Posted by
Adam on Monday, October 08, 2007 4:21:15 PM
Are you familiar with the FairTax? Are you familiar with our current tax system? Are you aware that the three front-running Republican presidential nominees (Guiliani, Romney, Thompson) along with every Democrat presidential nominee (except Mike Gravel) are against the FairTax? Well, in this blog I'm going to give you some facts about taxes and why we as the voters need to stand up for the cause and elect leaders who want to better the economy and the American lifestyle. We don't need a big-government Democrat
or Republican in the White House or in any other political position for that matter. The people we elect are our servants, we hired them and we can choose to fire them (every 2 to 4 years), and if they aren't serving us properly we need to get some backbones and make sure they understand what we believe in or we need to get them out of office! If you had a maid on your personal household staff and she didn't do anything, just sat around watching TV on your bill doing what she wants to do, you wouldn't continue to pay her to keep her on staff would you? You need to start thinking about politicians the same way!
Current Tax SystemOur current tax system, mandated by the IRS, takes money from you directly from your paycheck before you even see it. The percentage varies depending on a number of factors but it's safe to say they'll take around 23% or so. Next time you get your paycheck look at the stub and see your Gross Pay amount. That's what you earned, the amount of your paycheck is your Net Pay - or the amount of money left over after the government has had its way with your source of income. Then the money the government takes is used for various things. Now when you ask most politicians where this money goes, they'll tell you it goes for things like road construction, law and order, public service positions like police and EMS, waste management, school funding, and public utilities. All of this is true to some extent, but that money also goes for things like Health Care programs, Welfare and unemployment pay outs, drug/alcohol programs, arts/museum funding, business subsidies, and many other small unnecessary programs and institutions. The people that are paying these taxes are legal US citizens who have valid jobs (not illegitimate jobs like drug dealers and prostitutes, who get paid under the table, so to speak). The millions of illegal aliens in this country are taking from our government by using our roads to drive on, throwing away their garbage using our waste disposal services, being protected by our law enforcement, taking free education for their children at our public schools, enjoying our many outdoor parks and free public attractions, and many other things too. These same illegal aliens are making money at factories and getting paid under the table and never putting a dime back into this country. And of course there's the millions of the unemployed who get paychecks from you via taxes. You're just such a generous person, you're willing to work that extra 10 hours overtime every week so some of our fellow American friends can lay at their home and relax their perfectly-capable bodies Monday through Friday. Oh and of course there's our friends who are on Welfare and do have themselves some jobs. Maybe they're on Welfare because they are only able to schedule 2 days a week at their fast food job, or maybe it's because their job simply does not pay enough per hour, but that doesn't matter because what they can't bring home for themselves will be given to them by you, the taxpayer. After all, it is your fault that they're having career difficulties. While
you were in college working hard to get a degree or working hard at a factory job until you made your way up to department manager, they were
struggling with their teenage pregnancy, their drug problem, their trouble with the law. So much of your tax money goes to unnecessary programs and causes it'll make you sick if you think about how much of your money has been thrown away, so it's best not to think about it, let's move on.
The FairTax ProposalThe FairTax is a different type of tax, it wouldn't be pulled from your income before you get your paycheck, no, you would actually receive every penny of your gross income! How will the government take it's share of money you ask? In the FairTax plan, income comes through a consumption tax. This means the government will take it's money by taxing items you buy. Now most states do have a sales tax, this would work the same way, instead of 5% sales tax it would be more like 23% tax. Now after seeing that, you may be saying "are you insane! Taxes that high are perverse!" but if you do the simple math and think logically for a second you'll realize this is a great deal! Right now, about 23% of your entire paycheck is being taken. So in other words - the government looks at your entire sum of money and takes 23%. With the FairTax, the government looks at whatever YOU SPEND as 100%. So if you only spend half of your weekly paycheck, only half of the paycheck gets taxed at 23% instead of 100% like it currently does! These high taxes do not apply to money going towards education or your savings which is great news for people paying off college loans since they can now easily put down that additional 23% towards the loan payment each month. Now for the icing on the cake: each state has a set number that is the official Poverty Level, probably around $13,000 for a married couple.
Nobody pays taxes on any goods or services up to the poverty level. So technically speaking, if you spend less than $13,000 in a year, you'll never pay taxes. How is this regulated if it's a consumption tax, how will the government know how much you buy? They won't have to. The government declares what the poverty level would be for your set circumstances, then they tax 23% of that number (the tax) and divide it into equal monthly payments that would go to each American with a Social Security card. So a married couple would probably get around $250 a month with this 'prebate' system. People who spend, say $40,000, will pay taxes on every dollar over $13,000, but those in poverty (who aren't even making $13,000 and therefore not spending $13,000) will never pay taxes. This will also generate revenue from sources that were previously neglected: under-the-table workers, undocumented illegal aliens, illegitimate-job holders, etc.
The EconomyEven though you'll save money, the economy will not suffer, think of what people will do with all of that extra money they have. They'll be able to save up that extra cash for a few weeks and use it for a down payment on that new car or house they've been wanting for a long time - the car market and real estate markets will boom as will the stock market. With all the extra money people will have, they can afford to put it into the stock market and make that investment again boosting the economy.
You need to learn more about the FairTax before you attempt to debate it with others or before you write your congressman. To learn more, here are the two best sources, I recommend using both of them:
The FairTax Book by Neil Boortz and John Linder
and
www.fairtax.orgThanks for reading, if you have any questions or comments please ask and I'll be happy to answer questions, clarify explanations, or debate you if you disagree with me. Also, sorry about the length, I try to keep them short and sweet, but I have too much to say!