I recently got back from my long vacation. It was great. I was able to relax and spend some quality time with the family. I did not do any work while on vacation for the first time in years! I decided to get a book I had wanted to read instead. I read through Glenn Beck's 'Common Sense' pretty quickly and went out and picked up Neil Boortz's 'Somebody Has to Say It.' I really enjoyed both books. When I returned I bought Neil Boortz's two other books about the Fair Tax. I have read the first, but I am only part way through the second (well, work is picking up again). I have become a supporter of the Fair Tax. From what I have read (and researched...I don't tend to believe only one side), it could prove to put the buying power back into the hands of the people.
While I suggest you do your own research on the subject before you make up your own mind, I hope to get you at least interested enough to do just that.
The Fair Tax is a consumption tax (not a sales tax). It would be a 23% tax on all goods and services which would be paid by everyone (including the government). 23%?!?! Are you kidding me? That would kill us, you say? Well, before this would happen they would do away with all other FEDERAL taxes. No more IRS, no more April 15th tax filings, no more capitol gains taxes, no more death tax, no more retirement account taxes, etc. This would not, however, affect state taxes unless they took it upon themselves to change it. Just imagine for a second if you received the money in your check the federal government takes from your check every pay period? "But," you say, "what about Social Security and Medicare? Those are a huge part of my paycheck too." That's the beauty of this plan. No more Social Security or Medicare taxes either!
The 23% was determined by economists to cover all federal taxes coming in, including Social Security and Medicare. The taxes only count on new purchases, so a new car...taxed. A used car...not taxed. Each item is only to be taxed once. Also, the tax is only levied at the retail level. This means businesses will not be adding additional costs into their product; we will only see the final 23% added onto our price. Our tax structure is out of date, if it was ever in date, and needs reform. Why not take the power out of the hands of lobbyists and put it back with whom it rightfully belongs, the American people.
The larger paycheck allows us the opportunity to save more for the future and put the capitalist ideal back in play. How would we create competition again? Right now off shore banks are a tax haven for businesses that are trying to stay competitive with world markets. Our current tax structure doesn't allow them to lower their prices enough to beat the prices of overseas businesses. An example from Mr. Boortz's book revolves around car sales. A Mercedes can sell for less than a Cadillac in the US because our tax structure doesn't effect the German car company as heavily as in does General Motors. The Fair Tax would make the US a tax haven, rather than the off shore banks being that tax shelter. Businesses would flock back to the US. Not only that, but to compete here, businesses from other countries would have to set up shop here as well. Boy, that sounds like a lot of job creation! And, as we all know from the law of supply and demand, as the number of people working rises, so will pay. As we find more money in our pockets, sales go up, the economy grows exponentially, and we become the most power nation financially once again.
The creators of the Fair Tax don't want this tax to cripple anyone, so they also proposed a "prebate." It would be a predermined, based on income, beginning of the year payemnt to help offset the cost of "basic necessities." A check would be cut for every head of household based on income and occupants in the home. It would also be based on the poverty line and help families buy the goods required for basic living. Otherwise, you are free to spend and save your money as you please! Sounds good to me! I think I know how my money should be spent, and I'm damn sure I know better than soemone who has never met me or my family.
This across the board tax is not without problems. The legislative branch would still have the ability to raise the percentage rate, but that only means we have to stay vigilant when it comes to our elected officials (which might not be such a bad thing). Spending would also still be an issue. As I mentioned before, the 23% would only equal the current amount coming in. Spending is still out of control, so that would still need to be addressed, but one problem at a time.
This is not everything by a long shot, but I hope this has peaked your interest enough so that you will research it yourself. If you like what what see, please contact your congressmen and senators and urge them to support the Fair Tax. You can read 'The Fair Tax' or go to www.fairtax.org and get what you need.
Take action! As the baby boomers retire government programs will start to fail. As more and more businesses leave, fewer and fewer individuals will be left holding a bill that will crush us all. If you don't agree with the Fair Tax, then find something else to hang you hat on. Just do something before it's too late.
