Distorted Stories – Where is the Truth about Fair Tax?

We are not trying to show any animosity to any party, race or group but I wanted to show the misinterpretation of an article we ran into on the internet.This is why it is so important to join with the grassroots to help Fair Tax become implemented. If we do not work to help implement Fair Tax we will have articles such as this one to defeat any hope for change.  I had to leave part of this article out for it pertains to issues I dare not copy to our website, the article was too graphic. If you want to check out this article go here.  In turn I read the this article that the author links to and claims as his/her source and I found this author failed to tell the whole story about the real issue why corporations and “S” corporations are not paying for their share of tax under the current system. We all know the true meaning of income taxes with corporations and capital gains taxes and how it works with the current tax system. In this authors first sentence why is he stopping the support of Fair Tax from reading their article?

North Georgia Democrats

A Forum for North Georgia Democrats, designed for people with their political center in their hearts.
Saturday, January 3, 2009
Old News for a New Year
If you’re a supporter of the ‘alleged’ FairTax, you have no need to continue reading.
Readers will remember my personal point of view on the very bogus and misnamed, “FairTax.” The “FairTax” is just another political tool of the GOP, an extension of the Southern Strategy started under Nixon. Although Nixon gets most of the credit for moving Southern voters away from the Democratic Party, Reagan worked the Republican method of carrying Southern states and conservative Democratic voters in the latter decades of the 20th century and first decade of the 21st century by exploiting racism among white voters as well as anyone white man in history.
The FairTax is like Reagan’s use of the Southern Strategy. “Through the use of language, we’ll use some words like fair and state’s rights to attract certain groups of voters. These voters already have an agenda like racism.The only problem will be avoiding the agendas .

The FairTax agendas? One agenda under the FairTax is removing all federal taxes from corporations. Corporations aren’t paying any federal taxes now. “Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.”

The FairTax has many false premises, among these that domestic corporations are unfairly taxed by the federal government.

The FairTax, like ‘state’s rights,’ is lip service to the dysfunctional. Who would be proud of being the member of a mob?
Most Corporations Pay No Income Tax

Actually T Coleman Andrew, in 1953 to 1955, Commissioner of IRS warned Americans of the current Income Taxation as did John F Kennedy, November 20, 1962, I did a research article and posted it on our Website Title: “History of the United States Income Tax”. Many Democrats as well as Republicans, along with Independents and Libertarians are working on the implementing the Fair Tax. There is no partisanship, as some may claim.
I checked out this author’s source and in its entirety here is what I found that this author linked to. Please note that the author only took part of story and distorted it. The article below also claims Lawmakers blame Loopholes in our current system. Fair Tax, if implemented, would stop these loopholes from occurring. We at Fair Tax understand corporations are leaving American shores and moving to other countries to avoid the IRS and the current Corporate or Capital Gains Tax. Just one of the many loopholes that is created by the IRS not Fair Tax. The other corporations “embed” Capital gains tax into the price of the product that we American consumers pay. These are know as “hidden” taxes that our corporates voided paying so therefore we pay the taxes for them. Please read on:

Most Corporations Pay No Income Tax

ABC News
Most Companies in US Avoid Federal Income Taxes

Report Says Most Corporations Pay No Federal Income Taxes; Lawmakers Blame Loopholes

By JENNIFER C. KERR Associated Press Writer
The Associated Press

WASHINGTON

Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress.

The study by the Government Accountability Office, expected to be released Tuesday, said about 68 percent of foreign companies doing business in the U.S. avoided corporate taxes over the same period.

Collectively, the companies reported trillions of dollars in sales, according to GAO’s estimate.

“It’s shameful that so many corporations make big profits and pay nothing to support our country,” said Sen. Byron Dorgan, D-N.D., who asked for the GAO study with Sen. Carl Levin, D-Mich.

An outside tax expert, Chris Edwards of the libertarian Cato Institute in Washington, said increasing numbers of limited liability corporations and so-called “S” corporations pay taxes under individual tax codes.

“Half of all business income in the United States now ends up going through the individual tax code,” Edwards said.

The GAO study did not investigate why corporations weren’t paying federal income taxes or corporate taxes and it did not identify any corporations by name. It said companies may escape paying such taxes due to operating losses or because of tax credits.

More than 38,000 foreign corporations had no tax liability in 2005 and 1.2 million U.S. companies paid no income tax, the GAO said. Combined, the companies had $2.5 trillion in sales. About 25 percent of the U.S. corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.

The GAO said it analyzed data from the Internal Revenue Service, examining samples of corporate returns for the years 1998 through 2005. For 2005, for example, it reviewed 110,003 tax returns from among more than 1.2 million corporations doing business in the U.S.

Dorgan and Levin have complained about companies abusing transfer prices — amounts charged on transactions between companies in a group, such as a parent and subsidiary. In some cases, multinational companies can manipulate transfer prices to shift income from higher to lower tax jurisdictions, cutting their tax liabilities. The GAO did not suggest which companies might be doing this.
“It’s time for the big corporations to pay their fair share,” Dorgan said.

————

On the Net:

Government Accountability Office: http://www.gao.gov

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Copyright © 2009 ABC News Internet Ventures

Draw your own conclusion but don’t let distorted stories like this one influence you without researching the real truth. This is where Karl Marx’s idea in his theory of communism started from – by deception, manipulation, propaganda and deceiving – much as the the government is doing today. The IRS, with their 67,000 pages of income tax codes do not even know their own codes to enforce them. Leaving much to be desired in the taxpayers and corporations to know if they are paying the right taxes. No wonder corporations are using “loopholes” in the current income tax system – leaving the American Taxpayer holding the bag. Read the “The FairTax Book” , “FairTax: The Truth” or even Governor Mike Huckabee’s book “Doing the Right Thing” to find real truth. website: Americans For Fair Taxation – FairTax.org

Charlie Prochaska
Volunteer Community Coordinator
FairTaxSOWEGA