Sam Clovis - 2014 Iowa GOP Lincoln Dinner
Sam Clovis speaking at the Iowa GOP Lincoln Dinner in Cedar Rapids on 4/11/14.
Photo credit: Dave Davidson – Prezography.com

(Sioux City, IA) Sam Clovis, candidate for U.S. Senate, spent Tax Day campaigning on the merits of the Fair Tax.  Clovis stated, “Between special interest loopholes and the targeting of political opponents, the IRS has become a burden Americans can well do without.”  The Fair Tax will repeal the current tax code and replace it with a national sales tax.

“70,000-plus pages of ridiculous punishment of American productivity is a very good reason to abolish the tax code,” said Clovis.  “Using the IRS to stifle the free speech of political opponents is an obvious reason to scrap the whole thing.  And lobbyists using their influence to gain special status at the expense of everyone else is just one more reason American needs fundamental tax reform.”

The Fair Tax replaces all federal income taxes, capital gains taxes, payroll taxes, and the death tax and puts a national sales tax in its place.  “American is being humiliated by its own government,” said Clovis.  “And abolishing the IRS is the first step in reestablishing the proper relationship between the citizen and government.

Sam Clovis holds a Masters in Business Administration in Management and a Doctorate in Public Administration.  He is currently a tenured full professor at a private liberal arts college in northwest Iowa.  He served in the United States Air Force for 25 years and still provides leadership to defense and homeland security institutions.  He lives in Hinton, IA with his wife Charlotte and stepson Khan.  More information on the candidate and his campaign may be obtained at www.samclovis.com.

6 comments
  1. If any of you Iowans get to hear Sam speak in person, please be sure to ask him if he understands that:
    The real Fairtax exclusive rate is close to 60% after allowing for 15% evasion and correcting the horrendous mistake made in proposing to have the federal government tax State and Local government consumption. Never happened and never will unless we lose our Republic! How high is too high, Sam?
    The prebate is not a tax refund but is a $600 billion annual cash grant entitlement coming at a time when we need less, not more entitlements.
    the Fairtax creates a group of tens of millions of lower income workers that will never pay one net dime in federal tax due to the prebate, yet all will still receive full SS retirement benefits when eligible. Is that the kind of “nanny state” Sam supports?
    Seniors get thrown under the bus by double taxing their after tax savings, by forcing seniors to resume paying for their SS benefits with their sales tax dollars, and by significantly increasing middle class senior’s share of the federal tax burden. The Fairtax certainly isn’t fair.

    1. 1. People get all wrapped around the axle when talking about the rate. The current bill as written uses the rate of 23%. If you are going to compare apples to apples, you have to quote rates using the same base line. The FairTax is a fed tax that is built into the price of the product. Guess what, with the current tax system, federal taxes are built into the price of the product. Where does the business get the money to pay business taxes & payroll taxes? They increase the price of the product to pay the taxes and pay for labor and whatever other costs they have plus a profit margin. The FairTax bean counters have estimated that on average, 22% of the price of a product we buy today are federal taxes. After the FairTax is passed, when you see an item on the shelf that is priced $100, when you get to the cash register, you will pay $100. Look at the receipt and it will show you that the total was $100, $23 went to the feds in taxes and the item cost $77. You really get to see how much federal taxes you are really paying.
      2. Guess what, the state and fed gov’t are already paying the imbedded taxes that are factored into the price of the products today. The FairTax keeps this in place. Why should gov’t get a purchasing advantage over the general public?
      3. There are already millions of low income people not paying taxes and getting back more than they paid in. Much of it through fraud. Can you say earned income tax credit?

      1. Rabbittownman,
        First of all, I don’t care what HR25 says is the rate, everyone ought to know that the retail merchant has to add 30% to their costs plus profit in order to arrive at a 23% inclusive rate. If one adds just 23% to costs, then the inclusive rate would be only 19%, and that won’t work, will it. Next, you are correct that back in 1997, Prof Dale Jorgenson did an embedded tax study for AFFT. He concluded that the average embedded tax costs were 22%. What many Fairtaxers still don’t understand is that Jorgenson included both employee tax costs and employer tax costs in his 22%. Almost two thirds of the tax costs were employee FICA and individual income taxes. Unless we take a huge cut in take home pay–(back to our current net after taxes)–the best employers can do is remove a maximum of 10% in tax costs, and after adding the 30% sales tax, retail prices have to rise by an average of 17%. (1.00 x .9 x 1.30 = 1.17) That assumes that all tax cost savings go to cost reductions and nothing to debt reduction, payroll increases, shareholder payments, business expansion, etc. etc. And, by the way, you can’t know how much your federal tax burden is by looking at that sales receipt. Almost 20% of the Fairtax tax base is in government taxation. Governments do not pay taxes any more than do businesses. Governments just pass the tax cost along in the form of higher taxes. In order to pay for the inappropriate taxation of governments, governments at all levels will have to raise all types of taxes, and you won’t ever be able to sort out your federal tax load.
        2. What is disappointing to me is that given a chance to reduce government costs by around 10%, you and others seem to prefer to jack up government costs for no good reason. Check out HR25, Se.704 which says that if any government agency sells more than $2500/quarter on the private market, that agency will be classified as a “government enterprise”, and will have to collect and remit the sales tax just like a retail business. What is your problem with that? Why do you want to increase the cost of the federal government?
        3. I agree that there are millions of folks that pay no income tax, but they all pay FICA if they are working. Yes, the EITC does offset some of those costs for workers for a limited time, but the Fairtax prebate offsets all sales tax costs for lower income workers for ever. Getting their retirement benefits without paying one net dime seems like a bad policy to me.

      2. 1. “Governments do not pay taxes any more than do businesses”
        How do governments avoid paying the imbedded taxes that are currently in the price of items today? Answer – they don’t.
        2. “What many Fairtaxers still don’t understand is that Jorgenson included both employee tax costs and employer tax costs in his 22%”
        Of course he did. They are both tax costs to the business. You can claim all day long that the part that the employee supposedly pays is not a cost to the business, but it most certainly is.
        3. “if any government agency sells more than $2500/quarter on the private
        market, that agency will be classified as a “government enterprise”, and
        will have to collect and remit the sales tax just like a retail
        business”
        If a government department is running as a business, why should they be given an advantage over the private sector? Say a city owns and runs a golf course, should they not collect the same taxes from customers that a privately owned business would? If they don’t, the private business would be at a 23% disadvantage. This keeps a level playing field.

      3. 1. That is right, governments have to pay embedded taxes just like all of us. And they pay those increased prices by raising our taxes. Now, when the business share of embedded taxes goes away, the price of goods and services for the government consumption will rise by a minimum of 17% as I showed you. What is your point?
        2. You can say “of course he did”, but you would be amazed how many Fairtaxers still subscribe to the “free lunch” Fairtax myth. They believe that they will get 100% of their pay/pensions and retail prices will remain about the same. Nonsense, and I am glad you understand that issue!
        3. You are right. Your government owned golf course would have to collect and remit the sales tax as a “government enterprise, in accordance with HR25, Sec. 704. Glad we agree!

  2. The “Fair Tax” is a Fraud – we need a 10% “Tithe” Tax!

    I am a retired lifetime tax consulting professional (JD, LLM
    in Taxation, CPA, co-author of a 3 volume tax treatise, lecturer), with no
    financial stake in ANY tax system. This only a brief summary – for supporting
    details of all comments, call Stephen C. Eldridge tel. 423-532-7337.

    The so-called “Fair Tax” (“FT”) is a fraud – it is MORE
    WEALTH REDISTRIBUTION, AND a financial SCAM.

    In their own words, FT proudly advertises that it is MORE
    PROGRESSIVE (yes, it is MORE WELFARE).

    Of prime importance, the Prebate is NOT a real refund of FT
    paid as it appears to be. It is a new $600B ENTITLEMENT, which would have ALL
    Americans receiving a substantial monthly check from the federal govt – a very
    bad idea for those of us who are not Socialists. We simply cannot afford yet
    another huge entitlement that will only be increased in the future.

    The FT and the Prebate would leave the working poor making
    no contribution at all to funding the federal budget and paying nothing even
    for their personal SS/Medi benefits. The FT and the Prebate FT then extend tax
    welfare to the non-working poor – and also take the next Progressive
    Cloward-Piven step towards giving SS/Medi to all regardless of work, by removing
    the tax “penalty” for reporting SS Wages, thereby “inviting” the fraudulent
    reporting of SS Wages.

    The Prebate is apparently calculated to merely repay the
    poor for any FT they pay, but actually would pay them far MORE than any FT they
    might pay (by “assuming” the poor spend MORE than the underlying HHS Poverty
    Guidelines and also by “assuming” they will pay FT on ALL of their purchases,
    but they WON’T) – and FT also provides
    free SS/Medi to the working (and some non-working) poor.

    The FT produces a 40-70% in-your-face retail sales tax that
    would spark a taxpayer rebellion that would destroy our retail-sales-sensitive
    economy. 40% = 30% (not 23%) FT + e.g., 10% S/L sales tax and 70% is the rate
    needed at a sample 30% FT evasion rate (the FT incredibly assumes ZERO evasion
    and ZERO intentional reduction in spending and ZERO migration from new to used
    goods).

    IN ADDITION to that 40-70% tax, the FT contains several
    HIDDEN TAXES. 1) FT’s 30% rate is really
    42+%; the 12+% is hidden by having fed + S/L govts paying FT (which is likely
    unconstitutional) – ultimately, they must get that money from you. 2) The
    initial 30% rate is 1-5% short and that plus any other revenue shortfall will
    have to be made up by raising more FT (or a NEW Income Tax), 3) The fed budget
    will rise for a) higher SS benefits and
    higher COLA’s payable to all federal retirees, both induced by FT’s price increase
    of nearly 30%, and for b) fraudulent new SS benefits invited by FT’s removal of
    the “tax penalty” for reporting SS Wages, –
    more FT (or a NEW Income Tax) we be required to fund these.

    The NEW IRS (i.e., the STAA) may well be far worse, far more
    invasive than today’s IRS (the buyer is liable to pay FT and get/show a receipt
    – The STAA may audit consumers) – also we may well have to file an “Annual FT
    Summary”.

    We may well wind up with BOTH a NEW Income Tax AND the FT,
    when Congress repeals the FT’s Sunset Clause and enact a NEW Income Tax .

    Seniors will start to pay for SS/Medi again and some will
    pay a 2nd-3rd tax on their earnings. Many middle class seniors will
    pay more FT than they would have paid in Income Tax and many will lose
    purchasing power because of 1) the
    nearly 30% price increases and 2) the higher S/L & federal taxes required
    because they must pay FT and can only get the funds from us, and 3) higher
    federal taxes due to higher SS & pension COLA’s and fraudulent SS benefits.

    The FT promises grand economic benefits which are all
    UNPREDICTABLE – mere Hype & Change.

    What we need is a Flat Income Tax with No Deductions, No
    Exemptions, No Credits and a 10% rate, with business income taxed to
    shareholders on a very simple basis (i.e., no corporate income tax) – See H.R.
    1040 (which has been included in Paul Ryan’s new budget), but with changes as
    noted here (IRS is neutered, 1 page tax filing, everyone pays – more
    evolutionary). Call your representatives in Congress and let them know that
    this is what you want.

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