INVOICE TAXES 

 

We TheFiscals, contend that a person's salary or wage is private property the moment his/her precious time and labor, skill and craft, health and well-being are exchange for compensation. The sweat off your brow while laboring in farm fields, construction sites, refineries, coal mines, stores, offices, and factories is replaceable in time and place. It no longer has value, because it cannot be returned. Therefore cannot be taxed. Unlike other assets: stocks, bonds, that have income appreciation potential due to extemporaneous factors such as community property described as InterState highways, Maritime ports, secured navigational international waters and general peace and welfare of the United States to conduct business enterprise freely, can be taxed accordingly.
 
Understanding this different taxing authority it is incumbent on the American People to advocate for National Invoice Taxes. These different taxes are to be designated for the funding of specific Federal and State Government Departments based on the tangible product or service contained therein.
 
The various Federal Invoice Taxes TheFiscals propose: Pallet tax, Copy Cat Tax, Raw Material Tax and Invoice tax can only be brought up for an increase on the Floor of The House of Representatives.  The President of The United States by written invitation to Congress can initiate a vote by a simple majority of both Houses of Congress to lower any particular invoice tax separately to stimulate or cool the economy from time to time.
 
To approve the increases in any of invoice taxes, a 2/3 supermajority vote of the House and Senate must be met. The purpose of the exercise is to announce to the Public what branch of Government is initiating the increase in Taxes. The American People can decide at the ballot box which is to be held accountable on Election Day. The Constitutional Authority remains solely in the House of Representatives per the US Constitution.  By giving the exclusive power to the Executive Branch to start the debate in his or her formal request, the President has 'skin in the game' politically. The President and Congress will be held to a higher standard when the US Economy grows or recesses as a result of their tax policies. This new taxing dynamic will strike a natural balance against the Federal Reserve's Board Prime Rate decisions and the Minimum Reserve Balance Requirements to all Banks. The effect of these actions will be more noticeable to the General Public.
 

THE FAIRTAX is just too Damn High!

On the other side of the consumption tax argument, is the consumption tax alternative as proposed by FairTax.org, The "one size fits all' tax is a much higher tax rate at 23% on all purchases is tough to sell politically.  Such a high tax on a broad spectrum of goods and services is too broad. It does not create a hierarchy of taxes for the Micro-Economies in the overall US Economy. Some industries are adversely impacted directly, and in a manner that results in uncompetitive values of scale. Such a cocktail will undermine whole sectors of the US Economy and thus debilitating the effect of employing the American people.
 
This FairTax proposal is likely to be abused by Statist Politicians and may require keeping the IRS in place for collection purposes. The low wage earner who is presently unemployed or without the modern technological tools to compete in the labor market will become destitute under a FairTax.

    
WHY THE FLATAX? 
 

The reason why the Flat Tax proposal is more plausible for both political parties in America after 30 years of political banter, is that liberals and Statists alike, understand it requires the beloved Internal Revenue Service to remain in place as an institution. The only manner to eliminate the IRS and to reduce the need for a Balance Budget Amendment is a hybrid consumption tax. The Following are what TheFiscals call, the CopyCat Taxes.  

 

Pallet Tax

All US, non-consumable, non-perishable raw materials such iron ore, aluminum, precious metals, rare earth metals, lumber, paper products, etc., are taxed at 5% of wholesale value by weight at the time it is containerized in any manner for resale domestically. These pallet taxes are to be allocated to the Department of National Defense budget.
 
All consumable raw material grain harvests such as wheat, corn, rice, soybean, and refined sugar from Farms receiving annual subsidies from the US Department of Agriculture for more than five years consecutively, will be taxed at 2% of the wholesale price per standard pallet or container unit for domestic consumption.  If exportation of raw materials in bulk are purchased by Foreign subsidiaries of American Companies, they will be invoice taxed with an additional export tax of 3% thus equal to 5%. 
 
The trigger for invoice tax is simple. Once a product is harvested, mined, excavated, palletized or containerized and weighed for distribution and delivery domestically or abroad, the respective tax is applied to the Bill of Sale or Bill of Lading.
 
NOTE: Produce not subsidized by the Congress farm subsidies such as apples, oranges, grapes, oranges, and vegetables: lettuce, tomatoes, asparagus, and potato farmed in the USA for domestic consumption is tax-free as well as all processed food, meat and fowl. 
 

Retail Invoice Tax

The Invoice tax applies to the factors of assembly in the Manufacturing process from Brand to primary vendors and Sub-Contractors to marketers to final packaging for distribution wholesalers to last Retail sale to the consumer at 2% throughout. The various Invoice Taxes have the more economic flexibility to stimulate the US Economy than the across the board Flat Tax proposals on wages. Progressives in both Parties believe they can have their cake and eat it too, taxing hard working Capital. TheFiscals are at odds with mainstream RINOS of the GOP on taxing wages. We call them the ‘OL in Grand ‘Ol Party.
 
One must consider the harsh reality for Conservatives who do not heed TheFiscals warning: reinvent the American tax code by 2020, not a day, next week or a month next year, but today. Let all Consumers within the US Economy pay tax on lifestyle choices and luxuries, not wages. If not, the Statists amongst us will sell lies to the working class. They will join forces with their Socialist advocates and garner a Legislative Action for Value Added Taxes [VAT] in addition to the Federal Income Tax. This tax on the factors of Production is very similar in throughout the European Community. It has stifled Gross National Product at stagnant (1) One percent average for the last (30) thirty years. Why? The VAT is a supplementary tax on Personal incomes and Corporate earnings. The Value Added Tax (VAT)  is coming to America in addition to all other Federal Income taxes if theFiscals Copy Cat Taxes are not on the table for discussion by 2020. The question is the Progressive Income Tax going to be "replaced" or will the VAT Tax be added to your tax filings. You decide.
 
TheFiscals will call all the various invoice taxes as "copy cat taxes." TheFiscals' invoice tax concept is the only viable opportunity to replace the Progressive Income Tax, thus converting the IRS from a collection Agency into a reporting agency. The new Agency will be called the Federal Income Clearing House "The FICH" (see homepage: TheFICH ACT)
 
By diminishing the Internal Revenue Service's police authority to audit and intimidate, the new responsibility of collecting all taxes will fall on all (50) fifty State Departments of Revenue. Keep in mind, the States already collect Sales tax and divide Real Estate taxes between Counties and Municipalities. All other taxes like Transportation taxes on highway tolls and traffic citations, trade licenses, and state employee payroll taxes continue unabated. Not to mention that the State also collects filing fees for Incorporations, as well as Civil fines of all sorts, including zoning violations, licenses, renewals, and the like. This transition is natural without disruption.