any and all demands, and instead return to a constitutionally limited republic, will the list of programs subject to waste, fraud and abuse be dramatically reduced."
Vicki Simons is a taxpayer advocate and a founding member of the Aiken Taxpayers Association. She has spoken before groups of elected officials on behalf of taxpayers .