This time we’ll use Daniel Malloy, the Washington correspondent for The Atlanta-Journal Constitution as our example.  Example of what?  Example of the type of reporting that makes it tough for The FairTax to gain a foothold with many who are tired of our present tax system. 

Malloy was reporting on the fact that Georgia Congressman Hank Johnson, a Democrat (Yeah – THAT Hank Johnson.  The one who said Guam is going to tip over and sink) showed up at a rally in front of the U.S. Capitol last Monday to push the FairTax.  Johnson says he was there to promote a debate on major tax reform.  Well good for him … there may be something there worth salvaging after all. 

Let’s get to the reporting though.  Malloy offers this bit of journalism regarding the FairTax:

“The idea is panned by liberals as shifting the tax burden from the rich who are able to save the bulk of their income to the poor who must spend almost all of it on basic needs.”

OK … yes.  That’s what many liberals say about the FairTax.  But they’re wrong;   wholly and completely wrong.  And you would think that an enterprising reporter who wants to present the whole story would do enough research to show that they are wrong.  Here is how a good reporter – one who does his research – would have written that paragraph. 

“The idea is panned by liberals as shifting the tax burden from the rich who are able to save the bulk of their income to the poor who must spend almost all of it on basic needs. The FairTax, in fact, completely protects the poor from paying any taxes of any nature whatsoever to the federal government until they have taken care of the basic needs of themselves and their families.

Here’s the concept.  Nobody – you you, not me, not anybody – should ever have to pay one dime of their earnings to the federal government in taxes until we have taken care of the basic needs of our families.  This includes income taxes as well as payroll taxes; Social Security and Medicare.  You take care of your family first – then you ante up to pay for government.  Makes perfect sense, actually.  If Americans were in a position to dedicate their wages to the support of their families before government, the government might be able to spend a lot less propping up low income families.

Here’s how it works:

Every year the Commerce Department publishes poverty figures.  If you’re curious about the current poverty levels, you can click here to figure out whether you’re one of the poor, poor, pitiful poor or not.  This is the amount of money the feds believe you need to have to take care of the basic needs of your family.  The 2011 levels show that if you are a family of four; mom, pop and two children under 18, you need $22,811 to cover your basic needs. 

Get out the calculators.  The FairTax rate is 23%.  You have to spend $1901 per month on the basics.  That means amount of FairTax you will pay every month as you spend on your family’s basic needs will be $427.23.   So, at the beginning of every month – before, not after you spend the money – you get a direct deposit into your checking account or a credit to a charge or debit card in the amount of $427.23.  The government is covering, in advance, the amount you’re going to need to pay the FairTax on your family’s basic necessities.  No --- it’s not welfare.  It’s just the government advancing you the money that you are then going to pay back to the government over that month as you pay your rent, buy your gasoline, and feed and clothe your family.  When the FairTax was being developed this idea was presented to a focus group.  A lady in the group – a lady of rather limited income – exclaimed “Why THAT’S a fair tax!  Hence the name. 

It’s too bad that reporters like Daniel Malloy don’t have a more complete understanding of the research behind and the workings of the FairTax.  Perhaps if they did, and if the facts were presented more evenly, politicians might not find the idea quite so easy to demagogue.