By Mark Anderson —
Has the late, great JimTraficant’s flat sales-tax proposal outlived the former Ohio Democratic congressman and entered the legislative pipeline? This could be the case, as Senators Gerald W. “Jerry” Moran (R-Kan.) and David Alfred Perdue, Jr. (R-Ga.) have introduced a bill designed “to overhaul and simplify the American tax system.”
The bill, S. 155, was read twice and referred to the Committee on Finance. The other cosponsors at this writing are Senators Pat Roberts (R-Kan.) and Johnny Isakson (R-Ga.). Its House companion bill is H.R. 25.
Moran’s bill, in many respects, uncannily resembles the federal consumption tax proposal put forth by Traficant.
What the Moran bill lacks, however, is Traficant’s other major provision to divorce the Federal Reserve central bank, which is owned and controlled by the Rothschild dynasty. Jim also envisioned Congress reviving its dormant sovereign power to stop being a tenant and issue money directly interest free—instead of renting Fed money at perpetual interest.
Traficant, who was railroaded by fellow congressmen and imprisoned for seven years on bogus corruption charges, would often say: “The Fed can do business elsewhere, just not with the United States. I would say to them, ‘We’re no longer in a partnership with you; we want a divorce!’”
Moran said: “I joined Senator Perdue . . . in introducing the Fair Tax Act of 2015. . . . Our proposal, known specifically as the ‘Fair Tax,’ replaces our complicated and costly tax system with a flat national consumption tax and would eventually close the Internal Revenue Service.”
The critical words are “replaces” and “eventually.” Americans would need rock-hard assurance that the federal income tax would be promptly replaced and would not be resurrected.
Over several months before his untimely death due to an apparent farming accident last September in Ohio, Big Jim traveled as much as he could from town to town, conference to conference, to promote his Project Freedom USA (PFUSA).
With PFUSA, Traficant strove to abolish the federal income tax and the IRS, while replacing that 100-year-old tax with a federal “sales,” or consumption, tax.
Two of Jim’s key points were:
1.) Tying federal taxes to purchases to get the tax man out of people’s personal finances. This means no more filing 1040s and no more scraping for deductions.
2.) Everyone making a purchase in America—be they a U.S. citizen, those visiting on visas or even illegal aliens—could not easily avoid paying into the system.
So did Moran or Traficant write the following statement? “[Repeal] federal corporate and individual income taxes, payroll taxes, capital gains taxes and estate and gift taxes, and every American would be allowed to purchase goods and services tax
free up to the national poverty level.”
The answer is Moran—sounding a lot like Traficant.
But Traficant felt that used goods should not be charged a sales tax—the tax only would apply to new stuff. Moran’s bill is detailed and parts of it may sound pleasant to some: Title I calls for “income taxes repealed” (Sec. 101), “payroll taxes repealed” (Sec. 102) and “estate and gift taxes repealed” (Sec. 103).
However, Moran envisions enacting the flat tax at a 23% rate “of the gross payments for taxable property or service,” according to this reporter’s reading of his bill. Moran’s bill explains that this hefty rate is a combination of the “general revenue rate of 14.91%, plus the old-age, survivors and disability insurance rate, and the hospital insurance rate.”
Traficant initially proposed 25% and dropped it to 15%, although he felt the tax rate could be gradually lowered to a tiny percentage as the Fed is divorced and debt-free United States notes replace Fed notes. Evidently Moran isn’t going there, although more details, be they good or gory, will emerge—if the bill gets traction.
Moran’s statements for S. 155 included the remark: “I am pleased to now lead this effort after co-sponsoring this legislation since 2006.” So he’s been at this flat tax thing for nearly 10 years.
A major concern among flat-tax critics is that a flat sales tax would be highly regressive and hit the middle and lower classes the hardest. Supporters counter that the absence of the federal income tax would loosen up a tidal wave of purchasing power, investment, job creation and debt-retirement.
Yet it would be greatly helpful if the end the Fed and monetary reform measures raised by Traficant were front and center, thereby rendering the tax measures less urgent. And while Kentucky Republican Senator Rand Paul’s efforts to resurrect a full Fed audit are laudable, members of Congress need lots of schooling from constituents to get their priorities straight.
The “package deal” of the Fed (create debt) and federal income tax (pay the impossible debt), born in 1913, needs to be deep-sixed, with cement poured over the top, for debt repudiation and real freedom to ever have a chance.
AFP Roving Editor Mark Anderson is a veteran reporter who covers the annual Bilderberg meetings and is chairman of AFP’s new America First Action Committee, designed to involve AFP readers in focusing intensely on Congress to enact key changes, including monetary reform and a pullback of the warfare state. He and his wife Angie often work together on news projects. Write to Mark at [email protected]
From fairtax.org web site:
– The fair tax is replacement, not reform.
– Food and medicine are not exempt.
– Yes, of course Congress can raise the FairTax rate just as it does the income tax rate.
– The FairTax Plan is devised to be revenue neutral for the FIRST YEAR of operation. It raises the same amount of revenue as is raised by current law. After the FIRST YEAR, revenue is expected to rise.
– What will the rate of the sales tax be AT THE RETAIL COUNTER? 30%.
– Is there ANY provision in the FairTax bill to prevent both an income tax and a sales tax? NO.
– The FairTax makes the economy much more dynamic and prosperous. Consequently, FEDERAL TAX REVENUES GROW.
Let’s move on to who sponsored H.R. 25 (the “Fair Tax” bill). Rob Woodall, rated only a 66% Conservative/Freedom Index score:
– Woodall voted NO on HR 4435 – to prohibit the Indefinite Detention of Americans.
– Woodall voted YES on H J Res 59 – to INCREASE the discretionary spending caps to $1.012 Trillion and $1.014 Trillion in fiscal years 2014 and 2015.
– Woodall voted NO on HR 2397 Amendment 54 – to prohibit funds to “be used for United States military exercises which include any participation by the People’s Republic of China.”
– Woodall voted NO on HR 2397 Amendment 70 – to end the blanket collection of records under the Patriot Act.
– Woodall voted YES on HR 1947 – to authorize $939 Billion through fiscal 2018, rural development.
– Woodall voted YES on HR 6018 – The Foreign Relations Authorization Act for Fiscal Year 2013 authorizes $9 billion for the State Department’s diplomatic and consular programs, $1.6 billion for dues to international organizations (about $0.6 billion for UN regular budget dues and about $1 billion in contributions to 43 other UN-system, regional, and non-UN organizations), and $1.8 billion for contributions for UN peacekeeping activities.
Rob Woodall and his colleagues are not the least bit concerned about you or me. They are only concerned that everybody is not paying “their fair share,” and need MORE money to fund their costly and anti-Constitutional policies. And what better way than a blanket “fair tax,” that sounds “appealing” to some? If they WERE in fact sincere, why not vote responsibly, constitutionally, to rein in spending in the first place (see above record)? Why not sponsor a bill that repeals the 16th Amendment and the IRS and leave it at that, WITHOUT polluting HR 25 with 131 pages of words such as “prison,” “jail” and “fines.” The answer: They want your money, They want “no escaping it.” They will postpone, bribe, lie and steal from everybody and anybody to get it. This bill is merely a ploy to sidetrack those of us who want to abolish the IRS, Fed, 16th and 17th.
Everybody here should know by now that more laws, different laws, governments, only make things worse. That is precisely why we are where we are today. The only solution is to begin REPEALING some the millions upon millions of laws that are already in place – NO replacements necessary.
Related: Julie on Internet Sales Tax
AWESOME. BTW, what was the title of that book that Ron Paul wrote? Oh, yeah, that’s it: END THE FED.
Those Senators ought to consider closing the “Fed” forever, too!