Political Contacts
Letter to Congressional Representatives Voicing Opposition to H.R. 25
 

Dear Senator/Representative,

I am disturbed by what H.R. 25, also known as the FairTax Act of 2003, attempts to force upon the unsuspecting American people. There is a much better idea available, NESARA, The National Economic Stabilization and Recovery Act. More information about NESARA is available at http://nesara.org.

FairTax exempts nothing and taxes all retail sales events. That means all necessities of life—food, medicine and mandated expenses—all will be taxed.

To “offset” this violation of natural rights, the FairTax bill proposes a monthly rebate to “qualified families.” This action clearly voids some of the reasons for abolishing the income tax—the intrusion of government into our private lives and the continuation of the social welfare state. Americans have had enough of this legal plunder mind set.

Qualified family eligibility is dependent upon an administratively defined poverty level, with Health and Human Services defining that level. The government-by-administrative-agency nonsense continues. Worse yet, the Social Security Administration stays involved in the tax game because that agency has been delegated as the agency to mail the monthly checks. No family member may be counted toward the rebate unless the family member is assigned a social security number. So much for privacy and the end of that obnoxious number.

Furthermore, to become qualified, families must register annually. Fail to register every year and families lose their eligibility for receiving these rebates.

Almost comically, if not so sad, FairTax excludes family members who are incarcerated, or will be incarcerated. This is a strange concept. Apparently the entire reason for the rebate program is to negate the regressive effects of the tax on essentials of life, especially to those considered living below the so-called state-defined poverty level. Well, nobody needs to be a rocket scientist to know that most of the people who are incarcerated are people who live below the poverty level! Anybody smell something rotten here under the table?

Lastly, notice that the natural rights of only “qualified” families are acknowledged. The rest of America is screwed. Legal plunder continues.

Under FairTax, the federal government still will be in the social welfare business, handing out checks. Proponents of FairTax claim no exemptions are necessary because to do otherwise will promote special interests lobbying. Yet, they turn right around and provide exemptions to so-called “qualified” families, instead of straightforward exemptions at the cash register, they keep their dirty government noses in people’s lives. Well, everybody has a special interest in working, eating, housing, receiving medical care and buying insurance. So what’s hard about exempting essentials of life and simply getting government out of our private lives? The entire rebate process is repugnant and preposterous.

The question must also be asked, what are the administrative costs of this complicated rebate process, opposed to simple, straightforward at-the-counter exemptions? And what are the administrative costs associated with the complicated system of credits provided by the bill?

To add salt to the wound, although the working class pays the sales tax, purchases made for business/trade purposes are exempt from the sales tax. Perhaps now people can see why many businesses, corporations, and trade associations are in favor of the bill. Not only has big business, that is, big contributors, been relieved of the corporate income tax, capital gains taxes, depreciation schedules, and paperwork on employee withholding, those companies also will be subject to NO national sales taxes on any business investments. Who is left with the burden of the national sales tax? The working class of America. Surprise! Surprise!

FairTax attempts to tax barter transactions. Barter is not a commercial retail event and is not taxable. FairTax will convert an honest transaction into a crime. Shades of the current Internal Revenue Code.

FairTax requires sellers to establish bank accounts. As with the income tax, we smell a few unlawful seizures around the corner, as well as a few fishing expeditions by the taxing authorities. Under NESARA, sellers are liable to pay the tax. Period. That is all that is needed. Bank accounts are irrelevant, nor should any person be coerced into opening a bank account. So much for financial privacy and protection of rights!

FairTax requires sellers to post bond. There is no reason for such nonsense.

Worse, FairTax requires all sellers to register with Uncle Sam. FairTax states that any seller who fails to register is not allowed to sell! In other words, failing to register converts the normal business of selling into a crime! Again, so much for privacy. Instead, we have nothing but a clever disguise for State control.

Of course, because FairTax will tax services, that essentially means all laborers and contractors must register with the state. Furthermore, taxing labor is a time bomb waiting to explode because such a tax is essentially a tax on income without the name.

FairTax eliminates all payroll taxes and that is why the initial FairTax sales tax rate is much higher than the rate proposed by NESARA. However, although neither bill attempts to resolve the Social Security and Medicare mess, NESARA recognizes this legal plunder welfare madness is not going away overnight and leaves the payroll taxes untouched. FairTax eliminates the payroll taxes, but employers still will have to report wages paid in order for employees to receive Social Security credits.

However, there is a much subtler problem with the FairTax sales tax rate that shows the deviousness of the bill. FairTax declares an initial rate of 23%, but after 2003 the sales tax rate will be the sum of the declared general revenue rate (14.91%); the old age, survivors and disability insurance rate; and the hospital insurance rate. The first rate is currently 6.2% and the latter is 1.45%. In other words, after 2003, the sales tax rate would be 22.56%. However, this calculation method is terribly deceptive. Notice that with an increase in any of those rates, the sales tax rate also increases. The kicker is that the Feds can increase the sales tax rate by increasing legal plunder benefits! With the current Social Security and Medicare mess, what do you think will happen to the future sales tax rate?

FairTax has the buyer being liable for the tax when no receipt is exchanged. Why the exception? Such a provision makes no sense and NESARA dispenses with such nonsense by specifically stating that only the seller is liable for collecting the tax. Such a provision makes innocent incidental purchases a crime.

FairTax essentially places the burden of proof on all accused. That is, any person accused of failing to pay a tax will be guilty until proven innocent. As with the income tax, here we go again! Burden of proof must be on the government. Period. Worse, FairTax maintains one of the most invasive features of the current tyrannical income tax: the authority to summons, and to conduct examinations and audits. NESARA provides a simple, straightforward administrative process in tax disputes. Under NESARA, should the National Tax Service (NTS) believe a tax has not been paid, the NTS merely prepares a statement of the alleged taxable activity and issues an Assessment/Preliminary Notice of Deficiency. That’s all that is needed and the burden of proof stays where it belongs—on the government. Should an alleged taxpayer desire to dispute the alleged tax, the alleged taxpayer can certainly introduce his or her books and records as evidence to quash the allegations, but nowhere does NESARA authorize the tyrannical practice of continuing the madness of issuing summonses and conducting examinations, audits and fishing expeditions. Such practices are pure tyranny and invasions of privacy.

FairTax states that government purchases are subject to the sales tax. That makes no sense. Every time the government buys something, it taxes itself, and pays itself the revenue? Give us a break! Why pay the cost of all that extra accounting and paperwork? Isn’t the national sales tax supposed to reduce paperwork and administrative costs?

FairTax allows for withholding of income for non-resident aliens. So much for the so-called abolishment of the personal income tax.

H.R. 25, is a terrible start, and we can do better. Much better. Congressman Archer said that for several years. NESARA not only provides fiscal policy reform, but monetary policy reform. With NESARA, the purchasing power of the currency will stabilize. FairTax has no such provisions.

FairTax also provides no relief from current banking laws.

Both FairTax and NESARA are designed to be revenue neutral. That means neither bill changes the current income and outgo of revenues collected. Other than that similarity, the differences between NESARA and FairTax are clearly obvious.

FairTax addresses only symptoms, not root causes. The bill continues the intrusion of government into our private lives. FairTax is regressive in nature because not all households will qualify for rebates, and the bill contains no provisions to resolve the root problem, an unsound money system. Tax reform is a good start, but ultimately futile without monetary reform. NESARA solves both problems.

NESARA is built upon the foundations of life, liberty and property, does not unduly tax the necessities of life and does not support intrusions into private lives. NESARA was written from within the grass roots of America, not by special interests. That’s why NESARA will work. FairTax is not the answer.

Respectfully,

Your constituent