Thursday, August 25, 2005
FairTax Update
I believe in this concept so much that I feel compelled to write about the subject once again. The FairTax Book was #1 on the New York Times best seller list for two weeks in a row and has now dropped to #2. This is a book about TAXES for crying out loud! What causes a book on such a dry topic as taxes to become #1? People are fed up with the current tax system and are beyond ready for a major change. This is an idea whose time has come.
I went to the local Neal Boortz book signing at Borders and was amazed at the number of people there to get their copy signed. Personally, I had six copies and my friend Shannon had another copy. Everyone to whom I have spoken about this issue has had initial misgivings, but once they learn all of the details about the tax, they become very much in favor of it. This is not surprising to me because I don't see much of a downside to the plan at all.
Arguments I have heard against the FairTax are almost always based on misinformation or misunderstanding of the entire plan. You keep your entire paycheck on paydays, no taxes, no Social Security or Medicare witholding. No IRS reporting anymore. No Corporate Income taxes which will reduce the price of goods and services by roughly 23%, the amount of imbedded taxes present in everything we now buy. This means prices overall will be roughly the same with the sales tax as before with the income taxes imbedded, but now we will be receiving our entire paycheck, no taxes deducted. In addition, to counter the regressive nature of a sales tax, everyone will receive a rebate equal to the cost of the sales tax based on the size of your household, up to the poverty level. This means, effectively, that no one has to pay the sales tax up to poverty level.
Poverty levels are already calculated by the Department of Health and Human Services. It would amount to roughly $478 for a family of four per month. The Federal Government already has a massive bureaucracy for check mailing, or bank account debiting, in the Social Security Administration. This agency would be responsible for mailing checks or debiting accounts. This is one thing they are good at.
This issue is not a partisan issue. It is a common sense issue, period. The purpose of taxes in the first place is to generate revenue for government to pay for services it provides to its' citizens. The purpose should not be to coax people to act in a certain way for economic reasons, ie; tax breaks. This is what our tax code has become. And it needs to end. The FairTax Plan does that.
There is no guarantee that politicians would not try to manipulate the sales tax in a similar fashion as the income tax. It is the duty of all citizens to make sure their representatives act in a manner consistent with our wishes. It always has been this way and a different tax will not change this basic fact. A government not watched is one that will fly out of control eventually. The power inherent in governing is a powerful force and we need to be ever vigilant that it remains in check.
Politicians will not want to lose this power over people's behavior through the income tax code. It is up to us, common, ordinary citizens to scream at our representatives to make sure they hear us and heed what we are saying. The recent Supreme Court decision expanding eminent domain can be an example. Since that atrocious decision people have been voicing their extreme displeasures with their representatives and they have listened. Texas, in fact, has already passed anti-eminent domain laws to counter the Supreme Court ruling. Politicians will listen to us in numbers because it means their jobs and their power. Let them know how you feel. I have.
Find and email your representative here. http://www.house.gov/writerep/
Sign the FairTax Petition here. http://www.fairtaxvolunteer.org/opinion/elec_petition.html
Read all about the proposed legislation here. http://www.faritax.org
This is a true grassroots effort to inform and educate everyone about this new and wonderful plan. I see and hear the masses coming to this idea and I think we CAN change our system. It only takes us to make our politicians hear us and they will listen. They will have to listen. Spread the word.
OH
I went to the local Neal Boortz book signing at Borders and was amazed at the number of people there to get their copy signed. Personally, I had six copies and my friend Shannon had another copy. Everyone to whom I have spoken about this issue has had initial misgivings, but once they learn all of the details about the tax, they become very much in favor of it. This is not surprising to me because I don't see much of a downside to the plan at all.
Arguments I have heard against the FairTax are almost always based on misinformation or misunderstanding of the entire plan. You keep your entire paycheck on paydays, no taxes, no Social Security or Medicare witholding. No IRS reporting anymore. No Corporate Income taxes which will reduce the price of goods and services by roughly 23%, the amount of imbedded taxes present in everything we now buy. This means prices overall will be roughly the same with the sales tax as before with the income taxes imbedded, but now we will be receiving our entire paycheck, no taxes deducted. In addition, to counter the regressive nature of a sales tax, everyone will receive a rebate equal to the cost of the sales tax based on the size of your household, up to the poverty level. This means, effectively, that no one has to pay the sales tax up to poverty level.
Poverty levels are already calculated by the Department of Health and Human Services. It would amount to roughly $478 for a family of four per month. The Federal Government already has a massive bureaucracy for check mailing, or bank account debiting, in the Social Security Administration. This agency would be responsible for mailing checks or debiting accounts. This is one thing they are good at.
This issue is not a partisan issue. It is a common sense issue, period. The purpose of taxes in the first place is to generate revenue for government to pay for services it provides to its' citizens. The purpose should not be to coax people to act in a certain way for economic reasons, ie; tax breaks. This is what our tax code has become. And it needs to end. The FairTax Plan does that.
There is no guarantee that politicians would not try to manipulate the sales tax in a similar fashion as the income tax. It is the duty of all citizens to make sure their representatives act in a manner consistent with our wishes. It always has been this way and a different tax will not change this basic fact. A government not watched is one that will fly out of control eventually. The power inherent in governing is a powerful force and we need to be ever vigilant that it remains in check.
Politicians will not want to lose this power over people's behavior through the income tax code. It is up to us, common, ordinary citizens to scream at our representatives to make sure they hear us and heed what we are saying. The recent Supreme Court decision expanding eminent domain can be an example. Since that atrocious decision people have been voicing their extreme displeasures with their representatives and they have listened. Texas, in fact, has already passed anti-eminent domain laws to counter the Supreme Court ruling. Politicians will listen to us in numbers because it means their jobs and their power. Let them know how you feel. I have.
Find and email your representative here. http://www.house.gov/writerep/
Sign the FairTax Petition here. http://www.fairtaxvolunteer.org/opinion/elec_petition.html
Read all about the proposed legislation here. http://www.faritax.org
This is a true grassroots effort to inform and educate everyone about this new and wonderful plan. I see and hear the masses coming to this idea and I think we CAN change our system. It only takes us to make our politicians hear us and they will listen. They will have to listen. Spread the word.
OH
# posted by OH @ 6:50 PM 
