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Viewpoints: Letters / Opinions

To better understand federal tax problems and solutions

By Paul Livingston


April 05, 2016
Tuesday AM

There is much confusion, misrepresentation and lack of understanding about the federal tax problems and solutions. The root cause of taxation problems is the 16th Amendment (enables direct taxation) passed in 1913. This Amendment gives government huge new taxing power for the first legal income tax, the IRS, payroll taxes and tax withholding. We lost Freedom, Liberty and Civil Rights. The 16th Amendment enables a graduated income tax, the second requirement for a communist state per the Communist Manifesto by Karl Mark.

Please consider the following problems.

  • The federal tax code is over 74,000 pages; too large to understand, administer, full of loop holes, encourages bad practices and debt.
  • IRS investigation requires proving innocence without judge or jury, thus a loss of Civil Rights.
  • Direct taxation discourages production (income, savings and investment), but production creates a vibrant economy, more jobs, higher standard of living and larger tax base.
  • Direct taxation reduces Freedom, Liberty and Civil Rights.
  • We want jobs, but have a regressive 15.3% tax on jobs shared 50/50 by the employee and the employer.
  • All taxes, fees, etc. to businesses are costs that increase prices and are passed onto the next buyer until paid by the final consumer. Thus nobody is tax free, and pays over $0.28 per dollar in embedded business taxes as a hidden regressive sales tax.
  • The U.S.A. has the highest business taxes in the world thus raising the prices for U.S.A. goods, but imported goods do not carry that high tax burden.
  • Federal taxes are based on jobs, companies and capital; thus driving them out of our economy and discouraging entry.
  • Tax withholding reduces take home pay.
    “United we stand, divided we fall” and our tax code divides us into classes.
  • We spend some $431 billion per year to just comply with the tax code.
  • The untaxed “underground economy” is over $2 trillion.
  • Tax evasion is at $600 billion and growing.
  • The federal tax code is the Washington commodity bought and sold by the lobbyist, special interests and politician. Hence the growth of “Crony capitalism”.

Flat taxes and rate changes are no answer. They still tax production and jobs, need the IRS, annual tax filing and withholding. We had flat rates before and politicians agree the tax system will quickly revert back to old ways. The value added tax (VAT) is a new tax, called a consumption tax, but collected by businesses and opens a new tax play ground for the politicians, lobbyists and special interests. Both a flat tax and VAT need the 16th Amendment and don’t address the real problems.

The FAIRtax ® bill HR25/155 is America’s big solution to all the above problems with “replace and repeal tax reform”. In Congress 81 (74 House, 7 Senate) support FAIRtax to replace all federal business and personal income, gift, capital gains, estate, alternative minimum, Social Security, Medicare and self-employment taxes with one national progressive sales/consumption tax collected by the 50 States. The two part FAIRtax is easy to understand, no loopholes, one tax rate paid as you buy. It collects the same tax total with a progressive sales/consumption tax on new goods and services of $0.23 per dollar. The FAIRtax has one tax break, called a Prebate, a monthly tax rebate based on family size to help most the impoverished and lower income. The Prebate makes the FAIRtax a progressive tax plan. The FAIRtax promotes long term growth for jobs and the economy and better funds Medicare and Social Security. The 16th Amendment would be repealed with companion legislation.

Learn more, join the cause and contribute at and

Paul Livingston
FAIRtax volunteer
Florida FAIRtax Educational Association board member
Jacksonville, Florida

Received March 31, 2016 - Published April 05, 2016


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