News
Winning the FairTax War

Often, we lose sight of our objectives or how we intend to achieve them. As FairTax volunteers, our objective is very simple: to secure passage of H.R. 25. The question is: How Do We Accomplish Our Objective?

The FairTax battlefield is spread across many fronts: the Congressional districts in each state. In Georgia we have 13 fronts. Of those 13 we have won the battle in seven districts. Each of these districts is represented by a U.S. Congressman who supports passage of H.R. 25 as a co-sponsor. We do need to maintain a presence in each of these districts, just to let our representatives know that we need their continued support for H.R. 25, and to urge them to recruit additional legislators to co-sponsor H.R. 25. But we don’t need to continue to fight the battle on that front; we don’t need to keep pouring our resources into these areas. Our most effective tactic will be to apply our resources where they can do our movement the most good.

As we continue to win the battles on each front, we must advance to the next front. We can fight the battle in one district, successfully recruit and mobilize 100% of the residents of that district, and still not be able to secure passage of H.R. 25. Only when those supporters reach out to their neighboring districts, and to their neighboring states, will our movement achieve success. Only when we have enough legislators in congress to bring this bill to the floor and enough legislators to vote to pass the bill will our war be over.

Lloyd Newsome, Former Georgia State Director
Lobbying: The Cancer to Freedom
Although the FairTax may sound simple, the effects on our lives will be dramatic and positive. One of the benefits of the FairTax is that it will put us back in control of our government, not our government in control of us!

Our current income tax system is the perfect vehicle to allow our government to control every aspect of our lives. That system is designed to encourage bribery and political corruption; to aid and abet an underground, untaxed economy; and to satisfy the wishes of special interest groups, not the interests of mainstream America!

One of the greatest cancers ever to descend upon our country is the lobbying industry. These lobbyists serve as the conduit for special interest groups that strangle our free economy, deny our freedom, and undermine the vision of our founding fathers. And our current federal income tax system is the mechanism that makes all of this possible.

Just what is lobbying anyway? Let me try to explain it to you this way. You are driving down the highway, doing 75 mph in a 55 mph speed zone. You are clearly speeding. You look in your rearview mirror and see blue lights flashing. You pull over and a policeman approaches your car and asks for your driver’s license. When you hand him your license, you also hand him a $100 bill and say, “Don’t write me a ticket. You may write anyone else a ticket, just don’t write me a ticket.” We all recognize this as a bribe. And we all know that a bribe is a criminal offense.

Now, let’s move on to Washington, DC. A lobbyist approaches a congressman. The lobbyist hands the congressman $100,000 dollars and says, “Don’t tax my client’s income; you can tax anyone else’s income, just not my client’s income.”

How is lobbying different from bribery? IT ISN’T! You can call it what you want, but if it looks like a bribe, smells like a bribe, and tastes like a bribe, IT’S A BRIBE!

The vast majority of all lobbying activity is to secure an income tax deduction, exclusion, exemption, or credit for their client. If we eliminate taxes based on income, as our founding fathers envisioned and as the FairTax proposes to do, we will eliminate the need for lobbyists. Our congressmen will no longer be obligated to lobbyist and special interest groups. They can turn their attention to saving our great nation and serving the interests of their constituents again.

Do you ever wonder why it is so hard to unseat an incumbent? In 2009 there were over 13,000 lobbyists. They distributed 3.47 Billion dollars. If we divide that 3.47 Billion dollars by 535, the total members in both houses of congress, that comes to about 6.5 Million dollars per congressman. Those 6.5 Million dollars can go a long, long way toward financing a re-election campaign. There is almost no way any challenger can effectively compete in that environment. By eliminating lobbyist, we put all new candidates on a level financial playing field with our incumbents. Incumbent officials must return to their constituents to fund their campaigns. Serving constituent’s needs and resolving relevant issues becomes paramount for all elected officials. Eliminating lobbyist puts us one step closer to the congressional term limits we all want.

There is a bill before congress, in the House Ways and Means Committee, called HR 25. This bill is more widely known as the FairTax. HR 25 is the solution to this and many other problems our country faces today. But this bill will not be passed and this problem will not be solved without some action on your part. No matter how strongly you agree with the FairTax concept, nothing will ever happen until you decide to take some action.

You are at this site because you are concerned about the future of our great nation. You are here to take back the America that your elected representatives have stolen from you.

You are at this site because you are concerned about the future of our great nation. You are here to take back the America that your elected representatives have stolen from you.

Lloyd Newsome, Former Georgia State Director

Opposition to the FairTax
Opposition to the FairTax is bi-partisan in Washington. While most co-sponsors are Republican, those supporting the FairTax represent a minority of Republican Members. Eight years of majority rule by Republicans prior to 2009 did not see the FairTax enacted.

It's human, not ideological. The FairTax takes away from Congress power over the tax code. The ability to grant favors to supplicants-- paid lobbyists representing individuals and companies, other Members of Congress seeking breaks for favored constituents and contributors, themselves. It's a heady business holding so much power over the system that handles so much money.

And, this business of seeking favors is big business in Washington with more than a billion dollars a year spent lobbying for breaks in the tax code. Tax lobbyists are the most successful and powerful lobbyists in Washington. Staffers from the tax writing committees and ex-Members of Congress constantly replenish their ranks. Even staffers with 8-10 years of experience can command a six or even seven figure "signing bonus" when they join a "K St." tax lobby firm. Retiring or defeated Members of Congress can get a million dollars or more in signing bonuses and highly lucrative fees thereafter. DC pundits dine with them and Washington society celebrates their power and wealth.

With both power and profit motives so pronounced, entirely human officials and staffers are acting in self-interest against the proposal that ends this corruption. Scholars who have built careers around understanding the tax code and even tax reform groups whose membership is based upon railing against the income tax system similarly don't want their "rice bowls" broken. It is, quite simply, putting personal interests ahead of national interests.

Few members of the public would agree that this lucrative industry that has grown up around the tax code justifies the damage to our economy caused by the income tax system. It's a really attractive system for a very small population of both Republicans and Democrats in Washington, D.C. and a really bad deal for all the rest of us. Power over the tax system and the profits derived from those close to the inner workings of the Congressional Committees are sad examples of the real bi-partisan cooperation in Washington--and the distance between what is good for these few and what is good for the nation.

This is exactly why the "merits" of the FairTax fall on deaf ears in Washington and why we have to force such change by recruiting numbers large enough to threaten a more important self-interest of elected officials--their re-elections. It is high time we ripped away the false facade of "public service", supposed scholarly independence and tax reform hypocrisy that cloaks those protecting the income tax system and attacking the FairTax.

Lloyd Newsome, Former Georgia State Director

National Sales Tax Still Unpopular
At least this is what a recent Rasmussen report dated March 30, 2010 wants you to think. FairTax advocates still have an up-hill battle, and articles like this one only make our work that much harder.

A long time ago, when I was just getting my feet wet in the business world, a wise old man told me something that still stays with me today. He said, "Figures lie, and liars figure". And that lesson applies to this Rasmussen survey today.

After reading the report, I came away with the impression that the survey was only talking about a VAT, calling it a national sales tax.

We should not confuse these survey results with the results of surveys involving the FairTax as a national sales tax, which are, according to the report, actually still positive..."If the creation of a national sales tax eliminates the need for a federal income tax, support for the sales tax increases to 47%. Thirty percent (30%) are still opposed, and 23% are not sure." Granted, the VAT is a form of sales tax, but there is no correlation to how the VAT tax works and how the FairTax works as we all know.

Comparison of FairTax and Value-Added-Tax.PDF (40.6 KB)

What the current administration has been promoting is a VAT to pay for healthcare and the other debts they are building. But this administration is not in favor of eliminating income taxes at all. What they propose is both taxation methods in place at the same time. And isn't this one of the main fears of the American public when we talk to them about the FairTax? They are afraid that we will have both an income tax and a national sales tax at the same time. This would help explain the negative survey results.

And this is what this Rasmussen report is all about. Their survey didn’t reveal the results they sought, so they tried to manipulate the results by using the term “national sales tax” instead of VAT. Figures lie and liars figure.

What the report reveals is:

  • 51% of all voters oppose a VAT used to pay for health care for all Americans.
  • 60% of all voters oppose a VAT on top of our current income tax system as a way for our government to raise more money.

At least the American public is still savvy enough to know that they don’t want a VAT, but they do want to replace our current income tax system with a national consumption tax.

This is akin to organizations and agencies (i.e., The President’s Advisory Panel for Tax Reform) saying, “We have evaluated the FairTax and determined that the tax rate is too low to be revenue neutral”. But in reality they did not evaluate the FairTax. These agencies created, from their own imaginations, a “hybrid” tax system, evaluated that system, and reported that that tax system would require a rate higher than the FairTax rate of 23%.

And we all agree. The reduced tax base in the systems they devised would require a rate higher than 23%.

But the damage by this report has been done by further confusing the general public about a national sales tax, as have previous flawed studies by the President’s Advisory Panel for Tax Reform, the Institute on Taxation and Economic Policy, and Citizens for Tax Justice. Even though the article referenced the VAT in numerous places, it never associated the VAT with the survey results…just a national sales tax!

We spend far too much time having to defend the FairTax. It's time for us to go on the offense. Only that way can we make the FairTax a reality! Let's get to work on that "not sure 23%". If we only convince half of them to support the FairTax, we will have more than 58% of the voters behind our movement!

Lloyd Newsome, Former Georgia State Director

Leaders Should Move Beyond the “Achievable”
Knowing the economic growth that the FairTax will bring to America, I am always pleased when one of America’s major news outlets focuses on the bill, as happens frequently. A recent Wall Street Journal editorial warning politicians against supporting the FairTax was no exception. While I certainly disagree with the editorial’s conclusion, in the wake of Tuesday’s midterm election results, WSJ’s reasoning is tremendously instructive to the new Republican majority set to lead the House.

The editorial concludes, “Our advice to candidates would be to avoid the FAIR tax [sic] and focus on goals that are more achievable and less politically self-destructive.”

We have a President in the White House and a leader in the Senate whose policies have been so thoroughly rejected that the party in power lost more seats in the House on November 2 than have been lost in any election since Watergate, when Republicans suffered the same fate. Despite this rejection of the direction of their leadership, the President and the Senate leader seem committed to continuing their course.

The American people have a different plan. Having appeared at hundreds of events as a congressional candidate over the past seven months, never once has a voter asked me to “focus on the achievable”—those things that the President supports and will sign. Never once has a voter asked me to do what is politically prudent. Over and over and over again, voters have asked—nay, demanded—that I do what is right…that I be bold…that I speak the truth irrespective of the consequences. That is what the FairTax is all about.

Would it be “easier” or “safer” to simply talk about tax reform generally rather than write down all of the specifics in 130 page piece of legislation that is introduced in the House and Senate for all to read? Absolutely. It would be both easier and safer, but the American people deserve better, and the FairTax gives it to them.

Would it be “easier” or “safer” to simply make some minor changes to the current income tax code rather than trying to abolish and replace it? Absolutely. It would be both easier and safer, but the American people deserve better, and the FairTax gives it to them.

The payroll tax is the largest tax that 80% of Americans pay, but the FairTax is the only bill in Congress that is bold enough to take on that burden. American businesses face the highest corporate tax rates in the world and we are losing American jobs as a result, but the FairTax is the only bill in Congress bold enough to say that businesses don’t pay taxes—only consumers do—and so in the name of transparency we should abolish corporate tax rates and be honest about how those taxes affect consumers.

The WSJ recognizes the FairTax merits. “[A] consumption tax like the FAIR tax [sic] is preferable to an income tax,” it says. “If we were designing a tax code from scratch, the FAIR tax would be one consumption tax option worth debating,” it concludes.

But not now, it advises. It is too soon, it warns. It is too hard, it cautions. I don’t have all the answers but I have this one: not one voter in Georgia elected me to wait; not one voter in Georgia elected me to do what is easy. Shame on the WSJ for encouraging either.

With our economy in shambles, our debt growing by trillions annually, and our faith in government at an all time low, we must act. If it was easy, it would have been done already. It is hard. If it were politically prudent, it would have been done already. It requires risk.

As I look at new Congressman elected across this country on Tuesday I am filled with hope for our nation’s future. These are men and women who will not wait, who will not be cautious, and who will gladly sacrifice themselves for a brighter future for our nation. I am proud to share those convictions, and I am committed to doing what must be done.

The time is now.

Rob Woodall is the Congressman-elect for Georgia's 7th U.S. Congressional seat. Rob is the former Chief of Staff to retiring Congressman John Linder (R-GA-7) and is the co-author of the New York Times Bestseller, FairTax: the Truth. The FairTax is the most widely cosponsored fundamental tax reform bill in either the U.S. House or Senate.

FairTax 2010: A Perfect Storm Brews
Over the years, FairTax supporters scattered across Georgia have volunteered time, supplies and money toward securing passage of H.R. 25/S296. In recent months, GFFT has a new resolve to accomplish this. A newly elected Board of Directors and a comprehensive Strategic Plan are only the beginning. Combined with profound election results in November and a struggling economy, FairTax has never been better positioned to become a reality.

The new Board of Directors, a full complement of 12 leaders fully versed in FairTax legislation, are working with a passion that rivals Tea Party Patriots. Indeed, the core value of our single issue, a reduction of government intrusion into our daily lives and a restoration of fair and transparent representation, is shared among tea partiers. More activists are on deck, eager to fill Board positions when needed, and ready to head committees. In addition, an Advisory Council with experienced economists, legislators and political consultants are in the wings, providing expert advise as GFFT develops and implements its Strategic Plan.

GFFT's Strategic Plan is a comprehensive top-down organizational approach to supporting a grassroots bottom-up driven organization. This means that GFFT's corporate structure, its Board of Directors and its committees, is committed to supporting the heart and soul of this grassroots movement. District Directors and Community Coordinators will have the tools and support necessary to help them educate, recruit and mobilize FairTax supporters, activists and leaders. In addition, committee reports will inform the Board of Directors on progress, and help kick-start local groups where needed.

The election results of November kick it up a notch. If you were ever unsure of the viability of FairTax, you need only look at the incoming freshmen of our 112th U.S. Congress. By end of first quarter, FairTax will likely have about 100 co-sponsors in the House of Representatives, and another 10 co-sponsors in the Senate, putting more might than ever behind the FairTax. At the beginning of this term, FairTax will have gained more ground than at any ending term, pointing to the growing concensus that FairTax is the best option to tax reform! Any congressmen who may have been concerned with aligning themselves with "radicals" will need to rethink their positions on true tax reform.

Lastly, FairTax will transform our economy at a time when it couldn't be needed more. The resulting influx of jobs and investments will stop the steady decline of our dollar, the stagnant unemployment rate and our soaring debt. The sooner our congressmen grasp this, the sooner our economy will be on the road to recovery.

All these — new leadership, comprehensive planning, voter mobilization and a stalled economy — have created the perfect storm. And GFFT and its loyal supporters — YOU! — are in a position to harness the energy from this storm and get FairTax passed!

Mike Warlick, GFFT Chairman and State Director