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AMERICAN CONSTITUTIONAL RESEARCH SERVICE

1-16-05

In an article titled ANSWERING A FAIR TAX QUESTION in which Neal Boortz supports the so called Fair Tax proposal, he wrote:

“It doesn't matter that paying taxes will be voluntary under the Fair Tax plan. It doesn't matter that nobody pays the retail sales tax on the basic necessities of life.”

But the truth is basic necessities are taxed under the so called Fair Tax (FT) and all consumers pay the tax when purchasing basic necessities.

The architects of the plan have created what they call a “Family Consumption Allowance“ (FCA) which is a monthly check proposed to be sent by Congress to each American Household, intended to be earmarked by each household to offset taxes paid on the basic necessities of life, which in fact are to be taxed under the FT.

In essence, the so called FT proposal rations tax-free basic necessities, and rations them by the size of the FCA which is determined and set by folks in government.

Now, why should Neal Boortz be speaking out against the FCA rather then lend his support? Well, it promises to give Senator Ted Socialist Kennedy a very valuable gift: the family consumption carrot, which Kennedy and his socialists followers in Congress will promise to increase during election time to buy millions of votes to remain in power, just as these domestic enemies now do with the federal minimum wage, federal social security payments, federal aid to unwed mothers, and even federal corporate welfare___ the only difference is, the FCA, if enacted, would extend the socialist tentacles of government to every household in America with its monthly government check, completing the socialists takeover of America under a reform which promises to abolish the IRS and income taxation, but in substance and truth will only tighten the iron fist of government around the people’s productivity, while demanding the people to shamefully kneel [register with government] to feed from that same iron fist.


In support of the FT Neal writes in an article titled End of the income tax?

"The law establishing the federal income tax would be repealed, both for individuals and for businesses.”

“A constitutional amendment repealing the 16th Amendment would be sent to the states for ratification."

The old saying goes, if it sounds too good to be true it probably is.

What Neal doesn’t tell you is that even if existing statutory law establishing the federal income tax is repealed, and a constitutional amendment is adopted by the states repealing the 16th Amendment, Congress still maintains constitutional authority to impose an excise tax and calculate the amount to be paid from income upon corporations, death taxes, and a wide variety of other taxes calculated from income. For example see: FLINT v. STONE TRACY CO., 220 U.S. 107 (1911) upholding such a tax prior to the adoption of the 16th Amendment, and upon the privilege of doing business in the corporate capacity . Also, see SPRINGER v. U S, 102 U.S. 586 (1880) another case upholding a tax calculated from income prior to the adoption of the 16th Amendment.

Now, what about closing down the IRS? Is this a reason for Neal to support the FT proposed legislation?

Although the IRS may be abolished, the Fair Tax legislation creates a new internal revenue collection agency and would actually increase the number of tax gathers beyond businesses which are to collect the tax, expanding the federal governments reach over tax gatherers to include individual tradesmen and service people, entrepreneurs, and, even ordinary working people engaged in self employment, forcing them to "register" with folks in government in order to pursue a livelihood [see SEC. 502. REGISTRATION]. In short, the FT proposal would require these poor souls to become a modern-day regiment of enlisted tax gathers for government, increasing the number of tax gathers throughout the United States to an all time high, and compel them to maintain burdensome and inquisitorial records and reports under a penalty of perjury to satisfy the wants and fancies of tyrants in government___ all the above to be implemented under the pretext of the "Fair Tax" proposed reform which promises to abolish the IRS and income taxation, but in substance and truth both are empty promises!

As to Neal’s assertion that the FT is voluntary, the truth is, the tax is not voluntary in that it taxes the necessities of life! If it did not tax the necessities of life, as our Founding Fathers intended when allowing taxes on specifically chosen articles of consumption, then, and only then could one truthfully assert the tax is voluntary. But the so called Fair Tax does burden the necessities of life at the point of every purchase.

So, what is the solution? The solution is found by compelling Congress to return to our Founding Father’s original tax plan which was never intended to allow Congress to create the oppressive and despotic system of taxation America’s labor, businesses and industry now suffers under. In addition to the fairness of our Founding Father's original tax plan, not only did it pave the way for America to become the economic marvel of the world, but it provided a number of built in checks and balances encouraging Congress to practice sound fiscal policies, and made each state’s Congressional delegation immediately accountable to its state’s legislature and governor if Congress created a deficit during the course of a fiscal period.

Can we compel Congress to return to our Founding Father’s original tax plan? Yes!

A return to our Founding Father’s original tax plan is far less complicated than the FT proposal. In addition, a return to our Founding Fathers plan does not make the promises of the FT, but rather, compels Congress to carry out those promises! How is this to be done? By following the advice of Thomas Jefferson:

"In matters of Power, let no more be heard of confidence in men, but bind him down from mischief by the chains of the Constitution."

A simple amendment to the Constitution repealing the 16th Amendment with specific wording that Congress is “…henceforth prohibited to lay any tax or burden which is calculated from profits, gains, interest, salaries, wages, etc., i.e, any lawfully realized money…” will, unlike the so called Fair Tax, bring us back to a fair system of taxation and remove the burdens complained of by those promoting tax reform.

Those interested in a summary of the Founding Father’s original tax plan and how it was intended to work, can find this information in an article titled EXPOSING THE FAIR TAX HOAX ___ scroll down and start reading at:

American Constitutional Research Service
Before the
Committee on Ways and Means
United States House of Representatives
June 1995

To study the proposed Fair Tax legislation see: H.R.25, and S.1493

Sincerely,
JWK



“…..with all these blessings, what more is necessary to make us a happy and a prosperous people? Still one thing more, fellow-citizens—a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicities“. Thomas Jefferson, First Inaugural Address



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