An excellent picture of what is going on today with politicians and taxes, submitted by a FairTax Volunteer:
POLITICIANS ONLY GIVE LIP SERVICE TO TAX REFORM
“There you go again.” At a recent presidential debate, this statement made famous by Ronald Reagan, should have been directed to both Senator Obama and Senator Clinton when each of them spoke of changing the tax code to penalize some groups and give relief to others. Both were campaigning on the promise of unifying Americans and changing the way business is done in Washington DC. As far as promoting unity, using changes in the tax code to favor one voting bloc while punishing another is a divisive tactic which has long been a staple policy of the Washington DC establishment. Thus, in one breath they champion unity and change and in their next they propose doing business the same old way. Witness the fact that our congresses have made some 16,000 changes in the tax code in the last 24 years! These changes have simply been a “carrot and stick” approach by republican and democratic legislators to win votes and increase their power to control their constituents. Obama and McCain have proven themselves by their own proposals, viz. change the tax code, to be part of the same old approach to solving America’s problems. If they were sincere they would promote the passage of the FairTax bill. This would unify Americans under a system that would eliminate income taxes and the 16th amendment. This system would fund the government at its current or higher level and be simple, transparent, and fair to every American. We need to demand that all of our candidates and congressmen first educate themselves and their constituents on the FairTax bill and then take a stand on it. All of our legislators need to make a fair and truthful evaluation of the FairTax Bill and stop giving only lip service to tax reform.
Imagine what a boost the American economy would experience if taxpayers were handed a virtual $400-billion-per-year tax cut! This amount of extra money in our pockets would work to grow the economy. Further imagine that even with this virtual tax cut, the government would continue to be funded at its current level. The treasury would merely have to collect federal taxes by a simpler, more transparent, and fairer system than that of our current tax code. The Fair Tax bills before Congress would replace the IRS with just such a system.
To look at the money spent just to comply with the current tax code from the point of view of its purchasing power, I will quote the report of President Bush’s Advisory Panel on Federal Tax Reform published in late 2005. The report states that the money spent by Americans filling out their tax forms would fund “the Department of Homeland Security, the Department of State, NASA, the Department of Housing and Urban Development, the Environmental Protection Agency, the Department of Transportation, the United States Congress, our federal courts, and all of the federal government’s foreign aid.”
This same advisory panel noted that widespread noncompliance costs each honest taxpayer an extra $2000 in taxes yearly. It further notes that due to the arbitrariness of the code increasing your income by 50% can increase your tax burden by 140%. It shows that marginal income tax rates can now rise over 30% for a family earning just $30,000 per year. That’s does not include the 15% payroll tax. A 45% marginal rate on a $30,000 yearly income is happening today! This comes straight from the advisory panel experts. Who in his right mind can prefer the current system to the 23% Fair Tax?
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2 comments:
Who in his right mind thinks you can collect 800 billion dollars FROM the government in a sales tax?
Who in his right mind thinks you can tax new homes 23% -- and new home sales won't fall off?
WHo in his right mind thinks the poor can pay the world's highest sales taxes -- and that the 200 dollar a month (at most) prebate is going to do take care of that?
WHo in his right mind thinks this is the answer for the horrible tax system we have now?
Who in his right mind thinks the parents of a child with leukemia should have federal tax liabilities of 100,000 dollars, ONLY because they spend money to keep their child alive?
WHo in his right mind thinks the parents of a child who has a cough that clears up on its own, should have no tax liability -- but the parents of a child whose cough is caused by leukemia, should pay 100-200K in federal taxes?
Where do you find such people?
I wanna know.
So the logic behind putting 100-200K taxes on the parents of a leukemis victim is what? Can you fill in that blank?
Oh -- does it have something to do with --"Well, they would have had to pay that before anyway"
Hey -- nonsense. Nonsense 100 ways to Sunday. First, the kid in this example didn't HAVE leukemia before.
Second, is that the new logic behind who to tax? What they supposedly would have had to pay BEFORE -- they pay NOW? Where is that school of economis lesson?
THird -- the cost of the cancer care can only come down, NOT from the Fairtax, but if 100 million American wage earners take a 30% cut in pay.
Cause this whole "prices will come down" logic is beyond comprehension. You are going to ADD the highest sales tax on EARTH -- and the cost will come down? Huh huh?
Well the cost falling nonsense comes from the bizarre HOPE that all workers will take a 30% pay cut. Yeah, like that might happen.
SO the parents of the leukemia victim will have to pay 100K in sales taxes.
Lets say Fairtax gets its wish -- and 100 million AMerican workers take a 30% cut in pay, so the price of cancer care comes down.
Here is a clue - the kids parents STILL have to pay the 100K tax.
Hello. Let me repeat that. The kid's parents still have to pay the 100K in tax.
And they should pay that WHY???
Do you see any problem with that -- at all? Do you see any problem with parents who only make 40K a year, paying 100K in sales tax?
Do you think -- oh I don't know -- maybe they will -- oh I don't know -- SAY something? LIKE -- HELL NO I wont pay 100K tax on this.
DO you think millions of sick people are just going to roll over and cough up billions of dollars for Fairtax " logic"?
And you call the present system insane?
I got news for you. As bogus as our present system is, as unfair, as horrible as it it -- its not certifiably insane. It has that going for it.
We need a new tax code, We don't need insanity stamped on a bumper sticker, which tries to pass itself off as Fair, or logical.
If you want to see what the Tax Advisory Panel thinks of the FairTax, read Chapter 9 of their report. It's available on the internet and it ain't pretty.
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