Citizens for an
Alternative Tax System
CATS Las Vegas
Chapter
Newsletter
The Newsletter of the Las Vegas
Chapter of C.A.T.S., a grassroots group working since
1990 to abolish the IRS and Income Tax, replacing
them with a National Retail Sales Tax (NRST).
PUBLISHER:
D.P. "Bracken" Bracken
Issue No. 29 - September 1999
Newsletter Archives:
June
99 | July 99 | Aug 99 | Sept 99 | Oct 99
Nov 99 | Dec 99 | Jan
00 | Feb 00 | Mar 00
Apr 00 | May 00 | June 00 | July 00 | Aug 00
Sept 00 | Oct 00 | Nov 00 | Dec 00 | Jan 01
Feb 01 | Mar 01 | Apr 01 | May 01
Thanks Tru Hawkins and KDWN
Radio!
The Tru Hawkins
show, on KDWN 720AM Radio, invited CATS President
Steven L. Hayes and myself to do a one-hour show,
Monday, August 30 at 10:00 a.m. The show went
extremely well with callers lighting up the board
throughout the entire show. Host Tru Hawkins runs a
very lively show demonstrating his expertise as a
true professional (no pun intended). Tru repeatedly
announced the date and time of this show to his
listeners over the past few weeks. He made sure
everyone in his audience knew about this opportunity
to ask questions regarding the NRST and have them
answered by both Steve and myself.
And call they did!
With questions in abundance. Steve handled their
questions in his usual warm and intelligent manner,
presenting the NRST proposal in the fashion it so
well deserves. I joined in a few times throughout the
show when I saw fit to emphasize a certain point.
Even Tru has become quite conversant in the subject,
impressing me several times with his knowledge of the
NRST principles and facts.
Tru gave out the
CATS toll-free number along with the Las Vegas
Chapter phone number several times during the show.
We received several calls into the local chapter as a
result and I’m certain the national office did
as well.
The CATS Las Vegas
Chapter owes a great debt of gratitude to local
member Marvin Wear for his efforts in setting up this
radio show. In fact, if it wasn’t for
Marvin’s persistence and passion, many of the
local radio talk-show hosts would not know as much as
they do now regarding the national retail sales tax.
Even Tru mentioned this fact to Steve and I during a
commercial break. So...a sincere “Thank
You!!” goes out to Marvin, Tru Hawkins and KDWN
Radio from the entire CATS organization.
"Fair Tax" in
Congress
Americans
for Fair Taxation (AFT) introduced "The
FairTax" in the U.S. House of Representatives on July
14, 1999. Its number is H.R. 2525. This is
also a National Retail Sales Tax (NRST); although
with some significant differences from H.R.
2001. Either bill will replace the IRS and income
tax with a national retail sales tax. This is rapidly
becoming an extremely HOT issue with our Senators and
Representatives, so now is the time to write, call,
fax, email, etc., again and voice your support for
H.R. 2001, The National Retail Sales Tax
Act or H.R. 2525, The FairTax as
your preference to replace the IRS and income
tax.
End the
Confusion
The subjects of
taxes and tax reform are very confusing. No one
person fully understands the income tax code; even
the so-called “experts” come up with
different answers for the same questions. Now that
there is agreement that fundamental tax reform MUST
take place, new proposals crop up on an almost daily
basis. This may seem overwhelming at times - how does
one know which idea is best and keep up with all the
various plans?
Since 1990, CATS has
been the leader in researching the impact of
different taxes on individuals and society. CATS was
instrumental in the creation of H.R. 2001, The
National Retail Sales Tax Act of 1999 and fully
supports this legislation. We honestly compare our
proposal to each and every new plan that appears. If
someone does come up with a better idea, we will be
the first to acknowledge that fact. We have no
‘hidden agenda’ or vested interest in
seeing a change in the way government collects
taxes.
In order to give you
some relief from all the conflicting information you
are hearing regarding tax reform, here are some of
the common myths in the area of taxes and tax
reform:
Myth:
Americans pay very little in taxes.
Truth: Figuring in
federal taxes, state taxes, local taxes, sales taxes,
property taxes, excise taxes, capital gains taxes,
inheritance taxes... you get the point. Then there is
something that those who speak up against tax reform
don't want you to know; you're also paying `hidden
taxes'. What are these? Included in the price of
EVERYTHING you spend money on are the costs of
business income tax and compliance (estimated at
between 15-25% of the final price). One of the big
three auto manufacturers recently did a study on the
cost of the income tax and its compliance imbedded in
the sticker price of a new car. How much do you think
it was? Would you believe 24%. Almost one-forth of
the sticker price!! That means a $20,000 car would
only cost $15,200 without the income tax. Multiply
this across the board on every dollar spent and you
can see why those in power hide this fact from you.
Add all of the above to compute your actual tax
liability. Somewhere in the neighborhood of 45-60% of
every dollar you earn.
Myth: The 15%
National Retail Sales Tax (NRST) will not generate
enough money to fund government.
Truth: The Income
tax is so horribly oppressive and inefficient, it
costs society $600 Billion annually, yet the NRST
costs relatively nothing to collect, places no burden
on society and the Government is fully funded.
Studies show a whopping 13% growth and probably much
more the first year because capital is no longer
taxed; per Jorgenson's macro model of the economy
done at Harvard Business school. This is close to $1
Trillion more to the economy and, since the federal
government's take is about 25% of the economy, a $250
Billion increase in revenues.
Just add up the
numbers above and the 15% revenue neutral retail
sales tax will generate a $600 billion dollar surplus
after the first year. We could pay off the national
debt in 6 to 9 years and we could do it while paying
no more for products with the sales tax built in than
we do now with no sales tax but with our regressive
hidden income tax.
Myth: The
income tax is progressive and the NRST is regressive.
The NRST will hurt the poor and those on fixed
incomes.
Truth: First, it is
important to note that the federal income tax is much
more regressive than we think. The fact is the poor
and middle class carry a substantial hidden income
tax burden. When a welfare recipient goes to buy a
loaf of bread even though they pay no income taxes
directly they will end up paying the income taxes and
substantial compliance costs of the farmer, miller,
baker, distributor, shipper and retailer that are
hidden in the cost of that bread.
Second, the sales
tax is much less regressive than is commonly
believed. Ultimately, all income is consumed. Savings
is simply a deferral of consumption. The
Tauzin-Traficant bill (H.R. 2001) provides a credit
equal to the NRST rate times poverty level against a
workers Social Security payroll taxes. Therefore, all
workers will pay no taxes up to the poverty rate.
Those below the poverty rate will pay no taxes at
all.
We now know the
truth...the poor and those on fixed incomes will only
stand to benefit from lower prices, more jobs, and
most of all the rebate system included in H.R. 2001;
so that in effect NO ONE will pay sales taxes up to
the poverty level.
The myths and lies
surrounding tax reform have deep roots that need to
be dug up and exposed for what they are. You will
play a large part in this by helping others to
understand these simple concepts and communicating
this knowledge to your elected representatives.
Here
is something else to ponder:
The NRST has benefits other than
purely economic ones.
- One: a return of freedom and
privacy - try to put a price tag on
those!!
- Two: a tax system that does not
punish people for being productive under the guise
of "progressivity" i.e., another lie promoting
class warfare.
- Three: a tax system that’s
EASY to understand.
- Four: NO MORE IRS!!!
Please get the facts on the NRST.
Contact CATS at 1-800-767-7577
Special Guest in
Sept.
William Prouty, from
Americans for Constitutional Action
(ACA), is scheduled to speak at our next
meeting, Monday, September 13. Mr. Prouty gives NRST
presentations to groups throughout the U.S. Please
join us on that day to show him a warm CATS Las Vegas
welcome.
Help
Wanted
This newsletter
comes to you free every month, but it
is not free to produce, print, fold,
label, stamp and mail. It comes to you by way of
donations from the caring members of the CATS Las
Vegas Chapter and by my labor. If you’re not
contributing something, no matter how small, to the
LV Chapter; please consider doing so now.
My sincere
appreciation goes out to every one of you who are
making regular or periodic contributions to keep the
Las Vegas Chapter operating. Donations of ANY size
are needed and wanted. ALL assistance is greatly
appreciated. Please make your check or Money Order
payable to: "D.P. Bracken" and mail to:
CATS Las Vegas Chapter
5181 Gains Mill St.
Las Vegas, NV 89122
Remember....you can always: Contact CATS
at: 1-800-767-7577
or call me:
D.P. "Bracken" Bracken
Chairman, Las Vegas Chapter
(702) 454-5736
Citizens for an Alternative Tax System (CATS)
is a national grassroots non-profit organization
committed to bringing about the end of the income tax
and the IRS by replacing both with a national retail
sales tax (NRST).
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