Targeted Marketing

Replies to This Discussion

Permalink Reply by Billie on February 14, 2009 at 3:04pm

You tell them they will NOT have to pay taxes on their Social Security and when they die the money goes to their heirs not to the government. It is best to approach them individually or 2 at a time. I have not tried a group. Billie in Beavercreek

Permalink Reply by Tony on February 14, 2009 at 6:08pm

We all know once they hear of the FairTax they will go for it....the question is what is the best way to get that message to them.

With the younger generation its through the internet and sites like facebook, youtube etc.
How do we target the elder generation that same way?

Permalink Reply by Harvey Robbers on February 26, 2009 at 3:38pm

What is the nature of your arguement? Social Security is a fixed entity that would be paid as part of the fair tax. The resolution of where the money left in the account when a person dies I do not believe is in HR 25. This is not the way to get new converts in the senior area. My own situation is an example in point... I live on my dividend income which has taken a big hit due to Obama's new approach. I'm 59 and retired. The IRA's are a new tool that has only been around for ten years. Most seniors I know, don't have any real money in them. The conversion to a consumer based economy will take some time and the seniors will not see an advantage for themselves until the prices get adjusted and hopefully go down. Social Secutrity is based on income, what happens when you are not reporting your income? what benifit is this? Many have based their retirement plans on a return from social security - I have but I don't trust the the fund to be there long enough to support me. I think many my age are of the same opinion. Those older than me are probably relying on the money in Socail seciurity to get though the month. so a real approach to handle this situation would be good to have.

Permalink Reply by Marilyn Rickert on February 14, 2009 at 6:04pm

This is a hard group because so many feel "I don't pay taxes".

Marilyn

Permalink Reply by cary henderson on February 14, 2009 at 7:09pm

I think it's best to have in mind the group that you are presenting to and first address their concerns.

In the case of seniors the first concern I hear is "How will this affect my Social Security". A good number of them are worried that this is a plan to privatize or end S.S. Once you have explained that the FairTax won't effect their benefits at all, and in fact guarantees the future of the program you can move on to explain how it will improve their life.

With people in the 30 to 65 age group I find it easier as they are currently being brutalized by the current system. Most people in this group understand that a consumption tax makes more sense. Remember when the United Auto Workers endorsed Gov.Huckabee, They knew he was promoting the FairTax so acknowledged it. These folks just don't endorse Republicans.

People under 30 split into several groups. Their range is from totally apathetic to very engaged and enlightened. Many in this group drank the Obama kool aid in following the word "change". What they don't understand is that it's 96 years of "change" that brought our country to this point. At the other end of this spectrum are the young people who were attracted to the Ron Paul campaign. They got excited for many reasons but I think his early use of the Internet drew them in numbers more than anything else. Among this group there are many who have actually become interested in our Constitution.

So in any case I think you need to tailor the discussion to engage them first, then once they have become at least willing to hear a few details, you can let them ask the questions. Once they here a few answers that they can apply to their own situation they'll be ready for a more detailed education on the FairTax.

Permalink Reply by Tony on February 14, 2009 at 10:09pm

I think people are misunderstanding.
The discussion with regards to the FairTax is an easy one, just as Cary said.....find their relationship with taxes and their feelings towards them and utilize that.

What I'm talking about is the best ways to find the people who do not know about it and then get them informed.

Like we do for the younger generation....get FT on Facebook, YouTube and MySpace.....how do we do the same for the older generation?

Permalink Reply by Bill Rollyson on March 6, 2009 at 7:46pm

first of all a senior under the FairTax takes advantage of the prebate. The prebate replaces the standard deduction/personal exemption combiniation of the current system and is larger at every family size. For example a senior couple today gets a standard deduction for $11,400 and personla exemptions of $3,650 each or $7,300 for a couple. That is a grand total of $18,700 before they start paying income taxes. If they aren't working, they don't pay payroll taxes, and their lowest base income tax rate starts at 15%. Once they reach $32,000 (for a couple including 1/2 of their social security benefit) their social security begins to be taxed as well. The average aged 65 couple draws about $20,000 in social Security benefits. Because of the Financial condition of Social Security funds, most proposals in congress are to increase the age of benefit eligibility, lower the benefits (same as taxing them higher) and to raise the cost of funding social security for those still working.

The FairTax family consumption allowance that the prebate is based on is over $20,000 for 2009. That is a $1,300 advantage over the current system. Under the FairTax, Social Security benefits are adjusted upwards based on the after tax price of goods. So if final prices go up 15% under the FairTax, Social Security benefits are adjusted upwards by 15%. This in effect completly uxtaxes social security benefits and when added together with the prebate, allows a senior couple to spend over $40,000 in taxable consumption before paying one penney in FairTax. This is the case regardless the source of the income.

Now "taxable consumption" is also important because most seniors have already paid for their homes so their major expenses are a car, medicine, food and utilities. By law, utilities include their tax burden in final prices, so their prices WILL reduce under the FairTax. Cars and food are taxed today for seniors because they are paid with aftertax dollars and not deductible. The FairTax simply moves that taxation from the from of your income to the end of your consumption. Medicine is only deductible is the senior couple itemizes and is only tax free for the senior under the FairTax if it is paid for by the insurance company so that may or may not be an advantage.

In summary, the FairTax will only disadvantage "rich seniors" who "spend" perhaps $80,000 a year or more in taxable consumption and at that level, it is not for necessities they spend but for pleasure. Kotlikoff says they will be disadvantaged by perhaps 1% to 2% the first year and be better off by the tenth year.

Now consider that politicians have been promising seniors (I am a senior AND a veteran) more and more benefits at the expense of our kids for decades. This has been a generational transfer that will be carried by our children. I don't know about any of the rest of you, but I was willing to risk my life for the future of my children in the service (and yours by default). I'm certainly willing to be disadvantaged by 2% if I'm spending over $80,000 to secure my children's future.

Permalink Reply by Bill Rollyson on March 6, 2009 at 7:57pm

To the original question, the best way to market to seniors is to get out in front of them. The major associations will not support the Fairtax because they attract members based on the tax code. Under the FairTax, they become less attractive. However at local levels, you can still make a difference. So if you approached AARP at the national or state level, you would find resistance, but if you spoke at a local meeting, most of their members would be supportive and ultimately that affects the national organizations support. You can find your local ARRP organziation here: http://www.aarp.org/about_aarp/community_service/wrapper_chapter.py

Another potential is to google "Senior Citizen Center" in your community. They often have meetings with speakers to discuss topics of interest to the seniors that use the center, so call them up, ask for the director and go visit wil them.

As others have mentioned, if you have a retirement community near you, those are certainly good places to find seniors. The approach will depend on the community. They might have a center and function as the senior centers above. They might help you set up and advertise a meeting. If they don't have a center, you need to either enter the communitiy to build individual relationships, do a door to door campaign with other volunteers, or perhaps use door hangers to leave behind information and hope they follow up.

The biggest thing is to develop a strategy based on what you are working, try to find a couple others to work with you to keep it fun, and get to work!