FairTax Spokesman Bennett Blasts Lobbying Report

"This is exactly the kind of news that makes folks distrust government," said FairTax Spokesman and Northeast Volunteer Regional Director, James M. Bennett recently. Reacting to a report showing that thirty major corporations paid more money to lobbyists than they paid in income tax from 2008 to 2010, Bennett went on to declare, "That report again proves that the Tax Code is broken, and we need to replace it with the FairTax."

Bennett was speaking about a report by Ashley Portero in the December 9, 2011 edition of International Business Times, that suggested that lobbing by big business pays off handsomely when it comes to the Tax Code. Twenty-nine out of the thirty companies who paid lobbyists five million dollars a year on average, each, all had negative federal corporate income tax balances.

The only company among them that had to pay tax was Fedex, who also profited from lobbying. Fedex paid only $37 million in federal corporate income tax over the period, or effectively 0.87% of its earnings. The federal corporate income tax rate on earnings over $75,000 normally jumps back and forth between 34% and 39%, depending on the bracket, and levels out at 35% on earnings over $18.33 million.

According to a table in the Potero report, the six companies that appeared to get the biggest tax bang for their lobbying buck were: Paccar, Pepco Holdings, Inategrys Energy Group, NiSource, Centerpoint Energy, and Consolidated Edison. Their lobbying expenses were 0.9% of their negative tax balances.

For the five companies with the biggest profits, Wells Fargo, Verizon Communications, General Electric, Boeing and NextEra Energy, lobbying paid off for them, as well. Average lobbying expense for them was 9.1% of their negative tax balances.

"The Tax Code clearly favors large businesses, such as these thirty, and trade groups who can afford lobbyists," Bennett said. "The Code puts medium and smaller businesses, who cannot afford lobbyists, at a real disadvantage."

"The FairTax is the solution," Bennett continued. The FairTax, a bill in Congress, removes federal corporate income and payroll taxes from all businesses, putting small businesses on the same tax footing as mega-businesses. The FairTax replaces these taxes, as well as personal federal income, payroll, employment and death taxes, with a national retail sales tax on all new goods and services, without exception, but once and only once. With payroll taxes and embedded tax costs gone, the FairTax is indeed fair to everyone. The FairTax features a Family Consumption Allowance to assure that no one legally in the country pays a dime of tax on consumption for essentials up to the poverty level. One cannot make that claim today.

The FairTax is calculated to be revenue-neutral, assuring that today's federal programs are funded at the same level as they are today. The FairTax releases the true strength of the American economy and puts you, the consumer, in control of when you pay tax and how much tax you pay.

"Call your U.S. Senator and Congressman and demand the FairTax!" Bennett said. For more information and to sign up, go to www.fairtax.org.

Let's Re-Rail and Hijack the Cain Train

Many of us are disappointed with the failure of the Cain campaign, but a failure such as this sometimes can beget opportunity. The opportunity, if we take advantage of it, is to get to the Cain supporters and to recruit them for the FairTax.

We should have a receptive group here because Herman Cain is a FairTax supporter. Whether for political expediency or tactics, he came out with a modified plan.

I would invite anyone who has a connection to in the Cain organization to share it with me.

With seven remaining candidates (Bachmann, Gingrich, Huntsman, Paul, Perry, Romney, Santorum), we will have six more opportunities, but few as great as this one.

~Jim