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Fair Tax Perfect Storm
By Tyson Wynn | October 7, 2008 | Print This Post
Methinks the current state of financial affairs in this nation (not to mention the world) could be the perfect storm we need to get some genuine consideration, and hopefully passage, of the Fair Tax.
Here are a few reasons. They dovetail well with these.
- The Fair Tax is a huge, great big, fat, enormous shift of power away from Congress (the folks who made this current mess possible and probable). Congress uses its tax power to pick winners and losers (contrary to nature). Successful people tend to be successful because they worked hard, invested some effort and sweat, beat out the competition, and got somewhere. Thus, when a successful person buys a house, they tend to buy one they can afford based upon the credit history they have established. Then, the all-seeing eye of government looks out across the landscape and says, “Wouldn’t it be nice if everyone could enjoy success like these successful people. I know, let’s make sure everyone can have a nice, big house.” Then the Congress enacts drivel like the Community Reinvestment Act and then brags about how many people are now homeowners. When Congress picks winners, they often end up losers. When the Fair Tax shifts all that power away from Congress, we’ll have less of this kind of thing to deal with (we can’t eliminate it altogether if Congress remains in session at all).
- Putting all those withholdings back in American workers’ pockets will be a huge, authentic boost to the economy. I say authentic because the “economic stimulus” check fiasco was a bogus attempt to inject borrowed money into the economy via tax “refunds” to some persons who never paid taxes in the first place. That’s wealth redistribution. Allowing people to keep their own, hard-earned money will motivate investment and savings.
- Making the tax and compliance system simpler and fairer encourages employment. I’d say we could use it.
- No capital gains taxes make investing in that stock market very, very attractive. I’d say it could use it.
- America will become the tax haven of the world. With no corporate or individual income taxes, America will attract investment from all over the world. American companies that have shifted part/all of their operations outside our borders for tax reasons will have the opportunity and motivation to bring their businesses back home, employ Americans, and inject serious capital back into the American economy.
- Thousands (maybe millions?) will be added to the tax-paying base. Currently, the government is increasingly shifting the tax burden to a smaller and smaller group of persons; therefore, their share gets larger and larger. At some point this becomes unsustainable and Atlas will shrug. The better and fairer Fair Tax taxes what we buy new rather than what we earn, so it broadens the tax base out in a huge way. It is intrinsically more fair. Those who currently avoid their fair share of taxes by creative bookkeeping, doing cash business, and just being cheats have no way of escape — if they choose to make purchases of new retail items. Imagine, all the illegal immigrants, hookers, strippers, drug dealers, gamblers, etc., will become taxpayers. The broader we share the burden, the cheaper each person’s share gets.
- All the lobbying that occurs to curry favors in the tax code goes away.
- All the payback to corrupt politicians who provide favors in the tax code goes away.
- The tax code goes away.
I could go on, but I will leave it there for tonight. All I know is that the economy is in a downturn, and Obama’s tax increases will doom us to depression. How I long for McCain to get on the stump and say that in light of the current economic turmoil in America, he and Sarah Palin have closely evaluated the Fair Tax and plan to make it their top priority (behind national security) when elected. I predict a landslide. Unfortunately, McCain isn’t yet on board, and as you can see here, the Fair Tax is phenomenally better than McCain or Obama’s plans.
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By the way, DO NOT, I repeat, DO NOT leave comments here that are full of the typical lies about the Fair Tax. As a general rule, if you haven’t read and understood the Fair Tax book, your opinion means very little to me.
Topics: Barack Obama, Disasters, Fair Tax, John McCain, My 2¢, Politics, Sarah Palin, Taxes |
October 7th, 2008 at 5:58 am
Amen. And for doubters, I might suggest, also, Fair Tax: The Truth: Answering the Critics.
October 8th, 2008 at 7:18 pm
My only concern with the Fair Tax is the 16th amendment. We will be getting hit with a national sales tax and a Federal Income Tax until that 16th amendment is repealed. Don’t for a minute think that Congress is going to give up the Federal Income Tax just because they pass the Fair Tax. Just my two-cents. I realize the proponents of the Fair Tax say that they will sunset the Fair Tax in five years if the 16th amendment doesn’t get repealed but that’s five years of double taxation. It has to be accomplished at the same time or the people that actually pay their taxes now will get hit twice as hard.
Like I said. Just my opinion. I don’t trust our Federal Government or any representative thereof to do what they say.
So, either some form of Federal Income Tax Abatement plan needs to be put in place during the advent of the Fair Tax or the 16th amendment must be repealed simultaneously with the Fair Tax.
October 8th, 2008 at 9:51 pm
Brian,
Your points are good ones, and I should state for the record: I am only in favor of the Fair Tax plan that includes repealing the 16th Amendment (or a binding means of income tax suspension).
October 10th, 2008 at 8:59 am
Thanks for the response Tyson. I agree that your points about the shift of power in a Fair Tax arrangement. That’s why I fear it will never come to pass.
BTW. I loved the YouTube find you had of the “African-American” Republican as a spokesperson for conservatism. He does a better job of it than McCain does.
October 10th, 2008 at 10:19 am
Brian, is that really saying all that much?
October 11th, 2008 at 12:23 am
Touche. A horse’s ass could do a better job of being conservatism’s spokesman than McCain…and that’s really strange because I always thought of McCain as a horse’s ass.