Presidential Tax Plans

An article written in the Augusta Chronicle shortly after last months elections. I found it on www.FairTax.org. Those of you that have questions regarding recent bailout legislation might find this a much better option...Put the power of government back in the people's hands.

The definition of fair


Sunday, November 16, 2008
By: Augusta Chronicle Editorial Staff

Hopefully election results won't kill national sales tax movement

Democrats have won both the executive and legislative branches of government. They will pursue a vastly different national agenda in the next four years.

Sadly, that risks putting several important agenda items on the back burner. One of them is the Fair Tax.

A proposed 23-cent national sales tax, the Fair Tax would replace the current federal system of taxation -- meaning no income tax and no Social Security tax.

That means power to the people, because, first of all, they get their entire paycheck. Secondly, they determine the amount of tax they pay by the decisions they make on their purchases.

The Fair Tax also contains a feature called a "prebate" -- money that would wipe out federal taxes completely for those at or below the poverty line.

Ironically, even as Democrats who have not quite warmed up to the idea are set to take control of both Congress and the White House, a new benefit of the Fair Tax has arrived: If taxpayers received more of their paycheck in take-home pay, they would be more equipped to make their mortgage payments. So perhaps fewer Americans would be losing their homes to foreclosure.

That's just one example of what the Fair Tax could do by empowering people to have more control over more of their money.

And just imagine how much more luminous and fragrant the spring would be if you didn't have wrestle the IRS every April! And guess what that wrestling match costs Americans every year: $265 billion in tax preparation costs.

That alone is cause for dumping tea in Boston Harbor.

It's too bad that some have demagogued the Fair Tax, especially at election time. It's not a tax increase; it's tax reform of the best kind, because it shifts power from Washington to the people.

The Fair Tax is so-called because it brings the underground economy into the light, and closes the many loopholes the powerful exploit to avoid taxation. Moreover, experts predict it will prompt offshore assets to flow back to the United States. Why? Because they would no longer need to hide from the long nose of the IRS.

Philosophically it's a winner, too, because it shifts taxation from industriousness and production to consumption. Such a reward of hard work and investment would be just the thing a struggling economy such as ours could really use.

Talk about a stimulus package! And this stimulus wouldn't cost money.

It's an awful shame that such a partisan shroud has fallen down around the Fair Tax. On Nov. 16, at the Gwinnett Center in Duluth, there will be a Fair Tax "Truth" rally to clear up some of the lies and distortions about the Fair Tax featuring GOP presidential candidate Mike Huckabee, nationally syndicated radio host Neil Boortz and U.S. Senator Saxby Chambliss as guest speakers, among others.

This isn't a Republican or Democratic idea. Fact is, it's a grass-roots movement that has been catching steam in recent years. What a tragedy it would be if Nov. 4 were to sap the energy out of the movement.

We can't let that happen, and certainly not now. The Fair Tax has too much potential to lift the economy out of the doldrums, stimulate manufacturing and labor, and keep people in their homes.

Neither is this a matter of impulsiveness. The Fair Tax has been debated, researched and vetted by prominent and knowledgeable economists, business people and other leaders. It's a system that would work, because it would once again allow American wage earners to keep what they earn and spend it as they see fit.

That's smart. That leads to prosperity.

And it's the definition of fair.

Original piece posted at http://chronicle.augusta.com/stories/111608/edi_483652.shtml

A short message on Neal's news:

A FAIRTAX TALE ....

I have a little scenario I would like to paint for those of you out there who just insist on finding something wrong with the FairTax. Admittedly, the FairTax isn't perfect. No tax plan is. How, after all, can you come up with a perfect way for a government to take its operating funds from its subjects? If you know an easier and more equitable way to do it, by all means, let me know!

I'm going to ask you to crank up your imagination for a moment here ... and by "you," I mean those of you who think that this FairTax thing is a bad idea and you're not prepared to come on board.

I want you to imagine a scenario. Don't worry about whether or not this scenario is possible .. Just accept it as I present it, and then consider the alternative picture I'm going to also present. Simple as that.

Let's imagine that the FairTax is the law. We've been operating under the FairTax since the day you drew your first paycheck. It's all you know. Here is your imaginarily "reality."

• On every payday you get your complete paycheck. There are no deductions. If you earn $2,000 per week, you get a check for $4,000 every two weeks.
• You never have to save receipts or create any records pertaining to federal taxes.
• You can invest money without paying any taxes on it.
• You don't have to pay taxes on the money you earn through your investment portfolio.
• You pay no taxes on any money you put in your savings account.
• When you die you get to leave your entire estate, everything you own, to whomever you wish. The federal government will take no taxes from your estate. Your death is not a taxable event.
• When you go to the store to buy an item, and the price tag says $19.99, you will had a $20 bill to the cashier and get one penny back. The price tag is the price.
• There are four people in your household. You, your spouse and two rug rats. At the beginning of every month you get a check or a credit to your checking or charge card account in the amount of $506.00 to compensate you for the federal sales taxes that are included in the price of everything you buy; right up to the poverty level.

All in all .. not such a bad deal. You keep all of the money you earn and you get five hundred bucks a month from the feds. Plus .. you only pay taxes when you spend money.

Now .. .here comes some politician who has a grand scheme for a new tax system. He wants to explain it to you. Here's his great idea ..... give him a listen and tell us what you think.

The plan is simple. First the federal sales tax is going to be removed from the price of everything you buy. This will mean that everything will cost 23% less than it does now. But ... he's going to levy an income tax on every single individual and business who plays any role at all in bringing those products to the marketplace. These people and companies are all going to pass the cost of these taxes down the economic line to the final consumer of the products they manufacture. These taxes will end up embedded into the prices of products in our retail marketplace, bringing those prices right up to the current level. So .. no loss, no gain.

Next your political benefactor is going to take away your $500 per month prebate from the government. In its place he's going to tax every penny you earn. It doesn't matter where the money comes from. Your salary, your investment income, winnings at the track ... whatever you earn and however you earn it, it's going to be taxed.

Wait! He's not through. He's also going to tax your wages for Social Security and Medicare. He's going to try to soften the blow by telling you that your employer is going to match the taxes he takes out of your paycheck, but you're employer has made it clear that this money is all going to come out of the money he has budgeted to hire you. You'll probably lose out on your next raise while the boss his accounting in order.

There are some more nifty ideas in your congressman's tax reform plan. When you die your family is going to have to file a complicated estate tax return. A huge amount of the wealth you have managed to build during your life is going to be sent to the government. Your survivors may well have to sell the family business in order to come up with the money to pay for these death taxes.

One more thing .. you're going to have to keep records of all of your financial transactions. Every year you're going to have to spend no less than about 30 hours or spend hundreds of dollars to hire someone to fill out tax forms for you. If mistakes are made you will be hit with a huge penalty and interest. Oh .. and the government is going to have access to all of your financial records to make sure that you are paying everything you "owe."

The question, of course, is why does this politician want to change the tax system in this way? Power, that's why. They want to be able to enact little changes to the tax code that will benefit certain constituents ... which constituents will then benefit the politicians -- with money or with votes. Under the FairTax system these politicians have no power to favor one group of voters over another for the benefit of votes. The new system would give them that power.

Your choice, my friends. If we had the FairTax now ... would you be willing to make the switch?