



APP Bulletin 100228 February 28, 2010
The Independent American
The United States Constitution, before the 16th Amendment,
limited Congress to the following power to raise federal revenue.
Article I - Section 2, paragraph 3. "....direct Taxes shall be
apportioned among the several States which may be included within
this Union, according to their respective Numbers...."
Article I - Section 8. "The Congress shall have power to lay and
collect taxes, duties, imposts and excises, to pay the debts and
provide for the common defense and general welfare of the United
States; but all duties, imposts and excises shall be uniform throughout
the United States;"
Article I - Section 9. "No capitation, or other direct, tax shall be laid,
unless in proportion to the census or enumeration herein before
directed to be taken."
Our present federal income tax is a direct tax that is imposed
upon the earnings of the labor of every U.S. citizen. It is a direct and
unavoidable tax that is enforced with penalty for failure to properly
report on the IRS Form 1040.
In contrast, the Fair Tax is no different than an excise tax. Not
only is the Fair Tax not a direct tax in agreement with the law of
United States Constitution before the 16th Amendment, since the Fair
Tax is not a direct tax, paying the tax can be avoided by not buying
the product.
People can choose to become independent by producing all
their needs at home such as their own food, clothing and energy
needs. They can become completely self sufficient without the need
to purchase anything from anyone. Under the Fair Tax, if we did
choose to purchase goods from some source, we would not be
required to pay federal taxes on used items such as autos, clothing
and all second hand items.
Some Americans ask the question, "Why does anyone consider
a 23% Fair Tax ( a consumption tax ) better than the current robbery?"
First of all, we all know that no tax will be enough to sustain the
present policy of spending and increasing debt. The politicians who
vote for increased spending rather than reducing the debt must be
voted out of office. Government operations will either be reduced by
intelligent design or by the inevitable results of an unsustainable
economy. Our hope is that, in this present economic crisis, we can
maintain law and order under the Constitution.
Independent Americans promote the Fair Tax for good reasons
such as overcoming the planned downfall of our Republic and
including the reasons outlined here:
1) The Fair Tax eliminates hidden or embedded taxes that are
added to the cost of a product at every stage of production. This
hidden tax is now about 22%. With the Fair Tax, U.S. manufactured
products will become 22% cheaper. Keep in mind that corporations
do not pay taxes without adding the cost of those taxes on to the price
of the product that they produce. For this reason, it is really only the
consumer who pays taxes.
2) The Fair Tax eliminates all investment taxes including
investment expenses for education, thereby, promoting new and
expanding business. This will restore our economy and promote jobs
for harmony in our law and order.
3) The Fair Tax will restore our economy which will help to
maintain funding for Entitlements that sustain the lives of Entitlement
dependent senior citizens and veterans (see Bulletin 091214) until
proper reform is accomplished.
(Without the Entitlement reform, we still face the prospects of the
unsustainable economy. Without the revitalized economy that can be
realized through the Fair Tax along with cuts in federal spending on
programs of socialism, the projected unsustainable economy will still
lead to the collapse of our economy. The enemy hopes to promote
our economic collapse and see us fall into the hands of their
communist oligarchy (see Bulletin 100219). They hope to enforce
controls over society as will be necessary to maintain the benefit of
their elite class.)
4) The Fair Tax allows citizens to receive earnings from an
employer without being required to deduct anything other than
possible state and local taxes and, at the same time, it restores our
freedom to become completely independent and free from all other
needs of paying federal taxes. We could choose to become
independent by producing all our needs at home such as producing
our own food, clothing and energy needs. We could become
completely self sufficient without a need to purchase anything from
anyone. If we did choose to purchase goods from some source, we
would not be required to pay federal taxes on any used items such as
autos, clothing and all other second hand items.
5) With the Fair Tax, if I should choose to hire help in my home
for whatever help I want, I will not be required to deduct taxes from my
employee's pay and give it to the federal government. If my garden
produces more than I can use and I decide to sell my produce to the
local market, I will have no requirement to pay federal taxes on that
income. The consumer who buys my produce from the market is the
one who pays the tax. The retailer is the one who collects the sales
tax and turns it in to the government tax collection agency.
6) If I should choose to invest in a serious for profit venture, the
money that I spend on establishing that business or producing that
product is free from federal taxes. All investments, all investment
returns and all savings interest returns are all tax free. With this
burden of paying taxes removed from everyone except the end
consumer and the retailer, investments, business and jobs will boom.
7) If the consumer, who pays taxes on food produce, has an
income at or below the poverty line and feels the need to report that
income to the federal government, the consumer will receive a tax
Rebate to cover such necessities. However, many people who work
for a living, including those people in the illegal underground economy
and illegal aliens, will not feel the need to report their income. They
will not receive Rebate. See the Fair Tax Act HERE and HERE.
8) The Fair Tax eliminates the ability of the federal government
to lay a direct tax on us as it now does on our earnings from our labor.
The elimination of the IRS with its direct tax authority also eliminates
capital gains taxes, death taxes and choice of lifestyle taxes as in the
marriage penalty tax. It eliminates taxing us directly for socialist
programs such as Social Security Insurance and the threatened
upcoming health care insurance.
With the elimination of the IRS and its direct taxation, we
would face no threat of being taxed on the number of sheep we might
own due to the sheep's production of greenhouse gases, etc. At the
present time, the IRS is able to put all these direct taxes on us by
virtue of forcing our signatures on the IRS Form 1040. The Fair Tax
eliminates the IRS along with its power for such control.
9) As are all taxes, the Fair Tax rate is adjustable up or down to
satisfy needs. Audits of the Comprehensive Annual Financial Reports
(CAFR) prove that investment fund income, such as is the case with
pension fund investment income, will usually generate enough
revenue from the investment funds to substantially lower the need for
tax collections.
10) A big difference with the Fair Tax is that hidden taxes will be
eliminated from the end cost of the finished product. Everyone will
then see the true cost of government reflected in the up front taxes
paid on their purchases. That will cause more people to have a
greater interest in finding ways to control the cost of government.
In God We Trust
An Independent American
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