Monday, April 22, 2013


Fairtax basic fraud - - if they only taxed personal retail sales, they would have to charge 89% tax rate to be "revenue neutral"

And yes they know that.  In a clever way, it's in their own fine print.  They made sure you didn't know,  because they only mentioned it a few words here, a few words there. It is impossible -- not just difficult -- to learn what Fairtax actually taxes unless you look very closely into all their fine print, all their footnotes, and all their tax revenue tables.

Meanwhile, Fairtax story, the narrative, the slogans are profoundly misleading -- meaning, false. 


# 1



Most Fairtax suckers are so stupid -- because Fairtax hustle made them stupid, that they don't notice the massive other taxes.  The impossible taxes.

Instead, Fairtax hustlers had us (me too) thinking "Yeah, tax consumption, what a great idea!.

Yet we had no idea what Fairtax hustlers were using as "consumption"  in the fine print.   

What do they mean by "consumption"?

Retail sales, right?

Uh, not even close. But you have to read the fine print -- not the slogans-- to grasp that.


By their fine print and tax revenue documents, if you look very closely,  Houston Texas city council would owe over 80 million dollars as a tax on wage and pension "expenditures". 

Eighty million dollar tax, just on the wages and pensions they pay out.  No, the cops and firemen, etc, don't pay that.  The city council would have to pay that.

And that's just the start.

Another 80 million or so Houston city council would owe for capital expenditures -- yes, if Houston built a new sewer treatment plant for 50 million, Houston would have to "remit" as Fairtax says, about 12 million in federal taxes FIRST.  

In advance, Fairtax says "prepay",  this tax on "investments".

Not just Houston, but Dallas, Chicago, Keokuk Iowa, Sarasota Florida, Poughkeepsie New York -- all cities.

Massive -- truly massive -- taxes.


Not only massive -- not only goofy -- all states have to pay likewise.  The California state assembly would have to pay (according to Fairtax fine print) over 20 billion in Fairtax.

Let me repeat that -- 20 billion.

And no one told them. Just like no one told Houston. Fairtax only has these massive taxes in a few words, here and there, that you must piece together  like a puzzle.

Think Houston will send in 80 million just as a tax on wages and pensions?

Think California state assembly will send in 20 billion?

How stupid do you have to be to think any city will pay this -- especially since no one told them.  Fairtax said just the opposite in their slogans, their videos and there speeches.


Do you even know what the hell NIPA is?   Probably not.  Most people would guess it's an auto-parts store. 

But Fairtax hustlers (we don't want to call them lying bastards, because they did at least write it down someplace, in a very tricky way) did tell their suckers, if their suckers would read all the documents very very VERY closely.


So they did -- yes, they did -- tell you.

See those words?  They are from this Fairtax document --


Here is a link to that document...

 But you better read closely, and pay no attention whatsoever to the great slogans.

If you read their clever documents AFTER you are hooked on the slogans, you probably won't have a clue, since you already assume

1) It's a simple retail sales tax

2) They have 22 million in research.

Fairtax, as you will see, does have a retail sales tax, but the massive other taxes -  in addition to, and on top of  the retail sales tax, are in the fine print only.

Over 2 trillion dollars of "other taxes"   -- on top of, in addition to their retail sales tax.

It's there, a word or two here, a word or two there, an equation, a footnote, an "assumption". 

But it's there. Clever as hell.


For example, Fairtax base means, by definition, what they tax.  So when you read what is in their "tax base"  that means that's what they tax.

So in that document you will see various clever slights of hand, but when you unravel them, they do show you in a fraudulent (misleading) way, that they have these massive other taxes.  

They make it SEEM otherwise, even in that document,  with the wordage "Taxing Sales" in the name.  So you assume, oh they tax sales. Of course. 

 But when you get into it, actually read it closely most of the tax base has nothing, zero, to do with "sales."





For example, is the wage and pension your city pays a fireman a "sale"?  All wages and pension paid to all government employees (including military!) is in the "tax base"   That means their math is based on collecting a 23% tax on all such "expenditures."

Certain wages. Oh, certain wages!  Can't be a big deal, right?

But wait till you learn what wages mean, and who has to pay -- no not the employee.  The employer has to pay.

The city

The county.

The state.

The military.

23% tax.

They don't show this anywhere clearly, even in the fine print they are vague and misleading.  But at least it's there. 

You must put it together, and ignore the nonsense about simple retail sales tax to replace all other taxes. 



Remember they never say anything directly and clearly -- 

Here is a footnote about city county and states must (or they assume it will happen)  raise their tax rates to pay for these massive taxes city county and states have to pay on wages, operational expenditures -- all expenditures are taxed except education. Even building highways, even the US military!

That's how goofy their math is, when you study it closely.

Do you see that footnote?  Better look..... they assume

Adopts?   They "adopt" a  prepay approach?

So if you found that document.... 

and if you found that footnote

and if you detangled the absurdity

you would know how goofy this is.  They don't even hint to any city county or state that these massive taxes exist. Not even a HINT.

In fact Fairtax went to great expense (Beacon Hill was paid) and trouble to make this confusing to stupid people and suckers.

City county and states -- so says Fairtax "research"  is what they "assume"  will happen.  

They also "assume"  all city county and states are going to pay these massive taxes for their MATH. 

Remember this -- for Fairtax to get  most of the revenue, all city county and states would have to pay massive taxes -- the raising their tax rates.

They told you, right?   They assume -- they adopt -- a prepay approach.   And they are talking about these taxes on city county and states.   


In advance.

Prepay or not is not the point.  That they have these goofy massive taxes quite opposite of the slogans is the point.

And that these other taxes are impossible nonsense is the point.

Now you see why heir use of the term "all consumption expenditures"  without exception was so important.

Is it their fault you didn't find every document put out by Beacon Hill and read it carefully?

They knew not one in 10,000 would bother.  But just in case anyone bothered to read all that "research"  even there they made it misleading.

Anything anyone consumes,  any government consumes or expends (other than education expenditures).

Anything a city county or state consumes or expends.  Including (see the fine print) wages, pensions and operational expenditures.

All  taxed.




Retail purchases taxed 23% would not bring in 1/3 enough to replace all other fed taxes.

So if they ONLY taxes retail sales as they hope suckers believe,  the tax rate would have to be drastically higher, almost 400% higher than they claim.

But their fine print does NOT claim to only tax retail sales!

Read it closely.  That is the impression guys like Huckabee, Boortz, and other talking heads give.  But that is not the tax.

Any and all cancer victims- - to make that math add up -- would owe and have to somehow pay 30,000 dollars if that is 23% of what a breast cancer victim consumes.

Remember?  It's CONSUMPTION- - not spending, not retail purchases. CONSUMPTION.  Very clever, and it's there in the fine print.

See the "consumption"  they tax?

That's not just retail sales.   


   When Fairtax tells their sucker they tax "consumption"   they know that in their own definitions, and in their own math,  are massive taxes on capital expenditures, on all city county and state expenditures, all military expenditures.

Go on, look anywhere -- anywhere at all -- in Fairtax fine print for a list of retail purchases.  

How much to do the collect in retail sales tax?

Should be easy to find in their documents. Very simple.

You won't find it listed. They did not put that in, for a reason.  A retail sales tax would bring in only about 1.4 - 2.0 trillion.

They claim to bring in more like 4 trillion.

So where the hello are the other 2 trillion in tax revenue?

From the other taxes -- not the retail sales taxes.



If they showed any clear entry of what they would collect for 23% sales tax --  they would have to explain why the hell that only brought in about 1/3 of what they claim Fairtax will collect.

But if you look very carefully, you can find the other taxes, in a word here, a definition there -- a math equation over yonder.  So it's there -- deliberately confusing and nearly impossible to grasp what they actually tax unless you very carefully read every single word -- and ignore the slogans.


Yes, all military expenditures, including wages, pensions, defense spending is part of the "consumption"  expenditures.

All consumption expenditures are taxed (except education)

Boys and girls, a tax on retail sales t sound smart and fun and simple right?  

Yes, boys and girls it sounds fun.

One tiny problem.  Those retail sales taxes are just the start, a small part, of what Fairtax taxes. 




Fairtax sounds great -- the slogans, I mean.  All those slogans sound great. Simple.  Transparent. Researched. 

This "very very simple"  retail sales tax fixes more problems by accident than anything Congress has ever done on purpose!

And with 22 million in research -- NO WAY  it could be a goofy fraud by lying bastards, right?

Those "researchers"  would spot the fraud in the first hour.  

Not just ANY researchers, right?  But like all things Fairtax fraud -- they had the best researchers, 80 "top" researchers, including Harvard liberal Dale Jorgenson. 

Right?  They had researchers, right?  They had 22MM in research, right?  Turns out, they have no actual research-- and sure as hell not 22 million dollars of research.

Why no research?   Because no one paid out 22 million for it, and they have nothing -- zilch -- about a simple personal sales tax to replace all other fed taxes.

We show you what they have.

IF they ONLY taxed retail sales, the tax rate would need to be 89%.   Fairtax hustlers worked very hard (we show you) to hide these massive other taxes.


Oh -- really? 

Yes Fairtax has a retail sales tax.  But that is only s small part of their taxes.  And they did everything humanly possible to keep you from knowing about those massive good other taxes.

Those "other taxes"  are most of Fairtax. 

1) Fairtax hustlers  sold Fairtax  as a "very very simple"  personal retail sales tax, to replace all other fed taxes"

2) Fairtax hustlers claimed 22 million in research.


Their "research"  is no more research than my dog is -- and I don't have a dog.  Still, when you get a smart person to read the their documents, they can be hilarious.   Lucky for them (and rightly so) it's legal in politics to call your own fraud "research". 

By research, sincere people mean this ..

Given this definition, there is no research  Not a thousand dollars. Not ten dollars. And sure as hell not 22 million dollars of anything.

When you dig into this math -- do you know what their
research" says?

It says they have massive goofy other taxes, like taxes on all Medicare patients, huge taxes.

Like taxes on US military -- as if the military can pay massive taxes.

It says they tax all military wages, pensions and benefits -- no the soldiers don't pay, the federal government pays it.

It's not ONLY hear in the math, cleverly deceptive, but this is one place you can look easily enough and see what's there.

It says they tax all city, all county, all state expenditures other than education.  

So here is their tax base -- tax base = what they tax.

This is information taken from sworn testimony to House Ways and Means committee by a critic of Fairtax.

It's important to notice -- Fairtax officials never pretented anything like this.   They simply include these taxes in a very clever way, never making them clear whatsoever.  In fact, they give the opposite impression overall.

All city county and state wage expenditures -- taxed.  No, the person getting the wage does not pay the tax -- the state city our county pays. So if your city has 10 million in wages and pensions going out, your city (really) would be taxed 23% of that.

For Chicago alone that would be over 80 million in taxes owed to the federal government because their wages and pension expenditures are vastly over 400 million.

Not just Chicago -- Cook County, too.  But these taxes ARE in the fine print, if you detangle the fine print, if you check the math like above.

All pension expenditures -- taxed same way -- the state city or county must pay.

All operational expenditures -- taxed.

All capital expenditures -- taxed.

All prison, courts, police and fire protection expenditures -- taxed.

Dallas Texas, for example, would owe over 100 million dollars in "Fairtaxes".

How the hell is any of that "a personal retail sales tax"?

That's why we say -- correctly -- that these other taxes are impossible to collect.

Chicago is NOT going to send in a check for 80 million dollars for wage expenditure tax.

Dallas is NOT going to send in a check of over 100 million,

Cook County,  etc etc.  No one is going to send in these massive goofy taxes because no one even told them about it.  Do you think Fairtax is going to get passed, and without ever telling anyone candidly anything about this -- all cities, all counties, all states  all military, etc, will send in massive amounts of money?

One more time -- why do Fairtax hustlers have these massive other taxes?   After all, they know they can't collect them.   So why are they in the fine print?

To make the math add up.

To make it seem like it could be 23%.

It can't be 23% unless they collect all these huge impossible hidden taxes.   They hid them to make it seem otherwise.



 There is no research into this "very simple" retail sales tax to replace all other fed taxes.

Why? hiding massive impossible other taxes in the fine print (yes impossible taxes) is the opposite of research.

Hiding the massive goofy impossible other tax is the fraud -- and they do that in the research.  It's there, we show you, if you look closely.

Remember that.  Yet they sold this as a "very very simple" retail sales tax". Remember even when we offered 50,000 dollars for one page of research into this very simple personal retail sales tax to replace all other fed taxes, they could not show one page.

Not one page.


You will "see the tax on your receipt".  

Utter nonsense, most of Fairtax has nothing to do with retail sales.



1) Fairtax hustlers never -- ever --ever -- ever told you what they actually tax in a candid way.  

2) The biggest part of Fairtax has nothing -- nothing -- nothing -- to do with personal or retail sales taxes.

5) Fairtax has massive goofy and impossible other taxes -- they needed these massive goofy other taxes in the fine print to make their math add up.


Will Medicare patients actually pay, say, 46,000 in federal taxes just because they "consumed" surgery and chemo?

Of course not.  

Nor do Fairtax lying ***** think they will pay. 

But they had to make their math add up.

So,  that kind of absurdity is in Fairtax fine print -- and in their math tables. 

There are no exceptions for the poor or for health care.

Yes, they could put such exceptions in -- but if they did exempt health care, for example, that 23% tax has to go to about 38 or 40%.

So they dared not exempt health care, as  taxable, to the poor or rich. Even stupid people know that a 40% sales tax is stupid, and they could not sell their fraud if they admitted that.


Yes, they have a retail sales tax -- but that is only a small part of Fairtax taxes.

Yes Fairtax sounds great, and there is no crime in making your fraud sound great.  Politics is full of slogans, and only stupid people belief slogans.

But get all the words.

All. The. Words.

Like these seemingly innocuous words -- a slight thing, right?


This is the information supplied to House Ways and Means Committee by someone who actually read the fine print.   We show you -- the massive taxes on city governments.

The massive taxes on county governments.

The massive taxes on state governments.

These taxes are there -- a few words here, and there.   That is how their math seems to add up, these massive other taxes.

So why the hell didn't they tell us what they actually tax -- meaning the massive other taxes, much much larger than the personal retail sales tax?

They didn't tell you because they did not want you to know.

Yes Fairtax sounds great, and there is no crime in making your fraud sound great.  Politics is full of slogans, and only stupid people belief slogans.

But get all the words.

All. The. Words.

Like these seemingly innocuous words -- a slight thing, right?

Yet here is their own document.  Did you find it?  Did you read it closely?  Did you grasp what it means?

Your city, your state, your county are supposed to RAISE their tax rates.   

By how much are your city county and states supposed to raise taxes?

By what whatever it takes to pay those massive taxes.  Vague bullshit, put there in a way to fool the stupid, not to inform the stupid.  But there it is. So they did tell you if you found that document.

If you found that document and were not already made so stupid by their hustle that you even noticed it. 

Why did Mike Pence back off from Fairtax -- he was a sponsor for it, in the House and Senate.  It was the answer to everything -- remember, he did not only support it, he SPONSORED it.

Pence went around "teaching" it.

Why did he stop mentioning it? 

Why did Mike Huckabee back off From Fairtax -- he ran for President on Fairtax, it was his big "economic" plan. 

Why did Neal Boortz -- author of two Fairtax books, who was actually paid (yes, he was paid) to push Fairtax, largely back off? 

Why did FOX NEWS back off?   Hannity Cavuto and others pushed Fairtax regularly for a about a year.


What happened to those "thousands"  of Fairtax volunteers, and supposedly big groups in every state?

What happened to those 80 "leading economist"  who did 22 million dollars of "research" that proved all these things about Fairtax?

No tax bill ever had 100 sponsors.  

No tax bill ever had 22 million in research.

 What happened to those sponsors?

What happened to that "research". 

What the hell happened? 



Big clue that Fairtax is a goofy fraud -- they claimed 22 million in research by "80 top economist".  

Strange then, they can't show any research -- we show you what they have,  it looks fancy to stupid people, but when you actually read it, it's goofy.  

It's almost comic.

Those "documents" are no more research than a McDonalds paper sack is -- and worse,  those papers they claim is research, are not even about a retail sales tax to replace all other fed tax.

As we show, in their OWN fine print, are massive other taxes.   You have to pay the retail sales tax -- not a big problem.

But you have to pay the massive OTHER taxes  too -- and that's a huge problem, because those other taxes are impossible nonsense. One quick example -- a breast cancer victim, all breast cancer victims, regardless of age, income, etc, would owe 46,000 dollars in federal taxes just because CONSUMED 200,000 dollars in goods and services.

All "consumption"  is taxed 23%.  Including health care consumption.   Fairtax math is based on actually collecting these taxes.  

And that's in the fine print, in clever way. 

In fact, the goofy absurd taxes on all city county and states, on their wage, pension and capital expenditures, has to be paid IN ADVANCE.

Very clevery.  "We adopt a prepayment approach".

99.999% of Fairtax suckers have no clue there is even a 23% tax on all wage pension capital investment, operational expenditures.  Yes there is.

And it's payable in advance.

But they told you -- if you looked very carefully.

Let me repeat this -- according to Fairtax fine print -- your city, your county and your state are supposed to drastically raise their tax rates -- taxes you must pay 

Fairtax hustlers had no choice.  They had to lie this way.


Do you really think Dallas Texas city council is going to send in over 100 million dollars because these ***** ******** wrote these words ?

Fairtax math depends on all these taxes coming in - all money from all cities, all money from all cancer victims, etc.

And they know damn good and well these taxes will not be paid. Why?  Because they never TOLD anyone about them.

They made damn sure it was nearly impossible for a Fairtax sucker to spot them,  and they told Fairtax suckers what sounded great.


Neal Boortz is the guy who started the goofy fraudulent claim of 22 million dollars of research. Or at least, we heard it from him first. Who would lie about THAT?

If Neal  did not start that fraud, he sure repeated it so much he might have as well started it

As you will see, there is no research, at all, about this "simple" retail sales tax to replace all other fed taxes.   

FOX News people -- Sean Hannity, Neal Cavuto, and others praised Fairtax as often as they could.  Hannity even gave speeches for them at "rallies."  

Hannity, Huckabee, and Boortz push Fairtax fraud at a "rally."  Naturally they opened with a prayer. 

Dozens of others  in Congress,  Senators, Representatives, the Cato Institute,  either sponsored or boasted of Fairtax and praised it effusively, acting as if they knew it very well indeed.

I doubt any of them bothered to read it, much less read it closely. 

But those slogans -- wow -- great, no?

Yes, frauds have great sounding slogans. 


All  that is gone.   Why?     We show you why -- but the short answer is this -- the fraud was exposed. Yes, fraud.  

That 23% tax?  With all prices falling 22%?

Utter nonsense,  but they sold it with utter self confidence.  ANd all that research! 

The documents they tell people is "research" is where the massive other taxes are.    The retail sales tax is only a small part -- we will repeat that over and over.  Most people don't grasp it,  because the slogan of "23% retail sales tax" is firmly stuck in their heads.

But the retail sales tax would need to be 89% of they only taxed retail sales.   So they cleverly inserted massive other taxes -- as goofy as goofy gets.

For example, California state legislature would owe over 20 billion (that's right billion) in taxes on wages, pensions, capital expenditures, highway construction, court and prison costs, etc etc,

That's not retail sales -- but every state would be taxed like that.

Every city.

Every county.

So calling it "retail sales tax"  to replace all other taxes was always a fraud.  It was never true. 

But even FOX NEWS folks, even hate radio folks, are not so stupid to believe an 89% retail sales tax is even sane.   So Fairtax hustlers made sure their suckers -- and FOX NEWS folks, and hate radio folks, thought it was a very simple retail sales tax.

In short, Fairtax hustlers knew FOX NEWS and hate radio folks were stupid and would believe anything told them in self confident way.  And they were right. 

But no way even FOX NEWS folks and hate radio folks would buy into an 89% sales tax.   So Fairtax dared not tell them -- a retail sales tax would need to be 89% if retail sales tax was the only tax.





Yet Fairtax was unique -- it was sold by organized effort, apparently to raise money.   As Bruce Bartlett showed, it was Scientologist who came to him and wanted him to push Fairtax.    So it might have been a fund raising fraud -- to get money from stupid people.

If so, politicians like Huckabee and Herman Cain found it, and it sounded great to them.  I doubt they knew it was a goofy fraud -- at first.    But why not push it now, if it was the best possible thing ever, with 22 million in research, that would solve all economic and "illegal alien"  problems as they said?

Why suddenly not push it -- they were gang busters on it before.


Did they finally read the fine print?  I doubt it.  

But they probably heard enough to know it's goofy.

When you see what Fairtax  actually taxes in the fine print, it's beyond naive to say it's not a fraud.

They hid massive goofy and impossible other taxes -- far larger than the retail sales tax -- in the fine print.

It was exposed very quickly by President Bush Tax Advisory Panel in 2005, but in polite terms, at least in public they were polite. In private, William Gale, PhD Stanford, who headed President Bush Tax Advisory panel said of Fairtax "they lie a lot". 

And that's true, as you will see.

Also, Bruce Bartlett, a economic advisor to President Reagan, easily spotted the fraud (all he had to do was read the fine print very closely)  by noting the exact thing President Bush Tax Panel did -- the massive goofy impossible other taxes in the fine print.

President Bush Tax Panel showed that, without these massive goofy other taxes in the fine print, on top of, the personal retail sales tax,  Fairtax would need to be 89%, not 23.

Bartlett said the same thing -- Fairtax without these massive goofy other taxes hidden in the fine print would need to be 90% or more.  Because Fairtax hustle explicitly states all city and states are to use that same tax (with all the goofy hidden taxes)  that would mean absurdly high taxes, when federal, state, and city taxes are doing the "fairtax fraud".   The tax rate, noted Bartlett, with city and state sales tax, could be 100% or more.

Fairtax was not about to make it clear that a RETAIL sales tax alone would need to be 89% or even 100% when city and state sales taxes are included.   So they did what they had to -- to make it SEEM like 23%.

They included those massive other goofy taxes in their fine print, and hoped you did not notice.

Huckabee, Pence, Boortz,  FOX News,  etc etc etc probably know this by now, and may have known at the time.   That may be the biggest reason you hear very little about Fairtax now.

In fact, online Fairtax has, as best as we can tell, three or four people who push it on twitter or facebook, yet there are dozens of fake accounts (bots) that seem active.  Those bots might be the doings of one or two people.

Essentially Fairtax fraud is now an orphan.


A very very simple retail sales tax -- a personal retail sales tax, they told us for years, in 1000 different ways.  

I fell for it -- and why not.  Simple, transparent,  all researched. Who would lie about that!

All researched -- 22 million in research.  By Harvard professors no less!  

Fairtax put out a list of 80 "world class" economist who created it, right?

That's what they made it seem. 

And specifics were amazing --- by the research!

  Prices all drop 22%,  so a 23% tax on your lunch or retail purchases won't even matter.  Thirty two percent increase in US business in one year. Per the "research".   Our paychecks go up 50% on average, Neal Boortz told us in his Fairtax Book.

Per the "research". 

Legal residents all get a check every month to pay taxes on "necessities"  so no one has to worry.   


What Fairtax lying bastards -- yes they are lying bastards or fools -- forgot to tell us.

The NIPA Taxes.  Fairtax has a retail sales tax.  But we Fairtax suckers were not told one damn word in any candid way about what they actually tax for most of the money.

Yes -- we have to pay massive -- massive- - massive- - did I mention massive other taxes TOO.

On top of, in addition to, the retail sales tax.

Fairtax lying bastards -- or fools if they were not in on the fraud -- never told us about the NIPA taxes.  A cancer victim, for example, would have to pay 20 or 30 thousand more dollars in fed taxes, just because of these NIPA taxes.

Your city -- if you live in Dallas -- will have to pay over 100 million in NIPA taxes.

Then Dallas (and all cities) are supposed to "raise their tax rates" to pay that 100 million. See more below.

Neal Boortz -- author of the Fairtax -- forgot to tell his suckers that,  The State of Florida would owe over 20 billion -- billion -- in NIPA taxes, as you will see below.

According to Fairtax own fine print, Florida state government is supposed to pay that -- then RAISE THEIR TAX rates by over 20 billion.

Every state. Every city. Every county. Huge -- huge -- taxes, they have to "remit" huge taxes on their expenditures.  Pension expenditures -- taxed. Capital expenditures -- taxed. Operational expenditures -- taxed.

They they are all - all  -- supposed to raise their tax rates.

Yeah, I know,  Boortz and the other fools or lying bastards never told you.  But if you read their fine print closely, very very closely, it's there.



Fair Tax is goofy  -- it's absurd.  And they know it.  The hustlers know it.  They deliberately didn't tell you about it candidly. 

 The massive taxes on all city county and states is just one absuridity.

Here is another.  Fairtax just eliminates Social Security and Medicare taxes.

There is under fairtax no funding for either program.

Not a dime going to it. Not a penny.  

Why?   Why claim not to have Soc Sec taxes and medicare taxes?   Because it sounds so good to have ONLY that 23% "sales" tax.  Even Fairtax suckers are not so stupid to fall for some nonsense like this, if  they sold it as 23% tax AND Soc security taxes.

So they just pretended they will get rid of those, too.

But getting rid of those taxes leaves about an 800 billion dollar drop in government revenue.    They didn't care. They never intended to pass this -- they intended to raise money from stupid people, or impress stupid people for political reasons,. 



Only IRS agents would be against it, Boortz said. Watch out, Boortz told his followers. You are going to hear all kinds of lies about Fairtax. "

The bad guys don't want a simple retail sales tax. Anything they say will be a lie.


Fairtax sounds great.  The slogans sound great.

And that 22 million in research!!  Boortz was very proud --even "liberal" economist proved it.  Yale professor Dale Jorgenson proved all the 22 million dollars of research.

Two problems with that.

Yale Professor proved the opposite.

There was not 22 dollars -- much less 22 million dollars - of research on a "very simple" personal retail sales tax.

And Boortz knew that the whole time -- and still knows it. We don't know who paid him, but we do know he was paid.  We offered Boortz 50,000 dollars for any charity -- just show 1 page of that 22 million dollars in research on a "very very simple"  personal retail sales tax to replace all other federal taxes.

He should have been glad to show it -- for free. What Fairtax hustlers did show, we show you.

It's not research. It's not about a simple retail sales tax.  It's a goofy bit of double talk, and there was nothing 22 million about it. 



Who lies about research?  We can just read it, right?

We can just ask the researchers!

So we did.  We read the research.  We asked the researchers.

 Boortz named Dale Jorgeonson as the main researcher for Fairtax.  The way Boortz talked, Jorgenson all but invented it.

 But when you get to talk to Jorgenson personally,  you find he does not support Fairtax or anything remotely like it.

Jorgenson pointed out the absurdity of Fairtax -- that for it to work, even on paper, everyone in United States would have to essentially donate -- let your employer keep -- all the money you used to pay in taxes.

 Let me repeat this ---all the money you paid in federal tax,  Social Security taxes, and income taxes, for Fairtax math to work, your employer would have to keep

That is what Jorgenson found out -- and did not support fairtax at all.  He was polite about it-- apparently he was paid to find Fairtax was great, but he found out it was goofy.

So all the money you paid into Social Security, your employer would have to keep.  And of course that is not in Fairtax, they don't mention that, it's not in the fine print either.

That's just what has to happen if Fairtax were to lower prices.  With that money you donate (because it's not required) 
 if your employer wanted to, they could lower prices by 22%.

That is their researcher.

That is the guy Boortz hoped you would think more or less invented Fairtax. 

That's what Jorgenson reported.  That's what their own guy -- Jorgenson reported. 

How goofy is that?

That is what the research actually shows. 

And Boortz knew that. ______________________________________________


To understand Fairtax, you need to understand the tax base.


Turns out, there is no research about a very simple retail sales tax to replace all other fed taxes, because Fairtax has massive other taxes.

A tax on retail sales ONLY  -- to replace all other fed taxes, would need to be 89%.

So there is no research about this "very simple" retail sales tax because that's not what Fairtax is, not even close.

There is not 22 million, not 2 million, not 2 dollars, not 2 cents ---of research about this "very very simple" retail sales tax to replace all other fed taxes.

In fact, what they call "research" did not cost 22 million at all.  Those documents are not even research, they are distortions by their own public relations company.

Quite the opposite of research.  When you hire a public relations firm to pretend they have 22 million in research about a "very simple retail sales tax" -- then that public relation firm actually puts out fraudulent goofy documents (as we call them) that's the opposite of research.

And they know it, but it's legal and should be legal to lie to the public this way, for politics.  It's not even usual. They didn't invent lying or fooling stupid people with slogans.

They have every right to do so.


What they have are a few documents which are in no way research, any more than a McDonalds bag is research to the health benefits of their Big Macs.

Luckily and rightly, it's legal to call your fraud "research" in politics if you want to. Still, if you donated money to Fairtax (and Fairtax is essentially a fund raising fraud) you can likely get your money back from them, if you want to.  They do not want to go to civil court and defend their fraud, as you will see.

Most of the goofy nonsense is in the documents they call "research."



Most of the goofy nonsense is in the documents they call "research".   Their tax base documents most of all.

See that document here 

A tax base is what they tax. 

They put these words in some very impressive package --  The National Bureau of Economic Research. 

Sounds amazing right?  A National Bureau!  For economic research?

But President Bush Tax Panel was not impressed.  As you will see, President Bush -- because of Neal Boortz - thought Fairtax sounded great (and it does).

SO Bush simply had his tax panel study it.

The Tax Panel, headed by William Gale, PhD, was polite about it, but they showed what I show here -- not candidly, not blunty.  But they showed the massive goofy other taxes, because they are in the fine print, as we show.

Like massive taxes on all cities, counties and states. 

Like massive taxes, even on the poor, if they "consume" surgery and chemo.  As you will see, all "consumption expenditures"  are taxed. Included in that "consumption expenditures is all cancer surgery, and chemo -- never mind how goofy and impossible it is, Fairtax math is based on collecting those tax.

If Fairtax can not collect the goofy impossible taxes (and they can't)  the tax rate would be more like 89%, as you will see.


Notice the title "Taxing Sales -- what rate works"   They made it sound like a sales tax, right?

Most of Fairtax has nothing to do with sales.

For example, the city of Dallas could easily owe over 100 million dollars, because their "consumption expenditures" are over 450 million.   

Because cities are "Certain kind" of person - and pays "Certain taxes"   Dallas would owe 23% tax on all consumption expenditures, including wage, pension and capital expenditures.

 Read their document carefully about their tax base- - we show below.  Massive other taxes are in the tax base, which by definition means they tax these other things.

Things like wage expenditures -- all city county and states pay taxes on wage and pension and all expenditures (other than education expenditures).

All personal consumption -- including medical consumption -- is in the tax base, meaning they tax all medical consumption (not just sales) .

They do not even list retail sales as an item, though they do tax retail sales. 

The city of Dallas would owe over 100 million dollars, because Dallas has over 400 million in overall non-educational expenditures.



What kind of expenditures do they tax (because they are in the tax base)?  Police and fire expenditures. Sewer expenditures. Court and jail expenditures.  Street construction and repair.  Library expenditures. Build a new park for 20 million -- Dallas would owe almost five million in advance (yes advance).

  On and on and on. Yes, if Dallas bought a copy machine they would pay sales tax on that.  Boortz and other hustlers  hope you would think city and states pay such taxes -- which they would -- but the massive other "expenditures" they are taxed, too.

Probably 100 times as much as the trivial retail sales tax, Dallas and every city would have to pay, too.  That is a massive part of Fairtax revenue. 

Literally, their math is based on this -- and they sorta tell you, but never candidly.

These massive other taxes are not retail sales taxes at all, but massive impossible other taxes, on top of, in addition to, the retail sales tax.


What Fairtax does not show -- massive other others.

100 sponsors- - no tax plan ever had that many sponsors. Not supporters, sponsors.

Mike Huckabee ran for President on Fairtax.

Now Vice President Mike Pence spent a lot of time pushing Fairtax.  Dozens of Senators, 100 Congressmen were for it.

Yet they can't get it out of comittee?

Something is very wrong here. 

This is what's wrong. Fairtax sounds great, but was always a goofy ass fraud, and they all (or most) knew it.

But stupid people loved it-- loved the slogans.



And we do need a new tax code!   If all we can do, to replace our current tax code, is this fraud- even Fairtax fraud would be better.


Only by passing this fraud will Fairtax suckers (the few that remain) ever bother to even wonder what on earth are these massive other taxes --NIPA taxes, whatever that means -- are doing in the fine print.

Why not just tax retail sales-- like they said?   

  Because then people would not be so stupid next time,  those hustlers like Huckabee and Pence and Neil Boortz, and the talking heads at FOX NEWS that pushed it, can explain how they were fooled.

People may actually care about "the details" -- meaning what the fine print actually says.

Yes, the slogans are great. 

But the fine print is goofy-- and they knew it was goofy.

All medical consumption is taxed -- without exception.  

Absurdly it does not matter who pays for the cancer surgery and chemo -- whoever "consumes" or uses the goods or services is liable -- without exception.

Someone must pay -- 23% tax -- all not only all lunches, but all cancer surgeries, all services in all nursing homes.  By the stern language in HR 25 and their "research" documetns -- all personal and all governmental consumption expenditures are taxed.

There are no exceptions.   There can be no exceptions or their math does not work.

All city county and states would owe massive taxes for wages, pension and capital expenditures.

All cancer victims, all everyone, all nursing home residents, would have to actually pay these massive taxes -- or their math does not work.

So pass this fraud -- let's do this.  Goofy as it is. 

Then  we can then get a tax code that is not corporate controlled, like our present tax code, and is not a goofy ass fraud, like Fairtax.


The self confident hustlers selling it, sound great.

And it would be great, except for those 2 trillion dollars of impossible goofy taxes the lying bastards hid in the fine print.

We will show you the fine print, though you could find it your self if you read it all (including their "research")  very carefully.



Fairtax has the best slogans.  Simple. Transparent. Researched.  Skin in the game.   Embedded taxes.  A simple retail sales tax.

That 'very very simple' retail sales tax, paid at "point of purchase would be 23%.    That would not matter anyway -- prices drop 22%, and "research"  proved that. 

Plus everyone (legal residents) gets a check from the government to "pay taxes on necessities".   

The only problem, said Neal Boortz with a straight face, would be where to put all the money.

Sounds great, right?


If you can tax baby farts and moonbeams for 2 Trillion, Fairtax can work exactly as they claimed.

Otherwise, it's a fraud. You decide which.....

A tax on all consumption of goods and services....without exception.

Sounds okay?  Right?  Well,  get the rest of what they tax "without exception"

No where in Fairtax HR25, nor in any of their "research" documents do they claim to be a "very very simple"  retail sales tax to replace all other fed taxes.

But they give you that impression in their books videos and speeches.


Is a 20 billion dollar tax on the state of California, for their wage, pension, and capital expenditures  as "simple personal retail sales tax"?

Of course not.  But Fairtax does, in fact, have massive taxes on all city, county and states, on all their wage expenditures, pension expenditures, capital expenditures, and operational expenditures.

In fact these "other taxes" -- other than retail sales taxes -- are the biggest part of Fairtax.  That retail sales tax is only a small part of Fairtax.



In the fine print, that's where. 

Fairtax fine print has it all in there.  Cleverly, but it's there.   If you are smart enough, have a keen eye, you can spot it without help. 

President Bush Tax Panel had no trouble spotting the fraud, and exposed it immediately, on this same basis, the massive other taxes in the fine print.

Why did the Tax Panel have no trouble spotting it?

1) Because they can eat fine print tricks for breakfast, and spit them out for lunch.

2) They actually read the fine print.

3)  They didn't give a hoot what the great slogans said.


Fairtax suckers cant -- and did not -- spot the fraud, because they went by the clever slogans.  They did not read the fine print closely.



This is one example -- from their own documents....

The documents name is "Taxing Sales".  Seems ordinary stuff for a retail sales tax, right?

Read the document carefully.  

  In the Taxing Sales document, very cleverly,  in a way most would not notice because it's anything but clear, they have 23% taxes on all wage and pension benefits.   

A few words here and there, but Fairtax "Tax BASE document is most important.   A "tax base" is by definition what they tax.

If they put rubber ducks in the "tax base"  that means they tax rubber ducks.

If they put pension expenditures, capital investments, all city county and state expenditures, into the tax base, that means they tax those things.

Never -- ever -- not even once, does Fairtax make clear that they have massive, even billion dollar, taxes on all states for their wage pension and capital expenditures.  Yet by clever words here and there, and their definitions, indeed, they do tax all city county and states, massively.

Furthermore, their own documents claim --again cleverly-- that all city county and states "raise their tax rates" to pay for these massive other taxes.

We assume state and local governments take the necessary measures [to raise tax rates].

They did tell you that, if you found that page and read it very closely.

They did not dare make that clear, or make it clear 

1) how much your state would have to raise taxes, 

2) how much  your city would have to raise taxes

3) how much your county would have to raise taxes.

Yet all city county and states would have to raise taxes by about 30-40%. 

And that is just one part of the goofy fraud.  

Do Fairtax hustlers really believe all city county and states will pay huge taxes to the federal government?

No.  And notice Fairtax never said city and states would.  They said "we assume" -- which is legal speak for "we pretend".  

They could have said "we assume baby farts will pay 2 trillion dollars in taxes to the federal government"  but you would notice that, no matter how far down in a footnote they said it.

Yet pretending all city county and states will pay these massive taxes is exactly as logical, exactly as honest, exactly as candid, as pretending baby farts will pay the massive taxes.

All expenditures -- except education expenditures-- are taxed.  Including capital expenditures.  So operate a prison system for 8 billion,  California would owe about 2 billion as a tax.  

Add up all their "expenditures"  and tax that 23% -- California would owe about 20 billion dollars.

And California is supposed to "raise their tax rates" to pay this, per yet another clever Fairtax document, seen here:

Never clearly, never in one place, yet these massive "other taxes"  are how Fairtax ads up.

Without these massive goofy other taxes, as President Bush Tax Advisory Panel showed over a decade ago, Fairtax rate would need to be 89%.

In other words, Fairtax hustlers claim 23% only because they have massive other taxes over and above, in addition to the retail sales tax.

So to make sure you had no idea that they have all these goofy and huge other taxes, included only to make their fraudulent math work, they told you it was a simple retail sales tax, with all that research.

They have no such research.   Their research is part of the fraud.  When you call your own fraud "research" you have reached the level of absurdity Fairtax has. 

_______________________________________ Fairtax slogans are wonderful.  

But check out the the definitions, for example, their definition of a person from HR25.

 Look closer...  and remember, it's in their own document, HR25.  You will need to read their other documents, too, to understand how goofy this is.  As it sits there in this long line of definitions, it seems legal jibberish, but it's the "legal basis" as James Bennett, Fairtax spokesmen, told me for the massive taxes on all cities counties and states.

Cities, counties and states, according to Jim Bennett himself, are supposed to read this definition, realize they have to pay massive taxes,  and then do so.   All because of this definition.

Do you think all cities, all counties, all states are going to read this definition, as James Bennett claimed they will, and then send in hundreds of millions of dollars  because they read this definition?

Bennett said city county and states "read fine print all the time"   and will have "no trouble"  with this.

No trouble?  Dallas Texas would owe over 100 million dollars,  Fairtax never tells them any such thing in any clear way.   So no,  no city, no county, no state will send in a dime because of this goofy definition of a person.

One definition far down in a list of mind-numbing defintions. After they define "inventory"   after they define "personal courier"  service -- they define persons.

By the way -- Jim Bennett is the #2 guy in Fairtax.  He claimed to be in charge of "education" for Fairtax.   He said he "has no plans"  to tell city county and states anything further about these massive taxes "because it's clear enough already".

Clear enough already?

Turns out,  they define all governments as persons.  But a very special kind of "person"  that pays taxes on wage, pension  and operational expenditures.  Anything a city county or state "pays out"  is taxed 23%.

They are supposed to send it in -- "remit"  is the word they use in their fine print. It means "send in".  

Yet governments, we find out in other fine print, pay "Certain kind of taxes".    

All pension expenditures -- the city county or state must pay 23% tax on those. All expenditures -- capital expenditures, operational expenditures.   Operate a library system for 20 million a year?   Your city has to "remit"  about five million to the federal government.

States too - on all expenditures.  Oh yes, they pay the retail sales tax on a car or a computer, but city county and states would pay absurdly high taxes on their wage, pensions, operational expenditures, too.   Every possible "expenditure"  they must pay a tax on --except education. 

How do we know?  Because that is in the revue projections.  Here

So if you check every single document very very closely, as others did, as I did, it is there.  

Turns out, most of Fairtax taxes have nothing to do with personal retail sales. 


22MM in research?  Really?

Also the "research" - which they claim costs 22 million,  has the fine print. Like their hilarious "assumption"  that all city county and states will pay 23% tax on all wage pension and captial investments, a tax on all operational expenses.  

Every city would be taxed massively

Every county would be taxed massively.

Every state would be taxed massively.

Here is the funny part -- they had to be laughing.

They "assume" all city county and states will pay these massive taxes, and pay them in advance

In advance.

Massive taxes on operating your city -- your city owes that in advance, etc etc.

Further funny stuff-- your city your county and  your state are supposed to "raise their tax rates" to pay these massive taxes.

You have to read the fine print closely, as we did. 


You decide. 

Fairtax documents even have the clever "assumptions".

The fine print, when looked at closely (which means read it all) is drastically different than the slogans.  Oh yes, there is a retail sales tax, for a small part of it.

The biggest taxes are the other taxes they did not tell you about.  And they did not tell you because they did not want you to know.  

The "Tax Base" documents, and the definitions in HR25 are key.

But please- - please -- pass Fairtax. It would be hilarious,  and the fools that bought into it might finally learn: oh, details do matter!


As you will see below if Fairtax passed (it won't) suddenly Dallas Texas city council would owe over 100 million dollars to the federal government for their "expenditures,"  including wage, pension, and operational expenditures.

"Certain Wages" trick.  

All cities (about 20,000)  all counties (about 4,000) county and states would owe 23% tax on all expenditures (other than education).

Why yes, and that's in the fine print, because it's in the "Tax BASE". 

Not only is it in the "tax base" -- even more importantly, that is how their math adds up.

Remember this -- it's as basic as possible. These massive other taxes, hidden in the fine print, are the biggest tax, and the only way their math seems to add up.

There simply is not enough retail sales to make the math work for a 23% tax.  It would have to be much, much higher if they only taxed retail sales.

As President Bush Tax Advisory panel showed, for a retail sales tax to bring in enough money to do as Fairtax claimed, the rate could not possibly be 23, or 33, or 43, or even 53 percent. 

 Unless you taxed retail sales more like  89% you simply do not, even on paper, bring in the amount they claim.

Here is an honest estimate of Fairtax revenue sources, given their fine print.  

President Bush Tax panel did same thing I did -- it only took them a few minutes to spot the goofy fraud.  They found it same place I did -- in the fine print.

But the Bush Tax Panel, headed by William Gale, PhD Stanford, can eat fine print tricks for breakfast, spit them out for lunch. 

 See the city county and state "expenditures"  in the tax base.  

Tax base means -- by definition -- they tax it.

Retail sales are not even listed separately.

This is from their own document __________________________________________


The basic approach by hustlers....

See, Fairtax suckers have the slogans bouncing around their brain. Put there by the hustlers -- and those who believe the hustlers. So, suckers see  Fairtax in terms of the slogans. 

Fair, simple, retail sales, transparent...on and on.

Suckers don't care about fine print.

The slogans are entirely different than the fine print.


Fairtax fine print tricks were exposed by others, too. It's not that hard, but you have to find it all. 

 Cleverly they put a few words here, a few there. Probably the most important two places ---a definition of a person in HR25,  and a clever  "assumption" of city and states paying massive taxes in a document by their public relations company, Beacon Hill.

 We show you both of those.

Oh, and the government is suppose to pay this -- in advance. Cities pay in advance. Counties pay in advance.

States pay in advance.

Cities pay in advance

Counties pay in advance.

Where is that part about taxing government "investment" as a "prepay approach"?

Well it's in a footnote.  

They rarely outright lie, but they do lie.  Like this graphic about where their revenue comes from.    

See this chart. Wow, look how spiffy!

That chart shows "92.12%"  of revenue would come from "National retail sales tax".

Oh really?  Sounds like someone did a lot of work to come up with that figure!

The only work was making this crap up.


Most Fairtax suckers  believed the slogans.  

Self confident men told us about it,  Why not?  People are suckers for self confident men, always were, always will be,

In a nutshell,  Fairtax is a goofy fraud because in the fine print are 2 Trillion dollars of goofy taxes they can not possibly collect.   They are not going to get Dallas Texas to pay them 100 million dollars.

They are not going to get the state of Texas to pay them 18 billion.

They are not going to get the state of California to pay them 24 billion, and so on.

But those slogans are wonderful!

They told us just a simple personal retail sales tax. 

 GOVERNMENT    And all "government consumption" too.  

Governments are a special kind of person.  They not only pay on retail "consumption"  they must pay on wage "expenditures".   Pay a policeman 100,000 a year in wage and benefits -- your city had to pay 23,000 to Uncle Sam.

Your city operates a library? A sewer system, each "expends" 2 million dollars, for a total of 4 million?  Your city owes almost 960,000 to Uncle Sam. 

"Natural persons"  are you and me.  Human beings.  But all governments are "persons" too -- and this type of "person"  has to pay 23% tax on all wage expenditures, all pension expenditures, all benefit expenditures.

"We assume that state and local governments will take the necessary measures to maintain the real value of their revenues, which, in this setting,  means raising their tax rates or raising their sales tax bases

All levels - - drastic increases in all tax rates.  The non -retail sales taxes are greater than the retail taxes.    These "other taxes"  are the big part of Fairtax, not the small part.

They did tell you, kinda. Right there.  "We assume". 

But how many fairtax suckers bothered to find those documents and read them closely?

  In their revenue tables, they show you that all government wages and expenditures are in the tax base.  So they told you, in their clever way. 

In a definition of "certain wages"  they tell you that wages paid by government are in the tax base.   And they tell you that includes all benefits paid -- including pensions, benefits, disability.

You didn't know that?  Well you have to be very good at spotting clever definitions -- the definition of a person is a doozey.

After definitions of commercial private courier service, after defintions of "inventory" - if you are not asleep, you should be. 

Then they tell you all governments are persons.  But a very very special kind of person -- one who, because of another clever bit of fine print -- has to pay taxes on wages paid out, pensions paid out, operating expenditures paid out.

They even have to pay taxes on capital expenditures.  And it starts with this definition....

You not only have to spot this doozey, then you have to spot the other tricks.  

Frankly, Fairtax suckers are not that smart.

They would have read every footnote, even in other documents, and remember those definitions, and put two and two together.

You also have to ignore what Boortz and others told you --ignore the slogans.


So it's up to you to figure out Dallas Texas would owe, conservatively estimated, over 100 million dollars to the federal government, because all expenditures by Dallas Texas is over 500 million.

It's up to you because Fairtax hustlers never told you.  Boortz never told you.  


Sounded great to me!  

How about those slogans!!!!   They had me at "Fair, Simple and Transparent".   Who can't go for that? 

Just a  "Very very simple"  retail sales tax on personal consumption.   Replaces all other fed taxes.

Transparent -- so simple a 7th grader can understand it.

Just a 23% tax on your personal retail consumption. 

It's Fair, right?   No one treated differently.

It's Researched, right?   22 Million in research.

No poor person is taxed-- we all get a check every month to pay the tax on "necessities".  

No Social Security taxes.

No Medicare taxes.

50% increase in take home pay (on average).

Yes yes, you will get your social security.  But there is no longer any need to fund the program.  Nor a need  to fund Medicare. All of that is covered with this simple retail sale tax, too.

Oh no, it's not too good to be true!  You have to pay those sales taxes even on doctor visits, wrote Neal Boortz.   "Maybe,"  he wrote "a ten dollar tax". 

Four dollar tax on lunch.

23 dollar tax on a 100 dollar jacket.

See-- they told you the down side too!

Oh, wait a minute, what's the whole story?

Turns out, the whole story is, it's a goofy fraud.  And they dare not pass their own goofy plan - - they know it's a fraud. 



According to the Fairtax book, the average wage earner will get 50% increase in take home pay!   

And -- and --prices will drop by 22%, so that 23% tax "is a wash".    The "extensive" reasearch proved that!

Trouble is -- no, the research does not prove that whatsoever.   The "research"  Boortz talked about, Dale Jorgenson specifically said it won't work.   

The only way all prices go down is hilarious.... everyone --remember this - everyone would have to donate what they used to ;pay in taxes to their employer.  

If -- and only if -- everyone let their employer keep the money they used to pay in social security and income taxes, if that happens -- yes, theoretically that employer could lower  his price.

Noting in HR25 about that absurdity.

Boortz didn't tell you the details.    You will pay almost exactly what you do now, for anything.  

Boortz knew that the entire time, he was well aware of this hilarious absurdity.   Do you think everyone -- without Fairtax folks even mentioning it -- are going to donate the money they used to pay in taxes to their employer?


And then that employer will use that to lower prices?


That's the kind of bullshit Boortz put out.  But he was so self confident, and such a good hustler, his fans didn't bother to check closely.

I checked -- I read what the researcher actually said.

Who knew that was a good idea?


The problem, said Neal Boortz, author of two books about Fairtax, will be this - where to put all the money.

He said that with a straight face.  What will we do with this much money coming into the US Treasury. 

Well -- in a way -- if Boortz could actually collect those massive impossible taxes, yes, it would be a problem where to put it all.    See what we mean by "impossible" to collect.  

As one Fairtax expert said "Fairtax is like taxing moonbeams and baby farts for 2 trillion dollars"



Sure it sounded crazy -- but that research!

  Twenty two million in research!   Even "liberal"  experts like Dale Jorgenson approved, in fact Jorgenson practically invented it - right?   Jorgeson, Boortz told us, proved that it will work!

(Uh, turns out,Jorgenson is actually against Fairtax or anything remotely like it, more on that below).

The most researched plan in US history!  (Uh, turns out, they can't show 1 page of that research, see details below).

There is literally no research that any city, any county, any state would pay a dime of this, much less about  900 billion. 

Fairtax cleverly "assumes"  this will be paid. 

Sounded sooooo good!


AND ME ............

Just that simple retail sales tax.

We buy lunch - pay a 4 dollar tax,  but that's free in a sense, right?  Luncy prices go down 4 dollars,  remember?

Yes a new home for 300,000 would have 70,000 dollar fed tax, but that does not matter.  That Jorgenson guy proved prices will fall that much, right (nope).

Well you don't need to buy a new home, you can buy a used home.  Used products are not taxed.   

How about cancer surgery and chemo?  Is that taxed?  Yep.   You can't get used cancer surgery.

You can't get used chemo. You can't get used nursing care.

See this 

Boortz, in the Fairtax Book, mentioned in passing "perhaps" your doctor will charge a 10 dollar tax on tests.

He did not want anyone to think this was a "free lunch".

Perhaps the doctor will charge a tax?   But the doctor has no choice.  Heart surgery can cost 150,000 dollars, that would be about 32,000 in fed taxes.

Cancer surgery and chemo patients (remember there are no exceptions) could easily owe 30,000 dollars in federal taxes.



It does not matter one  iota what your family or personal   income is--- might be 200,000 income, or 20,000.  It simply does not matter.

Anyone who "consumed" cancer surgery, "consumed"  chemo,  would owe those massive taxes.   It does not matter if insurance paid it, it does not matter if the cancer victim borrowed money to pay it.

Plus all city county and state taxes would be much higher, too.


We have offered 50,000 dollars for one page of that 22MM of research into this "very very simple"  personal retail sales tax that replaces all other fed taxes in "revenue neutral fashion."

There is no such research, not 22MM, not 22 thousand, not 22 cents, because Fairtax is not a simple personal retail sales tax to replace all other fed taxes. 

They do have some documents -- yes -- but that is no more "research" about a very simple retail personal tax to replace all other taxes than my dog is - and I don't have a dog.

What they do have is not only NOT research, it's essentially a fraud, or to be more exact and charitable, it's political theater pumped up to raise money from suckers.


Since it's totally legal to call their cat "research"  and claim it cost 22 million. That's political theater.  

Still, if you sent them any money on this basis, you should contact them if you don't like being defrauded.  If you thought they actually had 22MM in research, because they told you that, and you want the money back -- you probably have a good case in court, if you wanted to pursue it. 

Political theater is one thing - raising funds on fraudulent basis -- not so much. 

The fine print was always there, a few words here, a few there.   This is what they call "research"


If you walk up to Mike Pence today, and ask him how much taxes the city of Indianapolis would have to pay the federal government for their "wage expenditures"   -- he would not have a clue.

He could get a clue, if he looked closely at Fairtax documents like this one ...


They did tell you -- if you saw that document (unlikely) and detangled the whole thing (almost impossible without a lot of effort).


Boortz and others "kinda" told you about that in a few words, but made that sound trivial.  

Yes Boortz and others  knew they were deceptive when they told you this.

Pence probably  had no idea.  He is not a thinker, not a reader.  He had the slogans, the slogans got cheers, that's all he cared about.  It's hard to know who knew the fine print, and who did not, frankly, but Pence did not. 

Boortz did.  You can be sure Boortz did because of the clever, even devious, tortured prose in his book.  He does, for example, tell you the absurdity "even the federal government will become a major taxpayer"  then quickly tells you the fed will pay retail sales tax.

He "forgets" the massive other taxes.

The federal government would be paying ITSELF over 500 billion dollars by this goofy nonsense.   A tax on all their expenditures.  

Yes, it's goofy -- only people pay taxes.  But Fairtax has government paying itself most of it's own taxes.  That is wacko -- but the slogans sould great.

That's not what I say about who pays the taxes, and what they assume


That is not what some bad guy criticizing Fairtax says.  That is what Fairtax own documents say.   

See why we need to read the fine print?   

Especially we need to read the fine print when lying bastards write them, and deliberately give a drastically different sent of slogans to make you think the opposite of that fine print.

Fairtax is much, much, much more than a personal retail sales tax, in their own documents.  We show you those documents.

Fairtax sounds great --that simple retail sales tax.    Essentially just a retail sales tax -- paid at the store. Personal retail sales.

See their own chart from their own document.

A few other trivial taxes, but mostly just that retail sales tax you pay " at the cash register".

But wait, let's look a bit closer.....what are those NIPA taxes?  Wow, NIPA? 

Did they mention those "NIPA" taxes to you?

 Gee -- Boortz never mentioned NIPA taxes but those are the biggest taxes. In fact, the retail sales tax is nowhere near being 92% of their revenue.

I wonder how much those NIPA taxes, and the other taxes are?

Well look at this !   

Taxes -- massive taxes.  Every city, every county, every state-- even the federal government?-- has to pay massive taxes on wage expenditures, pension expenditures.

Here is a chart from sworn testimony to House Ways and Means committee-- under oath --showing a more honest estimate of the various taxes in Fairtax.

Yes, retail sales tax would be the largest single tax.   But overall, that retail sales tax is only a relatively small part of the their tax base.

Tax base means what they tax.

Yes, retail sales are taxed.

But your city, your county, your state, your library district, park district, your police department --whoever "expends" the money, must "remit" 23% tax.

If your city "expends" 20 million dollars a year on police and fire departments, including wages, pensions, benefits, operational expenditures-- your city has to "remit" 23% of that 20 million

In advance!  That's right -- in advance.

Read the fine print about that "advance" tax on government.

It is in this document.....

Here are the exact words --

 This document is part of Fairtax's so called "research".  Their own people wrote it.  Fairtax used Beacon Hill -- a public relations firm -- to put out the hilariously misleading and disingenuous documents.   But read them closely, very closely.  

They do tell you, if you study them diligently, about these massive other taxes.

But Fairtax hustlers told you it was just a very simple retail sales tax. Not even close to the truth.  

Yes, even governments -- specifically governments.  All governments.

The important thing to remember--- that is how Fairtax math adds up on paper.

Even capital expenditures -- taxed.

Building highways --taxed.

Running prisons-- taxed.

Library systems-- taxed.

Court systems- - taxed. 

Education?  Nope.  They "remove" education from the tax base.

But all other expenditures--taxed.

My my my.

Oh my.  


Massive other taxes -- and your city, your county, your state is suppose to "raise their tax rates" accordingly.

That's not what I said.

That is in Fairtax fine print.

And yes, Boortz knew it the whole time. 


 These other taxes are more than the retail sales tax.  The retail sales tax is only a part-- less than half -- of the taxes. 

Gee-- Boortz said just a "very very simple"  retail sales tax.  Yep, that's what he said.

But then we find more than 2 trillion in OTHER taxes in fairtax legislation.   Boortz does not tell us-- we have to look at the fine print very very closely.

But it's there.

You can tell Boortz is close to a crook, or a hustler, because even when he was told about these massive other taxes,he was as deceptive and disingenuous as before. 

Trillions of dollars in other taxes, on top of, in addition to that sales tax.  

I guess Boortz and others "forgot" this every day for 18 years now --- in every book, every youtube video, every speech, every public appearance.

Always forgot to tell the state of Texas their 20 or 22 billion (yes billion) dollars in taxes they would have to pay.   

Boortz has been in Dallas a dozen times -- always "forgot" to mention the 100 million or so that city would have to pay.

Boortz was all over the US in probably every state.  Never did tell them about it.

Gee I wonder why? 

That sure is a lot of "forgetting". 

I don't want to accuse  Boortz  of lying, but that is a peculiar amount of forgetting.  

Mike Pence, now VP, sponsored Fairtax HR25, in the House and later in the Senate. 

At that time, Pence had no clue what was in the fine print.  He just knew the slogans.

Why not sponsor Fairtax? The slogans sounded so good!  Could not be more to it, right?

A simple retail sales tax!

Yes, the sponsor of legislation should know the details -- and know them well.  But Pence had no clue.  His "talks" about Fairtax were straight out of Fairtax list of slogans.

Every Fairtax supporter is that same way --big on slogans, kinda stupid about the "details".

Here are some of the slogans:

A simple retail sales tax. 

Prices drop as much as the tax --so nothing cost more anyway.

You keep your entire paycheck, all researched by 80 top experts. 

The research costs 22 million dollars.

Everyone get a check every month for the tax on "necessities".  

Everyone has skin in the game.

No tax on necessities because you get a check to pay those.

No more social security taxes, medicare taxes, etc.

Just a very simple sales tax.


 Those slogans, if only they were true.

At all.

 In the fine print are massive other taxes that you have to pay, on top of, in addition to, the retail tax. 


What Mike Pence did not notice is that the retail sales tax would bring in about 1.4 Trillion dollars.

But Fairtax taxes over 3 trillion.  In fact, in today's dollars collect over 4 trillion. 

Where do they get that other 2+ trillion dollars? 

Massive other taxes, that's how they get it. By other taxes -- we mean taxes that are in their fine print, very cleverly so.


INDIANA  -- YOU OWE US 14 Billion.

Mike Pence didn't notice the other taxes.

The other taxes are mostly huge taxes on state and local "expenditures".   No, not just retail purchases.

All wage "expenditures,"  all pension "expenditures"  all capital "expenditures"   are taxed.   

The state of Indiana would owe about 14 billion.  But every county could owe taxes, too, to the federal government, on top of that.  Just a guess at the aggregate tax obligation by all counties -- another 10 billion.  Then add all cities, they too would owe those very same taxes.  Add another 20 billion.

And no one told the cities, the counties, the state, in any clear way. 


Fairtax hustlers never wrote "We tax city and states on all their pension wages and capital investment expenditures -- all expenditures other than educational expenditures".

Instead they wrote about their tax.     They do tell you, very cleverly, about their tax base. By definition  what is in the "tax base" is what they tax.  So they told you  -- sort of.

You can easily read HR25, and not realize this, but whatever is in their tax base, by defintion, they tax

Capital expenditures, pension expenditures, operational expenditures, wage expenditures, those are all in the "tax base".

Not just the state of Indiana -- every city in Indiana.  Every county. Every police department. Every park district.  Every court system. Every police system. 

Massive taxes each and every one.



If you read very very closely, they did tell you in one of their documents.  You had to find that one document, then read it extremely closely.   

State and local government are supposed to raise their taxes.

Raise their taxes over 1 trillion dollars (they don't show that part). 

All cities.

All states.

All counties. 

Even the Pentagon, even at federal level, makes no difference.  Their math is based on this.

All of those entities, and more  -- are supposed to RAISE THEIR TAX RATES

Let me repeat that.  They told you this --they told Mike Pence this, they told everyone this, in a very slick way.


All prices will drop 22%,  so the 23% tax won't be a burden.   Everyone gets a "prebate" check every month from the government.

Take home pay, wrote Boortz in the Fairtax Book, goes up by an average of 50%.  

  The only problem with Fairtax, Boortz said in interviews, where be where to put all the money.

US economy will increase by over 30%,   Social Security and Medicare taxes go away, income taxes go away,  the only federal tax is that 23% retail sales tax.

Actually that 23% sales tax is just a part of it.  And they knew that every time they said otherwise. 

Furthermore, Social Security and Medicare go from being funded, right now, by FICA and Medicare taxes, but those taxes entirely go away. 

 From almost 900 billion dollars a year coming in for those programs -- to nothing.  Not a dime.

In fact,  Fairtax has a 700 billion dollar cash give out -- the "prebates".  

Do they have research to show any of this is logical, feasible, or rational?  No.


What research?   We show you the documents they like to pass off as research.   Not only is it not research, (it's silly double speak)  it's not about a personal retail sales tax to replace all other fed taxes.


Political theater -- not a tax code

Fairtax was/ is a great sounding bit of political theater -- fully protected, and rightly so, by the first amendment.

As we find out from Bruce Bartlett, he was approached by Scientology folks who wanted him to help them push that political theater.  



 Vice President Pence actually sponsored Fairtax in Congress, along with 99 others.  He no longer mentions it, yet he sold it then as very nearly a magic wand solution to all our problems, from the debt, to Social Security, to immigration. 

Two candidates for President ran on Fairtax.  Mike Huckabee once called Fairtax his "magic wand"  he could "wave"  as President.
Over forty Republican Senators voiced support of it. 

FOX NEWS hosts pushed Fairtax -- Neil Cavuto, and Sean Hannity most of all.  

This might help explain where it went.


Fraud sounded great because their slogans sound great. 

The retail sales tax part was fine.  That was not the problem.


Hustles must sound great -- not just good, but fantastic.

Fairtax fraud is no exception to that rule. 


They must have laughed, when they wrote this...... it's total bombast, balderdash, nonsense, but it looks sophisticated, right? 

and this ......

Few people can  determine by the above what they actually tax, yet they told you.

Read that real real close.  It says they get all this money from governments.  But they put it like that, in jibberish.

Think they were not laughing at your dumb asses?

They told you -- right there.

Massive goofy impossible other taxes.

But they told you. 


Idiotically, the government is supposed to just pay 60% of it's own taxes.   That's as goofy as goofy gets.

But how do they do that?

In the fine print.  In this case, in the definition of a "person".

A long line of defintions.... you probably would never read them or understand the importance, but it's there. 

After a long list of mind numbing defintions -- such as defining what a "designated commercial private courier service is"  -- they nonchalantly describe a person as all government entities. 

The definition of a person looks like this on the page.....


Why on earth put this "definition of a person"  far far down the definitions -- after such things as the defintion of professional personal courier service??

Yet this definition -- according to their own James Bennett, #2 man in the organization, and an attorney  -- is the "legal basis"  for the massive taxes on wage, pension, capital expenditures, etc.  

Of course it can't be a fraud, with all the research, right?

Neal Boortz even gave us the name of the main researchers- - Dale Jorgenson.   Boortz again and again claimed "Harvard" researches proved Fairtax.

Uh -- no.  Actually Jorgenson said something quite different, and does not even, and never did, support Fairtax. 


Jorgenson, stunningly, wanted HIGHER income taxes  on the wealthy, at least those with "capital income" -- not some bullshit fraud Boortz was talking about.

See this -- from the interview with Jorgenson.  Does it sound like Jorgenson wants Fairtax? Hell no. 

Mr. Jorgenson's "Efficient Taxation of Income" would reform the existing income tax system, by taxing capital income at an effective rate of about 30% and labor income at a flat rate of about 10%

Jorgenson wanted to DOUBLE the tax on capital income -- and reduce the income from work to 10%.

That is extremely liberal -- double the cap gainst tax, and lower tax on work to 10%.

Does that sound like a 23% sales tax to you? That's what Jorgenson wanted, their supposed researcher!