This editorial is from the Albany Democrat Herald in Albany, OR. This editor has obviously read The FairTax Book and is ready for a change. He brings up a very good point: Why are the Presidential candidates not addressing our flawed income tax system? Now is the time!
Editorial: Why we need a different tax.
The tax-filing season is revving up to its nail-biting conclusion in less than three weeks. So you would think voters would demand that federal candidates, especially for president, speak about their plans for relieving Americans of this annual ordeal.
But the voters don’t ask, and if the candidates have any such plans, they are keeping mum. No one who actually reads the federal tax instructions can believe that sane people wrote the laws on which they are based. Maybe the trouble is that more people don’t read them, which they can avoid doing by filing a simplified return or having their returns done by a pro.
So one idea for reform would be a requirement that every voter read at least the instructions for Form 1040 and pass a test. After all, the voters are responsible for sending to Congress the people who are responsible for the laws — either by writing them or refusing to change them — that form the basis of the instructions.
But that’s assuming that the present system is worth keeping, which plainly it is not. It’s not worth keeping not only because it demands that you file a return and go through all kinds of contortions, in terms of record keeping and computations, in order to meet the requirements of the law. If that doesn’t amount to involuntary servitude, name something that does.
The system also leads to wide discrepancies in what people owe, owing to peculiar circumstances. Savings are required for long-term economic health, but savings are taxed, and so are any earnings from savings. And perhaps worst of all, even though from some people it confiscates enormous sums, overall the federal tax system does not raise nearly enough money to cover the outlays that Congress continues to approve.
We need two things to reset the balance. Even though the idea has not been seriously mentioned in a decade or longer, we need a requirement that government spending be limited to roughly the same as income every year. And we need a tax system that collects the necessary revenue without the need for filing returns.
Whether we call it a sales tax or a value-added tax, or even a “fair tax,” some universal consumption tax like that would fill the bill. (hh)
Thursday, March 27, 2008
Monday, March 24, 2008
EXEMPT FOOD & MEDICINE FROM FAIRTAX? GET REAL!
A FairTax volunteer e-mailed this article - a must-read................................
Why not just exempt food and medicine from the tax? Wouldn’t that be fair and simple?
Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit.
Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.
Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped.
Why not just exempt food and medicine from the tax? Wouldn’t that be fair and simple?
Exempting items by category is neither fair nor simple. Respected economists have shown that the wealthy spend much more on unprepared food, clothing, housing, and medical care than do the poor. Exempting these goods, as many state sales taxes do, actually gives the wealthy a disproportionate benefit.
Also, today these purchases are not exempted from federal taxation. The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.
Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped.
Friday, March 21, 2008
OBAMA NEEDS THE FAIRTAX
I listened to Obama's speech in Oregon today and determined, with the "new social order" he is touting, that he will need the FairTax in order to keep his constituents. Otherwise, everyone will go broke just trying to pay for all his largesse.
He plans to "give" us all health care. Who does he think will be paying for it? WE WILL! Remember, Corporations do not pay taxes - we do, in the form of higher prices. And where in the Constitution does it say "life, liberty and pursuit of health"?
He plans to "give" all students $4,000 (is it per year or per term? I forget) to help with their higher education. Who does he think will be paying for it? WE WILL! Oh sure, the students will be "required" to do community service, but it is still a huge money drain. Let the prison inmates do the community service and let the students work for their education.
He plans to have our troops home by 2009. Who does he think will be suffering for it? WE WILL! With more lives lost when the Al Queda come to our shores.
He plans to "fix" Darfur. Who does he think will be paying for it? WE WILL! Obama will pull our troops out of Iraq and put them right into Darfur, mark my words. It is all a matter of whose war it is. Remember "Wag the Dog"?
I could go on and on, but you get the picture. You don't get something for nothing. Obama is planning to take charge of all of your dollars, not just your tax dollars. He is planning on re-distributing the wealth of this country - not to you, not to me, but to control our every thought and deed. BE AFRAID - BE VERY AFRAID!
NOW LET'S SEE WHAT THE FAIRTAX WOULD DO FOR OBAMA - AND FOR US!
First, health care. With the FairTax, the working people would be able to afford their own health care. After all, they will have 100% of their income to choose the kind of health care they want. The people who don't want health care will not be forced to have it. The poor people who work will have more take-home pay to pay for it. The poor people on welfare will be taken care of with their prebate checks and social services already in place. The older people on Social Security will still be covered by Medicare, low-cost supplemental insurance and prescription drug coverage. That's called Freedom, my friends - Freedom of Choice. If the Government takes your money to spend as "they" see fit, you are no longer free.
Next comes education. Nobody owes you a living. Nobody owes you an education beyond high school. If Obama allows the FairTax, parents can educate their own children without paying a FairTax, which means they will be able to afford to educate their children the way they want to, with 100% of their income. Also, if the students work to help with their education, they will be able to save more money or spend less in student loans. That's called Freedom, my friends - Freedom of Choice. If the Government takes your money to spend as "they" see fit, you are no longer free.
The next two items - The Iraq War and Darfur - have nothing to do with the FairTax. However, it has everything to do with Freedom. We freed the Iraqi's and now we are trying to keep them free long enough to stand on their own two feet. By pulling the rug out from under them (bringing home the troops in 2009), would surely spell defeat for us and defeat for the Iraqis. And would it make us safer? NO! We would have them bombing our malls and our sports stadiums and our schools because by bringing home the troops too soon will bring the enemy right along after them. The troops are fighting for our freedom, my friends - Freedom of Choice.
Saving Darfur sounds very humane - and it is. However, saving Iraq is not? I don't get it. Saddam Houssain tortured and killed his own people, just like what is happening in Darfur. We can't save the whole world. UNLESS - well, I can't help thinking that the FAIRTAX would bring companies back to our shores, bring new money to our shores, bring off-shore money back to our shores, bring JOBS back to our shores. Everyone would prosper from this - not just big business. I have never understood why people are so against big business, when that is where your paycheck is coming from. Why bite the hand that feeds you? Freedom, my Friends - Freedom of Choice.
With the FairTax, you will be free to save, to invest, to educate yourself, to choose the type of health insurance you want, not what the government decides to dole out to you. You will also be free to spend your money how YOU see fit, not how the Government sees fit for you. It's called Freedom, my friends - Freedom of Choice.
He plans to "give" us all health care. Who does he think will be paying for it? WE WILL! Remember, Corporations do not pay taxes - we do, in the form of higher prices. And where in the Constitution does it say "life, liberty and pursuit of health"?
He plans to "give" all students $4,000 (is it per year or per term? I forget) to help with their higher education. Who does he think will be paying for it? WE WILL! Oh sure, the students will be "required" to do community service, but it is still a huge money drain. Let the prison inmates do the community service and let the students work for their education.
He plans to have our troops home by 2009. Who does he think will be suffering for it? WE WILL! With more lives lost when the Al Queda come to our shores.
He plans to "fix" Darfur. Who does he think will be paying for it? WE WILL! Obama will pull our troops out of Iraq and put them right into Darfur, mark my words. It is all a matter of whose war it is. Remember "Wag the Dog"?
I could go on and on, but you get the picture. You don't get something for nothing. Obama is planning to take charge of all of your dollars, not just your tax dollars. He is planning on re-distributing the wealth of this country - not to you, not to me, but to control our every thought and deed. BE AFRAID - BE VERY AFRAID!
NOW LET'S SEE WHAT THE FAIRTAX WOULD DO FOR OBAMA - AND FOR US!
First, health care. With the FairTax, the working people would be able to afford their own health care. After all, they will have 100% of their income to choose the kind of health care they want. The people who don't want health care will not be forced to have it. The poor people who work will have more take-home pay to pay for it. The poor people on welfare will be taken care of with their prebate checks and social services already in place. The older people on Social Security will still be covered by Medicare, low-cost supplemental insurance and prescription drug coverage. That's called Freedom, my friends - Freedom of Choice. If the Government takes your money to spend as "they" see fit, you are no longer free.
Next comes education. Nobody owes you a living. Nobody owes you an education beyond high school. If Obama allows the FairTax, parents can educate their own children without paying a FairTax, which means they will be able to afford to educate their children the way they want to, with 100% of their income. Also, if the students work to help with their education, they will be able to save more money or spend less in student loans. That's called Freedom, my friends - Freedom of Choice. If the Government takes your money to spend as "they" see fit, you are no longer free.
The next two items - The Iraq War and Darfur - have nothing to do with the FairTax. However, it has everything to do with Freedom. We freed the Iraqi's and now we are trying to keep them free long enough to stand on their own two feet. By pulling the rug out from under them (bringing home the troops in 2009), would surely spell defeat for us and defeat for the Iraqis. And would it make us safer? NO! We would have them bombing our malls and our sports stadiums and our schools because by bringing home the troops too soon will bring the enemy right along after them. The troops are fighting for our freedom, my friends - Freedom of Choice.
Saving Darfur sounds very humane - and it is. However, saving Iraq is not? I don't get it. Saddam Houssain tortured and killed his own people, just like what is happening in Darfur. We can't save the whole world. UNLESS - well, I can't help thinking that the FAIRTAX would bring companies back to our shores, bring new money to our shores, bring off-shore money back to our shores, bring JOBS back to our shores. Everyone would prosper from this - not just big business. I have never understood why people are so against big business, when that is where your paycheck is coming from. Why bite the hand that feeds you? Freedom, my Friends - Freedom of Choice.
With the FairTax, you will be free to save, to invest, to educate yourself, to choose the type of health insurance you want, not what the government decides to dole out to you. You will also be free to spend your money how YOU see fit, not how the Government sees fit for you. It's called Freedom, my friends - Freedom of Choice.
Tuesday, March 18, 2008
THIS COMMENT GETS FRONT PAGE TREATMENT
Ashford Schwall has his ducks in a row. He has his priorities straight. I was so impressed with his commentary, I simply had to make sure nobody missed it. Thank you, Mr. Schwall!
Ashford Schwall has left a new comment on your post "WILL THE FAIR TAX CREATE AN UNDERGROUND ECONOMY?":
The underground economy is everything from Wendy Waitress not reporting all of her tips to Mr. Cash Money, the drug dealer. Let’s play a little game. Let’s look at both under the income tax and under the FairTax. We will start with a look into the life Mr. Cash Money under the income tax.
Mr. Cash Money sells “medicinal items” for cash on the street and takes a “commission” from working ladies. He even provides a “protection service”! Do we think Mr. Cash Money files a tax return every year? Any year? Don’t hold your breath.
Poof, now we are in FairTax land. Mr. Cash Money needs a new suit. Nothing used for this guy! Bam, FairTax paid. Mr. Cash Money needs some groceries, Bam, FairTax paid. Mr. Cash Money needs to pay his rent, Bam, FairTax paid. Mr. Cash Money needs to………..you get the picture, Bam, FairTax paid.
Do you think Mr. Cash Money will expose himself to the Gov’t by applying for the prebate? Again, Don’t hold your breath.
Now let’s look at Wendy Waitress under the income tax. She has been good and filed her taxes, just did not report all of her tips. A bad tax plan made a technical criminal out of a good person. She has worked hard but was never able to get ahead. Her overtime is even taxed at a higher rate.
Poof, now we are FairTax land. Wendy applies for and gets the prebate. She now takes all her tips and put them into savings which are no longer taxed. Her overtime is not taxed. She is frugal and buys used items where possible which are not taxed.
She takes a night course which is not taxed. She gets a better job which is not taxed. Now she is able to buy that new car, dress, shoes or whatever she has always wanted, and yes, it is taxed. But so what, thanks to the FairTax, Wendy has been able to get over that hump of sustenance to success.
So in the grand scheme of things…….. No, the Underground Economy would not be a problem. Perhaps taxing “income tax” can not be more fair. Is taxing income the answer? Where is “written” that income must be taxed to fund our collective gov’t needs?
It has been that way since 1913. Prior to that, various excise taxes were used. Why must we tax income? Some how point number two of the “Ten points of communism” found in the Communist Manifesto has become the norm. Why would we want to?
What are we taxing when we tax income? We tax work. We tax prosperity. We tax upward mobility. We tax success. Many economists believe that if you tax something more, you get less of it.
Do we really want less work, less prosperity, less upward mobility, less productivity and less success?
Ashford Schwall
Ashford Schwall has left a new comment on your post "WILL THE FAIR TAX CREATE AN UNDERGROUND ECONOMY?":
The underground economy is everything from Wendy Waitress not reporting all of her tips to Mr. Cash Money, the drug dealer. Let’s play a little game. Let’s look at both under the income tax and under the FairTax. We will start with a look into the life Mr. Cash Money under the income tax.
Mr. Cash Money sells “medicinal items” for cash on the street and takes a “commission” from working ladies. He even provides a “protection service”! Do we think Mr. Cash Money files a tax return every year? Any year? Don’t hold your breath.
Poof, now we are in FairTax land. Mr. Cash Money needs a new suit. Nothing used for this guy! Bam, FairTax paid. Mr. Cash Money needs some groceries, Bam, FairTax paid. Mr. Cash Money needs to pay his rent, Bam, FairTax paid. Mr. Cash Money needs to………..you get the picture, Bam, FairTax paid.
Do you think Mr. Cash Money will expose himself to the Gov’t by applying for the prebate? Again, Don’t hold your breath.
Now let’s look at Wendy Waitress under the income tax. She has been good and filed her taxes, just did not report all of her tips. A bad tax plan made a technical criminal out of a good person. She has worked hard but was never able to get ahead. Her overtime is even taxed at a higher rate.
Poof, now we are FairTax land. Wendy applies for and gets the prebate. She now takes all her tips and put them into savings which are no longer taxed. Her overtime is not taxed. She is frugal and buys used items where possible which are not taxed.
She takes a night course which is not taxed. She gets a better job which is not taxed. Now she is able to buy that new car, dress, shoes or whatever she has always wanted, and yes, it is taxed. But so what, thanks to the FairTax, Wendy has been able to get over that hump of sustenance to success.
So in the grand scheme of things…….. No, the Underground Economy would not be a problem. Perhaps taxing “income tax” can not be more fair. Is taxing income the answer? Where is “written” that income must be taxed to fund our collective gov’t needs?
It has been that way since 1913. Prior to that, various excise taxes were used. Why must we tax income? Some how point number two of the “Ten points of communism” found in the Communist Manifesto has become the norm. Why would we want to?
What are we taxing when we tax income? We tax work. We tax prosperity. We tax upward mobility. We tax success. Many economists believe that if you tax something more, you get less of it.
Do we really want less work, less prosperity, less upward mobility, less productivity and less success?
Ashford Schwall
Friday, March 14, 2008
LEGAL PROSTITUTION - NO! FAIRTAX - YES!
There has been a lot of talk in recent days about Eliot Spitzer, NY Gov., and his "call girl ring". I heard today a journalist on TV saying it was time we made prostitution legal. Can you believe that? He said we could then get them to pay taxes.
How stupid his comment when he can have his cake and eat it too. With the FairTax, he can keep prostitution illegal as it should be and take their tax money anyway, every time they purchase goods or services.
And while we're at it, let's get some tax money out of those other underground businesses. Let the drug dealers help us with our taxes, every time they purchase goods or services.
Let the illegal aliens help us with our taxes, every time they purchase goods or services.
Let the "under-the-table" business dealers help us with our taxes, every time they purchase goods and services.
And how about tapping the tourist industry. We pay their taxes when we visit their country - let them help us with our taxes, every time they purchase our goods or services.
Whenever I receive a plea for money from a congressman or a presidential candidate, I write back (using their stamp, natch) and tell them when they publicly endorse the FairTax, then I will donate money to their campaign. So far, no takers.
Don't you think it's time our Congress quit worrying about their campaigns and started worrying about our economy? All of these points made above can help to relieve our tax burden. Tell Congress to pass the FairTax (HR25 & S1025)
How stupid his comment when he can have his cake and eat it too. With the FairTax, he can keep prostitution illegal as it should be and take their tax money anyway, every time they purchase goods or services.
And while we're at it, let's get some tax money out of those other underground businesses. Let the drug dealers help us with our taxes, every time they purchase goods or services.
Let the illegal aliens help us with our taxes, every time they purchase goods or services.
Let the "under-the-table" business dealers help us with our taxes, every time they purchase goods and services.
And how about tapping the tourist industry. We pay their taxes when we visit their country - let them help us with our taxes, every time they purchase our goods or services.
Whenever I receive a plea for money from a congressman or a presidential candidate, I write back (using their stamp, natch) and tell them when they publicly endorse the FairTax, then I will donate money to their campaign. So far, no takers.
Don't you think it's time our Congress quit worrying about their campaigns and started worrying about our economy? All of these points made above can help to relieve our tax burden. Tell Congress to pass the FairTax (HR25 & S1025)
Monday, March 10, 2008
WE STAND FOR THE FAIRTAX - VOTE FOR IT!
I received an e-mail reminding me that Mike Gravel, the only Democrat Candidate for President who supports the FairTax, is still in the running. You would never know it by watching and listening to the various forms of Media.
For you Democrats out there whose primaries have not yet been held, you still have a chance to promote the FairTax by voting for Mike Gravel. Here are a couple of youtube sites of Mike Gravel selling the FairTax: http://www.youtube.com/watch?v=E3bY_UNCY_I & http://www.youtube.com/watch?v=UAyY_8hDdfY .
To contribute to his campaign, go to his website: http://www.gravel2008.us/.
It is really discouraging, being from Oregon, to have to wait until everything is decided and then the "powers that be" allow us to vote. Our votes counts for nothing, so we might as well use our votes in protest of the system and to let the public know what we stand for.
We stand for the FairTax - Vote for it!
For you Democrats out there whose primaries have not yet been held, you still have a chance to promote the FairTax by voting for Mike Gravel. Here are a couple of youtube sites of Mike Gravel selling the FairTax: http://www.youtube.com/watch?v=E3bY_UNCY_I & http://www.youtube.com/watch?v=UAyY_8hDdfY .
To contribute to his campaign, go to his website: http://www.gravel2008.us/.
It is really discouraging, being from Oregon, to have to wait until everything is decided and then the "powers that be" allow us to vote. Our votes counts for nothing, so we might as well use our votes in protest of the system and to let the public know what we stand for.
We stand for the FairTax - Vote for it!
Thursday, March 6, 2008
LISTEN TO NEAL BOORTZ' WEBINAR TODAY
Sent to me by a FairTax Volunteer:
News/Talk 750 WSB's Neal Boortz is hosting a FREE internet seminar, or Webinar, beginning today, March 6, to explain and answer questions about the FairTax. I just listened to it and it is absolutely EXCELLENT! It is like watching a Powerpoint Presentation with NealBoortz explaining the FairTax.
You can watch/listen to it anytime. It lasts about an hour. I am sending a special e-mail announcement about this WEBINAR out to all of our local FairTax supporters. For more details go to http://wsbradio.com/ads/fairtax_webinar.html or just follow the links from the Home page at www.fairtax.org.
News/Talk 750 WSB's Neal Boortz is hosting a FREE internet seminar, or Webinar, beginning today, March 6, to explain and answer questions about the FairTax. I just listened to it and it is absolutely EXCELLENT! It is like watching a Powerpoint Presentation with NealBoortz explaining the FairTax.
You can watch/listen to it anytime. It lasts about an hour. I am sending a special e-mail announcement about this WEBINAR out to all of our local FairTax supporters. For more details go to http://wsbradio.com/ads/fairtax_webinar.html or just follow the links from the Home page at www.fairtax.org.
Monday, March 3, 2008
FAIRTAX TRULY NON-PARTISAN
Below is a letter from Joshua Pritikin, a FairTax Volunteer AND a Democrat. We need more people like him, who takes the time to check out the facts and is not afraid to go with them. If you would like to receive all of the FairTax correspondence, just sign the FairTax petition at www.fairtax.org and sign up as a FairTax volunteer. Here is his letter:
In response to three letters titled "The FairTax and the $50m jet" on 02 Mar 2008: As a registered Democrat, I was pleased to see other fellow Democrats taking up consideration of the FairTax proposal. I prefer the Democratic position on social issues, but the Republicans are ahead of us on questions of taxation.
I realize this may be difficult to understand. It only became clear to me after running the numbers myself. When it comes to questions of public tax policy, I used to avoid the discussion and stick my head in the ground.
The complexity of the current system is mind numbing. But that is where the advantage of the FairTax shows most vividly. It is simple to understand and explain. I was not surprised that letters in response to Prof. Kotlifoff were negative. After all, the topic is taxation. Some diligent study is required.
Both Mr. Laswick and Mr. Depperman pointed out that a wealthy individual who spends little money would pay little tax. They contrasted this case with a middle class earner who must spend (and be taxed) on all of his income. There are at least three additional points to consider.
Firstly, the hypothetical middle class earner will be better off under the FairTax than he is now. He will pay less tax because the sum of the income tax, social security, and medicare taxes amount to more than the 23% FairTax less the prebate. You can verify this with a calculator.
Secondly, while the wealthy keep money in the bank, that money is lowering the interest rate on your mortgage.
Thirdly, this year or next year, the wealthy can afford to buy a new house, new yacht, or new airplane and the prebate is a vanishing offset against a 23% tax on millions of dollars.
Give the FairTax a fair chance. Dust the cobwebs off your calculator. Run the numbers yourself. It is not as difficult as you might expect.--
Make April 15 just another day, visit http://fairtax.org
In response to three letters titled "The FairTax and the $50m jet" on 02 Mar 2008: As a registered Democrat, I was pleased to see other fellow Democrats taking up consideration of the FairTax proposal. I prefer the Democratic position on social issues, but the Republicans are ahead of us on questions of taxation.
I realize this may be difficult to understand. It only became clear to me after running the numbers myself. When it comes to questions of public tax policy, I used to avoid the discussion and stick my head in the ground.
The complexity of the current system is mind numbing. But that is where the advantage of the FairTax shows most vividly. It is simple to understand and explain. I was not surprised that letters in response to Prof. Kotlifoff were negative. After all, the topic is taxation. Some diligent study is required.
Both Mr. Laswick and Mr. Depperman pointed out that a wealthy individual who spends little money would pay little tax. They contrasted this case with a middle class earner who must spend (and be taxed) on all of his income. There are at least three additional points to consider.
Firstly, the hypothetical middle class earner will be better off under the FairTax than he is now. He will pay less tax because the sum of the income tax, social security, and medicare taxes amount to more than the 23% FairTax less the prebate. You can verify this with a calculator.
Secondly, while the wealthy keep money in the bank, that money is lowering the interest rate on your mortgage.
Thirdly, this year or next year, the wealthy can afford to buy a new house, new yacht, or new airplane and the prebate is a vanishing offset against a 23% tax on millions of dollars.
Give the FairTax a fair chance. Dust the cobwebs off your calculator. Run the numbers yourself. It is not as difficult as you might expect.--
Make April 15 just another day, visit http://fairtax.org
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