Posts Tagged economy

JOBS JOBS JOBS

Two competing Presidential campaigns are always going to cover a wide swath of current topics. The candidates will meet with politically active groups from several of the states and speak to issues held dearly by each of them. However, if the tenor of this campaign year is to be summed up in just one word, it would be jobs. The reason that jobs have become the focal point of this election season is not because it polls well, it is not because people respond in a certain way in focus groups, it is because it is the issue that Americans have been pleading to be answered since 2008. While the Congress has tackled issues such as highly divisive healthcare reform that has so far failed to meet any of its promised outcomes, the issue of homosexuals serving in the military, and making sure that we are unable to drill oil off of our own coasts while ensuring that other countries can off of theirs. In fact, the most aggressive jobs plan that we have seen in the past four years, apart from a stimulus plan that failed to stimulate, involved funneling hundreds of billions of dollars to green energy companies owned by political allies that have already gone under. And it is in this national discussion on jobs that the issue of taxes will inevitably pop up.

The importance of tax reform is directly tied to the severity of this particular economic crisis. Our corporations, who do the hiring, are suffering under the highest tax in the industrialized world. A crippling 35% rate has pushed them off American shores and as a result, they have taken badly needed jobs with them. A reduction of that rate will go a long way to bringing those jobs back and keeping jobs here at home. But it will only go so far. These past four years will be long remembered by the business world. They have watched an entire political party castigate them as a greedy lot who deserve to be penalized even more than they already are merely for partaking in and succeeding in our capitalist system. A reduction of that corporate rate will have a direct positive impact but may not be enough to allay the fears felt by many that this antagonistic atmosphere could easily return. Our current political climate has become one of drastic swings toward one ideology and then back again. There is no security in cutting the rate against raising it again in the future. Of course it is easy to imagine, down the road, of an ever watchful group of voters who will keep guard of this newly created tax rate but that does not match historical reality. If we are to send a clear message to our job producers of both large corporations and small businesses, we must make it a big one. The FairTax eliminates the corporate tax. It does not just cut the rate for now; it eliminates the government’s ability to tax income directly and repeals the current tax outright. That is the kind of message that will bring jobs home, create them here at home, repatriate our money, and change the minds of other nation’s job creators. How many successful aeronautics companies in France would love to escape the upcoming possibility of a 75% tax rate and come to America which is offering an income tax rate of zero? We have the opportunity with the FairTax to not only shift the discussion of tax reform but to shift the paradigm of where we see ourselves within the world. There is one way to stop the bleeding of jobs overseas for sure, pass the FairTax.

The issue of jobs is also critically important because we are still a country that prides itself on its representation of the people. And there is no issue that is weighing heavier on the hearts of Americans right now. Much ballyhoo is made of the unemployment number every month. But we know that the number itself is only telling part of the story. The more depressing tale consists of the new lows our labor force participation is reaching on a regular basis. It is important to note that these people are not just out of work and are looking for jobs, for far too many Americans they have simply given up. Earlier this year Congress actually extended the time you could collect up to 99 weeks. Two years is 104 weeks. If the “land of opportunity” has to provide two years of unemployment then it is not working as it was formed. The fault does not rest in those that are utilizing it; the fault rests with those in leadership positions who continue to defer to an election instead of solving this problem. Tax reform is brought up as a major possible solution and there are two leading and very different ideas. One is to use the system we have now but change the rates up, and tax the rich more. This does not seem to create anything but government jobs, which fail to add as much to the economy as private sector jobs do. The other is a dramatic simplification of our current system. But it is nothing we have not seen before. In fact, the 1986 Tax Reform Act is very similar to this proposal. It is very important for a few reasons, it was possibly the last time that taxes played such a dominant role in the political discourse and it was a very large reform package. The 1986 law actually created only two tax rates, which were compiled together from the existing brackets. It is widely considered to be a success but it was as temporary as it was successful. The tax brackets could not stay simplified and in six years one was added by a member of the same party of the President that signed the original reform and an additional six years saw the inclusion of three more. Twenty years after sweeping and successful tax reform and we have returned complexity and morass back into the tax code against the will of the people along the way. Tax reform under such a complicated system will always be temporary and party designation is no guarantee of permanence. Luckily the FairTax answers these concerns simply and with a lethal efficiency. The era of class warfare tax arguments will be dead under the FairTax. Since the government no longer has the ability to peek into your pocket it can no longer use that information against you. Instead, it will have to focus on the larger problems that arise. The FairTax does not operate on a bracketed system that does nothing but separate the people and pit them against themselves. Any change made to the FairTax is a change made to everyone and everyone instantly. If Congress raises the tax they are also raising the tax on themselves, there are no shelters or loopholes to escape to. But more importantly, the FairTax helps the jobless of today’s society. Below is a graphed chart estimating the impact the FairTax will have on our future up to ten years down the line. If you can find a tax plan that can credibly claim similar benefits then by all means support it, and also pinch yourself, because you would be dreaming. The FairTax eliminates so much that is wrong with our current code to give us the tax code we deserve and need right now. Your Congressmen are still on recess, which means that they should be in your district. Call their office; get your friends to do the same. Find their town halls and ask them why they refuse to back the only tax proposal that is serious about tackling the key issue of our time. This is our time and the most exquisite of golden opportunities, do not waste it. We can wake up tomorrow with a malleable tax code that guarantees us only that it will change. Or we could wake up with the FairTax in a United States of America that respects its job producers, that recognizes the proper role of government, and reveres the individual citizen.

FairTax simulation model results
Cumulative growth over current system Year 1 Year 2 Year 3 Year 4 Year 5 Year 10
Gross domestic product 2.4% 5.2% 7.0% 8.2% 9.0% 11.3%
Employment 3.5% 5.7% 7.0% 7.7% 8.2% 9.0%
Domestic investment 33.0% 35.4% 36.9% 38.0% 38.8% 41.2%
Income from employment (wages) 27.4% 31.8% 34.5% 36.4% 37.7% 41.2%
Consumption 2.4% 4.1% 5.8% 7.1% 8.1% 11.7%
Disposable personal income (adjusted for changes in the price level) 1.7% 4.5% 6.4% 7.7% 8.7% 11.8%
Units scaled 2004 GDP = 1.00. Capital and labor set to equal constant shares of 0.3 and 0.7, respectively.
Source: Arduin, Laffer & Moore Econometrics, “A Macroeconomic Analysis of the FairTax Proposal”, February, 2006.
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A TALE OF TWO TAX CODES

There is a sharp contrast between the world of the current tax code and the one that the FairTax will bring about. While it is important to examine the ideas behind and the ideals that embody each plan we must never lose sight of what we are trying to change. The current tax code is one we have grown used to since its inception in 1913. Its growth and expansion seem logical to us only because that is all it has been doing the past 99 years. The scope of its reach is never questioned because it has existed for decades. We never question as to why there must be a gross and net pay. We do not waste time wondering why our taxes have to be reconciled. We have been taught that government is too large and unwieldy to keep its own books and that we must do our part to help it. So it comes as a shock to people that a system exists, on paper and in Congress, which will do away with these age old assumptions and practices. Generations have spent their lives knowing only a confiscatory tax system that perceives all income as property of the state first and allowed into the hands of citizens. But how do we know if it is time to change tradition? Can we say that the tax code is evil when 99 years’ worth of leaders have examined it and kept it? Or has it just now overstayed its welcome? That is a question for the American people to decide and to highlight the differences we should examine the impact on Americans brought about by both systems.

The first easily realized aspect of our current tax code is that it is complicated. It is this complexity that has a profound impact on the daily lives of Americans. You see, this complexity is more than a mere nuisance. A basic system of taxing income was set up in 400 pages in 1913. Through time that code has grown to cover over 70,000 pages in code, regulations and tax court rulings. Yes, the tax code has its own separate court system. The instruction booklet for the 1040 alone is 189 pages long. The current tax code itself runs an estimated 3.8 million words. It is more than four times longer than the entire works of Shakespeare. The Bard used 900,000 words to artfully cover the breadth and depth of human emotion and experience. A tax system that needs four times that amount has other objectives in mind than revenue. In fact our system has turned into a method for social engineering. Anyone with a rudimentary knowledge of current political discourse will realize that our tax code has been used with a political purpose to split our nation into bitterly divided classes based on income. Not only is the income division used to hamper political debate, it masks the real issue. Our tax code is the progenitor of some troubling discussions around this country. Some people discuss the very real marriage penalty and if they should forego what is an institution to human civilization older than the idea of democracy itself. The tax code actually discourages this act in a stunning show of social reorganization that only finds itself at the edge of the tax debate. Couples also discuss whether or not both should work so that they are not punished by entering a higher tax bracket. People comprehend that this system penalizes success in such a way that promotions and raises can lead to a negative outcome. That is the definition of a backwards system. The tax code even incentivizes what cars to buy which can change markets and alter business plans. The government is using this overly complicated tax code to circumnavigate the Constitution and enter into areas never intended by its framers. And what has this code wrought? Its extensive reach and complicated methods have not brought us enough revenue to close an ever widening deficit. In fact, with all of the news about the debt crisis in Greece and Spain it is overlooked that America has a debt that exceeds the Eurozone and U.K. combined. It is now time to ask what the purpose of this tax code is. It cannot even collect revenue that even the most uninitiated would think necessary. The IRS has in the not too distant past allowed corporate bribes to be tax deductible. Another more recent case involves a basketball player deducting his fines from the NBA from his taxes. Lamar Odom was allowed to deduct $12,000 in fines for poor conduct from his 2007 return. As a Mavericks fan I find this even more insufferable. The problems listed here do not even take into account: the regressive payroll tax, the double tax embedded in products by the corporate tax, the incentive for businesses to leave the country and take their jobs with them due to a hostile tax environment, the multiple tax of social security income, the overwhelming cost of time, money and manpower to comply with an unknowable tax code, and the inherent disrespect and malice the code has for our founding document. What redeeming quality exists within it? Why continue down a road away from prosperity? What reason could possibly exist to keep this disheveled mess that breeds dishonesty, discord, and disarray? Some would postulate that the reason we do not change is that as bad as the code is there is no alternative. Luckily they could not be more wrong.

The FairTax would mark the end of Tax Day. April 15, or in this case the 17, would be just another day on the calendar. No more rushing to the post office or postponing figuring your taxes. Filing an extension would be a thing of the past. You would no longer have to save receipts or papers for tax purposes or look at a deducted paycheck. Gross pay would become take home pay and investments could be retrieved without taxes removed. There would no longer be tax brackets and corporations could finally move back to America and bring their jobs with them. The obsession with income would be removed from Washington and allow them to focus on the real needs of our society, of which there are many. The FairTax is a consumption tax, only met when purchasing a new item at the final point of sale. Your income would be your own and you could spend it as you see fit. The tax cost added to the products are mostly offset with the elimination of the currently 35% corporate tax, not to mention the $148 billion in compliance costs for big businesses alone. What we would see in the world after FairTax is one stripped of much of its complexity. Without an overbearing burdensome list of ever-growing regulations the free market will finally be allowed to flex its muscles a little. This increased competition should drive down the price of products while maximizing their quality and availability. We have tried extensive government intrusion and have seen little to no benefit for hundreds of billions of dollars of “investment”. Whether that is measured in failed green companies or an ineffective stimulus, the proof lies with the citizen and not centralized authority. Giving more people back their own money is the avenue toward success. This is realized by both parties. The Republicans have a strong sense of supply-side economics usually embodied by the example of President Reagan. The Democrats also show signs of this in a payroll tax holiday and behind the explanations of statements regarding the economic need for more unemployment checks. The basic idea is a recognition that if the citizen obtained more of his own property and income the more prosperous society will be as a result.

It is not a difficult idea to understand and has enough proof behind it to warrant much more use. If that is the case then why is there such resistance to it? The tax code has been and will continue to be used as a system of control if kept in its current state. The only issues standing in our way are the politicians that are willingly using it toward this purpose. They exist in both parties and in many areas. The alternative reality of the FairTax is attainable if only we are to act. In an election year such as this one it is imperative we use our constitutionally given right to vote our conscience and use our voice. The possibility of the FairTax is directly tied to the energy of its grassroots efforts. It will require more than email evangelism. It will require more than arm chair politicking. This is more than an effort, it is a cause. One worthy of our best efforts and attention. The two scenarios described above are very real and possible. One we know all too well and one that we seek to attain. Will our generation break a cycle almost a century long? That is a question to be answered by the American people. They are responsible for some of the greatest triumphs of mankind. It is the ingenuity of American citizens that brought the world rushing into this new millennium at break neck speed, it revolutionized industries and created wholly new ones, it taught man to fly and planted his foot on the moon. We have proven to history that man is better off ruling himself than having someone rule over him.  Let us take up the banner of liberty again and show the world how an economy should truly be run. Without centralized authority but with control given to each individual citizen. Americans have given so much to the world, why doubt us now?

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FREE AT LAST?

The history of this nation and its present state answer some very old questions. What is the cost of liberty? How can freedom prosper under government regulation? Can a citizen alter or abolish the system of control placed over him? The successes and strides that America has made over the years seem to give us clues to the answers. However, there seems to be a turning point in our philosophy as a people in the past few years. The word cost is meaningless in our national discourse as it seems to be pointless when compared to results. Freedom is not sought by those in power who instead use governmental agencies to regulate equality of outcome regardless of input. Citizens do not seek to alter their government but want to profit from its excess. The idea of a permeating “entitlement mentality” has been met with skepticism however has proven to be a depressingly growing trend of late. 48.5% of American households now receive a type of government assistance. Almost as many as pay into the tax system. Those households receive more from the government than is sent in as income tax. A record number of Americans are admitted into the rolls of the Food Stamp program and their situation is celebrated. At the same time there is no indication from those in Washington that there is a fix to the problem. We are more than willing to extend the unemployment payouts yet unwilling to solve the underlying economic problems causing the unemployment. Our debt is ballooning much faster than it ever has and spending cuts are treated as an attack on U.S. citizens. A bipartisan budget presented by Representative Paul Ryan was passed by the House that balanced the budget by the year 2040. It will not even be debated by the Senate and it has been called by the President, “thinly veiled Social Darwinism”, among other things.

It is ignored however, that leaving our spending process uninterrupted will never balance the budget and will spend us into ever increasing debt that at some point will become unacceptable. The welfare spending has grown beyond our ability to pay and compromises the largest portion of our budget. In addition to growing government welfare we see the disastrous effects of a government that is too large to police or hold accountable. Senator Coburn of Oklahoma has made a practice of cataloging wasteful government expenditures, last month saw the arrests for the largest Medicare fraud in our history, and last week saw the maddening actions of the GSA come to light and the arrogance of its employees. These are a few examples of the rampant irresponsibility of those in Washington with our money. However, instead of a comprehensive review and elimination of government agencies, our government is about to hand the IRS the ability to stop tax delinquents from leaving the country. The government is not interested with responsible stewardship but the acquisition of power. Many of these issues would not be so frustrating if it were not for the fact that these actions are taken with our money.

Many of you are finishing or have finished your taxes for the year. This brief time spent recalculating the government’s work to see if they have removed enough from your paychecks these last twelve months could be given to more prosperous activities. The money spent double checking the government’s work should be devoted toward more successful endeavors. The outcome of such work will always be less than helpful. If you find yourself having to pay an additional amount it is an infuriating extra tax unsuspected and if you find there is no change the whole effort was in vain costing time and money to no end. Even if you receive money back it is only proof that your paycheck was plundered over the past year. In fact it is this confiscatory system of taxation that lies at the heart of the problem. The Tax Foundation released last week this year’s Tax Freedom Day. They measured the day at April 17. The first four months and seventeen days of the year are spent not in our own employ, not working for ourselves but to meet this ever growing government desire for money. Tax Freedom Day highlights the growing issue with this confiscatory system. Over one-third of our year is spent in the employ of the government, paying the increasing costs of a runaway budget with zero accountability. We have to do the work our government cannot to ensure we are paying “our fair share” yet the ones we pay refuse even the most basic accountability requirements. There is no budget, there is no accountability, and there is no desire to alter or renovate the system to repair it. We have heard of enterprises described as “too big to fail”, (the same overriding idea behind the Titanic) but what we are watching is an organization that is too cumbersome and unwieldy to succeed. We have reached the point where serious reform is a necessity. We realize that government cannot spend its way out of this mess; the effect is disastrous on our debt. We must grow our economy, and to do that we cannot have a system that confiscates the first three and a half months of our income per year.

Our founding proved that the cost of freedom is action and vigilance. It saw the removal of an oppressive and top-down system that led a flourishing nation to become a world power at break neck speed. It was accomplished through the actions of dedicated citizens willing to donate their time, their money, their careers, their efforts toward the goal of freedom. We have a long way to go to restore those lofty aspirations among our leaders. Some we must replace, others we must convince. All the while there is a growing belief that our society is too much changed. Some have given up hope in our future. Younger generations are given little to no confidence. Yet what can we expect without positive influence. It is true that there is substantial work to be done. Our first efforts are correctly directed at the removal of this disastrous income tax system and the implementation of the FairTax. It places the power directly into the hands of citizens and removes the opacity of a growing bureaucracy tainted with lobbyist influence. If there is hope for the future it is found within this movement. It is found in every volunteer and activist. It is found in any person willing to speak out against a top-down system of control. Tax relief and reform are hot-button issues receiving much more attention than is usually given to them. The iron is hot meaning our time to strike is now. There is no more perfect time to get involved. There are very few outcomes that one can predict with 100% accuracy. I can assure you that no change will come without effort by individuals. The conditions will not mold themselves to our preferences. This victory will have to be won from the ground. It requires your action. It requires your time. It requires your voice. John Adams said in 1818. “The Revolution was effected before the War commenced. The Revolution was in the minds and hearts of the people; a change in their religious sentiments of their duties and obligations. … This radical change in the principles, opinions, sentiments, and affections of the people, was the real American Revolution.” Do we not sense this now? The FairTax movement describes such a change. Let us act so that the revolution precedes the war and that the battle is won before it begins.

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LAND OF THE FREE OR HOME OF THE FLEECED?

“The more corrupt the republic, the more numerous the laws.” These wise words written by Tacitus, the Roman statesman and historian so long ago can be used today to aptly describe our tax code. We have covered the extent as to which our tax code has fallen away from its original constitutional purpose and has been used to inch us closer to tyranny. We have also discussed tax alternatives and have settled on one in particular… the FairTax. There is no reason to wait in taking action. We must act this year to move our idea into the national discourse because there is no reason not to and because it has become abundantly clear that our current system is unsustainable. Currently the complexity of the code has led to enough of a disconnect between the government and the people that they have felt comfortable spending a record $5 trillion without even passing a budget to keep themselves accountable. Instead of citizens collectively crying out in anger, we seem to be hamstringed by a constant class warfare that demands that “the rich” pay for government excesses even if they fly in the face of constitutionally limited government. There is a growing demand to fundamentally change our spending processes and I heartily agree with their goal. However, our tax code lends itself to these irresponsible spending binges by insulating the politicians within layers of protective bureaucracy and a thick veil of class war making it difficult to ascertain those responsible and even more difficult to actually gather the people to hold them accountable.

This insulation of Congress is one of the most damaging aspects to our tax code. It has been released recently that there is rampant insider trading taking place within the halls of Congress. The financial records of representatives show a 25% increase to Congressional worth in the worst two years of the recession, 2009-2011. This brings to mind a Latin phrase written by Sallust, a Roman historian, “Alieni appetens, sui profusus”,Greedy for the property of others, extravagant with his own.  And make no mistake; what we see from Congress is blatant, unabashed greed. Faced with yet another record deficit at least six members of Congress thought the best course of action was to attack the oil and gas companies and created  H.R. 3784, a windfall profits tax targeting a specific industry in an effort to cap their profits. This week the President articulated his support for the removal of $ 4 billion of subsidies aimed at the oil and gas industry. This has no connection to the amount of subsidies going to failing green companies doing nothing but losing jobs. We should be clear; the removal of the $ 4 billion of subsidies, just like the institution of a windfall profits tax, will crush Americans at the pump. If the cost of doing business goes up or the incentive to succeed disappears there is no market check on gas prices. It is simple to understand but leaves one crucial element out. An uncompromising lust for power. That is what Washington brings to the table. Those that will use the power of Congress to engineer society, those who would use the administrative oversight of the executive branch to reward environmental special interest groups leading up to an election year. The end of the production of the Volt is an textbook example to the lack of real market value in the policies of Washington. We need a tax policy that reverses government’s role in our marketplace. One that allows it to defend against violations instead of interfering. We need a tax policy that puts oversight control into the hands of the American people so that when the greedy start to ask for more we can emphatically answer, “No!” and remove them from office.

The tax code itself is a divisive tool used to pit the masses against each other to let the ruling class issue forth edicts that go unnoticed until too late. It has been recently reported yet cannot be overstated that only half of Americans pay into our income tax system. This is the effect, over time, of both parties using the current tax code as a reelection tool. Due to the rising tide of deductions of many sorts, fewer and fewer people are paying into the tax system, yet those same few are expected to foot the bill of the ever expanding “nanny state”. Abraham Lincoln summed up his fear of this situation thusly, “Property is desirable, and is a positive good in the world. Let not him who is houseless pull down the house of another, but let him work diligently and build one for himself, thus by example assuring that his own shall be safe from violence when built.” It can only be described as tragic that those words spoken today would be demonized as uncaring, elitist, and out of touch. Every election season we are promised new and trendy “rights”. Very few often stop to wonder whose money will be used to provide these niceties. What we are witnessing is nothing more than purchasing votes with taxpayer dollars. We are being bribed with our own money. The only sad part is how cheaply Americans can be bought nowadays. It was not long ago that a brave Revolutionary politician by the name of Joseph Reed said, “I am not worth purchasing, but such as I am, the King of Great Britain is not rich enough to do it.” The bravery of our founding patriots, those not even household names, has been traded for the tawdry sum that Americans sell themselves for today. This past week saw the most depressing illustration. A witness in a congressional hearing sold herself to the government for the mere price of monthly contraceptives. We are prostituting our liberty for so little value now that it is no wonder why Congress now brushes our wishes aside and, even in the historic wave election of 2010, still enjoyed an 85% reelection rate. Our problems do not reside in congress but with the weapons each congress uses to pilfer our liberty for mundane contentment. We are, as a result, robbed of the freedom to do great things. Crushed under the regulatory weight that deadens our uniquely American spirit. There are not words to describe what we have lost along the way in the name of “progress”.

I cannot express enough the brilliance of our founders in the field of political science. One such philosopher known to them all was John Locke. His influence can be found in many of our founding documents. He wrote about the importance of private property among other things. “Man… hath by nature a power… to preserve his property- that is, his life, liberty, and estate- against the injuries and attempts of other men.”- Second Treatise of Government (1690). He also wrote that men would not submit themselves under government without the protection of their property. The idea was not lost even as late at 1937, when Walter Lippman wrote this, “Private property was the original source of freedom. It is still its main bulwark.” Our current politicians would tell you that the source of freedom is your social security and the right to an abortion. Some others might tell you that it is your ability to worship as you see fit or the protection of a strong military that ensures freedom. None focus on the rights of property because our tax code is built upon the assumption that you have no such right. Again, to reiterate, the 16th Amendment allows for a tax upon income from whatever source derived. There is no nook or cranny the government cannot stick its hand into. There is no hiding from “whatever source derived”. It is an omnipresent hand in your wallet that has a seemingly infinite appetite. Alexander Hamilton wrote in Constitutionalist No. 6, “The genius of liberty reprobates everything arbitrary or discretionary in taxation.” Again we see how far we have fallen in terms of our rights and our liberties.

We are told of the importance of the redistributive aspect of our tax code. Those with much must provide for those with little. In my home state of Texas this applies to our schools in what is called a “Robin Hood” system. This system, like the fabled hero, steals money from school districts that are considered rich to give away to those that are designated poor. It is a microcosm of the foolish programs on a national scale. It is actually dressed up in the story of a fictional character to push the idea that the rich school districts deserve to have their money taken from them at force of law and given to others arbitrarily. The use of the Robin Hood moniker is telling in the thoughts of those that championed the system; they tacitly acknowledged that this was a form of theft. Calling it a Robin Hood system is as foolish as calling a new witness protection program the Roger Rabbit system. It has no merit whatsoever on the aspects of the realities of the law and is only used to obfuscate the truth. It did not and has not met the stated goals here in Texas except to incite class war whenever mentioned. The redistributive model of our tax code is obsolete. Systems like it have been tried and proven ineffective. But there is a solution. We have the ability to throw out the tax code entirely and start over with its polar opposite. It is called the FairTax.

The FairTax peels away that opaque barrier separating us from our elected representatives. By simplifying the tax code and rendering it as transparent as the very air you breathe it puts us in control of how government receives its money and thus how they spend it. It puts everyone in the tax rolls yet ensures we do not pay for necessities with the prebate. It restores our right to our own property by removing the grasp of the IRS. In fact, it dissolves the IRS completely. No longer will we have to answer to the government on what we purchase with our own earned funds, or where we desire to give charitably. It ends the class warfare component to our tax code allowing us to rally together to examine the workings of congress from the standpoint of the citizen.

We are instituting two new projects this week to help us pass such a tax reform. We acknowledge that the job will not be easy and that it must be completed at the ground level. But do not be discouraged, I am not asking you to trumpet it alone; I am asking you to join the team. We are creating a response team dedicated to answering FairTax critics and questions in real time. If a blog, news story, or radio personality misrepresents our idea or mistakes us for something we are not, we want to be able to respond. In addition to correcting mistaken or antagonistic views of the FairTax we want to make it known that Congressional candidates that support us will not do so alone. If you know of a candidate or are a candidate supporting the FairTax in your race please let me know at fairtax.jordan@gmail.com . We are collecting a database so that if attacked you will not have to suffer on your own, we have the answers ready and will be able to help you disseminate them quickly. We are also working on the FairTax answers to current crisis and political problems. That way we can take the FairTax on the offensive to prove it is the only viable solution to our tax problem.

We also recognize that the heart of this tax beast is the 16th Amendment itself. Its threat does not go unanswered. That is why I am starting the State Resolution Initiative. Rolling out this week will be the proposed state resolution provided to all 50 states so that we will have a willing nation ready to repeal it the moment the FairTax is passed. This site will keep track of the movement nationwide as we work in tandem to pass this resolution at the state level in all 50 states. I have spoken before of my desire to make 2012 a banner year for the FairTax. With your help that dream can become reality. We still live in a land that allows such opportunity. We still live in a land that affords us that freedom. We need eyes, ears, voices and feet around the country to help in these two endeavors. A task this monumental cannot be completed by one blogger alone. Our founders created a Continental Army and organized to defeat a reining empire. We have the ability to instantly communicate an equally transmittable idea. Join me and the other FairTax advocates around the country in fighting for our liberty and the country we were promised 236 short years ago. This is a fight we can win but more importantly, it is a fight we cannot afford to lose.

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