Fair Tax Part 3

I know that it's been about a week since I wrote the last entry, and I mean to do better, but well, my life interfers sometimes.

I want to go back a little bit, and talk some more about the 'prebates' that every registered household will get. I previously said that these would be issued up to the Fed. Poverty Levels. What that means, is that if you are the Head of the Household, and you are the only member of that household, you would get a check, up to the amount of taxes you would be expected to spend on the essentials of living, for the first $10, 830 of your income. It would be the same amount if you made less, but it would also be the same if you made more. If you are a family of 4, you would get a check up to the amount of taxes up to $22,050. Now, I don't presume to know how much would be alloted for each person as far as the prebate goes, but that would be decided by a group of people all trusted to make that decision. And, like I said before, if you bought anything used, there will be no tax added to it, except for state and local. But I, and all of us that believe in this tax, also believe that the states, and even the local munincipalities would adopt this system of taxing as soon as they saw how well it worked, and it WILL work. All of the tax collected from purchases, whether groceries, gas, or gold watches, will be a visible tax, just like state and local taxes are now--it will be right on the reciept, where you can see it every time. Now, the taxes that you are mostly paying are invisible, or buried in the price. And we have one of the highest costs of doing business in the world. The Fair Tax would amount to 22%-23%, but you are now paying at least 20% in hidden taxes, and those would all go away. If you are a business owner, or a farmer, the costs of items that you purchase for that business or farm will not be taxed. For the rest of us, I sure would never have the income, or the credit to buy a new house anyway, but it might make a big difference if I knew that any previously owned house would have no tax added. How long do you think the Real Estate market would be suffering, if everyone even remotely considering the purchase of a house suddenly knew that the federal tax was completely gone? I tend to think that a lot of those companies showing homes might have to do some of their own hiring.

Speaking of hiring, since any number of American companies have moved their Headquarters off shore, or to another country, not because of labor costs, but because of the crippling tax base, and how that, in itself, will not allow them to hire the workers they need, how long do you think it would take them to beat a trail back home? And since the Fair Tax would make us the most corporation friendly nation on the planet, and since no place is farther away than a day or so, the studies done by the Rand Corporation showed that overseas corporations would build their headquarters in the U.S.A. just as fast as they could find land, and start hiring. That's why I said that a person would have to hide not to have a good job, even the K Street lawyers and lobbiests.    And  the  former IRS agents would probably have all of the Accounting jobs that they could ever want, because someone would still have to do the collecting of the Fair Tax from the corporations, and transmitting those remmitances to the Federal Government, after all. LOL   And that's all that tax people would do, too...transfer the Fair Tax from point 'A' to point 'B', and all the things inbetween, like compliance issues. But those compliance issues would not employ fourteen lawyers and 37 accountants, or whatever the mega-corporations are using now, just to make sure that they ARE in compliance. In 2007, the Exxon-Mobil Corp. paid $30 BILLION in taxes on their profit of  $40.6 billion, and in 2006 they paid $28 billion on profits of $39.5 billion. These are the latest figures available. Now, you hear all the time about the $40 billion profits, but do you hear that $30 billion came OUT  of that profit to pay taxes? Probably not, since the 'dinosaur media' never talks about that. I mean, how angry at the mega-corps would you be if you knew what they really made in profit after their taxes were taken out? And how long would you keep letting the Government milk you for more and more taxes, if you knew what the mega-corps were actually paying? 

But where will the government get the money they need to keep us safe and perform the other functions ALLOWED to them by the Constitution? From discretionary spending. From the new cars that those able will still buy, and the new houses that new millionaires from the Power Ball will still buy, and the mink coats, gold watches, diamond rings, and Lear Jets that those able to will STILL buy, just because they can, and want to. And maybe a few small business owners, no longer taxed to the extent they are now, might become some of those millionaires. And here is another reason to pass the Fair Tax--illegal aliens working under the table, and drug dealers. No matter how you feel about drugs, I think everyone thinks that they should pay taxes equal to the rest of us, right? And do you think you would see a drug king pin driving a 10, or even a 2 year old Buick? They will buy their Cadillac, or BMW, and it will be new, thus paying the tax. Now, maybe that part is wishful thinking, but they will at least pay the taxes on the things that the rest of us do. And folks who rail against those things like Lear Jets, or private yachts,fail to consider all of the people employed by those companies. Do you think that magicians just pull the sheet off and they appear? Not hardly, and you can check the numbers of people laid off right now, because that discretionary spending is down so much. Full employment in America is normally 5%. How would it be if we really had full employment, at 1% or 2%? Sound good to all you unemployed folks?  Sounds good to me.

I hope that I have answered some of your questions, or tossed out some of the misconceptions about the Fair Tax. A lot of politicians don't like it, even knowing that it would do amazing things for this Country, because it removes most of their power, the power to tax, at the point of a gun, in truth. But the one thing they would hate to lose more than that power, is their office, so call and write, e-mail, anything and everything, but get a hold of your Representatives, and Senators, and tell them to vote for the Fair Tax, and do it soon. Thank you, and good night. Totally different subject next time, I promise.

Fair Tax, part 2

Good Evening folks. Back to business...I was discussing the Fair Tax, About the IRS...they are in the process of hiring another 2,000 Investigators. Do you really expect them to just sit around the office? No, Obama wants the IRS to go after everyone possible, so I hope there are absolutely no questions about your tax filing this year, because they are going to come after everyone they can. Not just the "Fat Cats" or the mega-corporations, but everyone possible. Let's face it--Obama is going to have to pay the interest at least on all of the money that other countries and wealthy investors have loaned us. The last figure I saw was that the interest was currently 65 billion a year!! A year! If the Fair Tax were to be passed, and the IRS were to go away, would you really mind all that much? Please. And the K Street lawyers will also be looking for a job, or at least a bunch of them will. A few might be good enough consultants to stay employed by a Congressperson. But trust me when I say that they wouldn't be out of work for long, since so many new companies would be moving here form other countries, and they will more than likely be hiring several lawyers each. Just the way it works. Again, the Fair Tax will remove all Federal income taxes, including the payroll tax, which everone with a job pays, even if they end up paying no income tax, because they get it all back.All self-employment tax, corporate taxes, personal taxes,gift,estate, capital gains tax, & alternative minimum tax. You would keep 100% of your paycheck, except any state income tax, which is usually pretty low, unless you live in New York, California, and the other places that have outrageous state taxes on everything.By ending corporate taxes and compliance costs, which are buried in the price, that price will almost immediately drop because of competition, which has driven the economy of this, the greatest Nation, since our inception. The Fair Tax fully funds the federal government, and fulfills the promise of Social Security and Medicare.

Since the Fair Tax doesn't penelize the poor, every registered household, regardless of income, will get a "prebate" check, every month up to the federal poverty level. This, along with several other features, is how the Fair Tax can be progressive. However, this depends on lifestyle and spending choices. Instead of punishing people, taxpayers, who are successful, it would make life so much freer for all incomes. Retail prices would no longer hide the taxes and cost of doing business, and because of the aforementioned competition, those prices would drop almost immediately. If you were getting the prebate check, based on the size of your family up to the poverty line, and prices dropped maybe 20%, how much easier would life be? With the recession, and the loss of jobs and homes, the Fair Tax would rescue many, and with the influx of corporations, jobs would be plentiful once again. Heck, as Neal Boortz has been known to say, "You would have to hide to not have a good job".

On that thought, I'll end this for tonight, and finish up in the next entry. Hope everyone has a good weekend. Bye, for now.

The Truth About the Fair Tax

     Goo--ooo-d Morning, People! Oh, I know...you looked at the subject and said "BORRRRING!!! But trust me, it isn't if you are currently paying those taxes. And there is so much bad and wrong information being put out there by the Progressives and Liberals, that everyone who knows the truth about this proposal MUST keep trying to get it understood and passed. The people in D.C. are stealing the future of our children and grandchildren. Our Country cannot maintain a $12 + TRILLION dollar deficit. So, what are the people in D.C. doing? They are RAISING the debt ceiling so that they can borrow and spend more. They are doing exactly what we fought the British and the King for-taxation without representation, because the vast majority of Americans are NOT being represented! Not at all. And if you actually are among those who pay taxes, and I'm not talking about the FICA deduction, because Social Security deserves, and requires, a whole entry of it's own. I mean taxes that you don't get back, both Federal and State. And not the 'earned income' that is 'earned' only by having children, either, because you didn't pay that money into the system, and it's money that rightfully belongs in someone else's pocket! Now, I know that that statement is enough to get me onto the Progressive's Hit List, but it had to be said before we can discuss what the system does now, and what it can do if the Fair Tax is passed.

     Now, the Fair Tax is a 'Consumption' Tax. That means that a person would pay the tax at the time of purchase. This tax would first of all, be "Budget Neutral", meaning that it would keep the Federal Government functioning at whatever level they need to be functioning. It would pay for our War On Terror, which is the proper term, not a 'person initiated disruption', or whatever it was that our people in D.C have decided to call it. It would pay for Infrastructure, and all of the services that are provided by the Federal Departments. Although there are several new ones that need to go away, that is yet ANOTHER column. LOL  Back to the subject at hand. Because no one believes that a person or a family should pay taxes on the things that are essential for living, such as food, or utilities, or an adequate amount of clothes, or school supplies for the kids,(folks over the age of 18 would have to pay for their own books and supplies), the Fair Tax would send each person, or family if that's what you are, the amount of money that you would be expected to pay in tax for those things, up to the Federal Poverty Level, which seems to climb every year. That money would be deposited in your bank account the first of every month. For everyone who met the guidelines, every month. And, if you didn't spend that much on the taxes, well, BINGO!! Extra Money!! Yea! And the tax would only apply to new items; nothing used would be taxed at the Federal level. Nothing. Not a used leather coat, or a used motorcycle to wear it with. Not a used car, except if it only has the few miles put on it in the process of getting it from the ship to the train, to the dealer, and how many miles are added if the car is driven for test drives. If the car is sold, and the new owner decides that they don't really like it, well, then it's used, even if it has less than a hundred miles on it. Now, I must insert here that the fully operational aspect of this tax depends on the individual States passing the Fair Tax, also, which I believe would happen as soon as they saw how well it worked. Or as soon as the people demanded it. Back to what the Fair Tax WOULD do--the best thing, in my opinion, is that it would repeal the 16th Amendment, and it would totally abolish the IRS! That single aspect should be enoough to get it passed, but because of that single aspect, the IRS and all of the K Street lawyers are fighting this bill with everything they have to throw at it, mostly misinformation to Congressmen and Congresswomen. Or Congresspeople, or whatever the politically correct term is at this point in time.Luckily, there is a grassroots movement going on in this Country, and more and more folks are learning the truth about the Fair Tax as they attend The Tea Party gatherings. Yes, the Tea Party, or even the teabaggers, as the loser-wing media is prone to call us. I call them the Dinosaur Media, because they are almost exstinct! I don't even remember who first coined that term, but I still like it. Anyway...

     People, we are already paying taxes, at a rate of about 22-23%, built in to everything we buy. All of the producers, whether those of a field of soybeans, or of a new car, and everything else, pay taxes. But that cost is passed on to you!! At every step of the way that something comes to the stores and every other place that we purchase something, they add the price of their doing business, whatever that business might be. If they grow a crop of veggies, they add their costs; if they store those veggies, they add their cost. If they broker those veggies, they add the cost of doing business. EVERY step of the way to market. Then we pay our state and local taxes on top of it. Add it up, and you are paying a hidden tax of about 22-23%. 

     I think that is enough to digest for a day or two, so I'll continue this in the next blog entry. Thank you for reading my musings on politics. I'll soon do a blog on my artworks, of whatever kind I happen to be doing at the time.  

It's not ALL bad out there...

The Dems are getting more and more frightened that they might lose the seat held by Kennedy since 1962, and they should be. Martha Coakley has been a terrible candidate, mostly by refusing to even run a campaign until just recently, but also making ridiculously stupid comments like she did the other night during the only debate between all three candidates when she stated that there are no more terrorists in Afghanistan. Add in the fact that Republican Scott Brown has vowed to be the 41st vote to kill the healthcare bill, and that he's now taking in a million dollars a day for his campaign, and one can see why the Dems/Progressives are sweating buckets. They decided yesterday to bring in the big guns, and it was confirmed that Obama would be going to Massachusetts this weekend. The Obama camp said that he was not asked to appear until Friday, but the Coakley people said that they asked months ago. No matter, I don't believe that President Obama's appearance will make any difference. When Coakley said that she was running to fill "Kennedy's seat", and Brown countered that the seat didn't belong to Kennedy, or even to the Democrats, but that it "Belonged to the people of Massachusetts" he got it exactly right. And I believe that there are a very many people in Congress who will be given messages just like that come November. It's time that they all realized that they work for us, and we're taking our seats back!!!   

What a mess!!

Oh, where to even start...I've been away from the computer, mostly, for too long, and too much in the news to discuss. But I said that the next entry would be about the Health Care bill, and so it will be, at least to start. In a last minute deal with Nebraska's Senator, Ben Nelson, Reid said that they would excuse Nebraska from having to pick up the extra Medicaid that will inevitably occur as millions more are added to the rolls. The deal is worth an estimated $100,000,000, and it means that the other states will not only be taking care of their own expanded Medicaid rolls, but they will be picking up the tab for Nebraska's increases also. Well, it seems that the Attournys General of 13 states have objected, threatening to sue if that provision isn't removed, questioning it's constitutionality. The 13 are Alabama, Colorado, Florida, Idaho, Michigan, North Dakota, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia and Washington state. Even some of the Representatives in Nebraska are asking if it's legal, let alone fair. Reid had to agree to this to get the vote of Nelson for cloture, meaning debate was over, and the bill could enter into negotiations to reconcile the two bills from the House and Senate. If Harry Reid aquiesses and removes that provision, will he lose Nelson's vote to send the new bill to the full Congress to approve and send to the President? He needs every vote to keep the Republicans from fillibustering when the bill comes up for a vote again. And how about the $300 million sent to Louisiana? And all of the other pork in this monstrosity? Not to mention the legality of forcing American's to buy health insurance, thereby mandating that people pay for something they may never use, or might not use for years. The truth of it is that this bill is just one lawsuit after another waiting to happen. At least, with any luck. However, it is not known at all yet whether Reid will have the votes at all after the Senate bill is reconciled with the House bill. If there is a public option in it, he will lose at least two Democrats, and Independant Senator Leiberman. He can't afford to lose anybody if he wants it to pass. Guess we will have to wait for details to leak out about the newly combined bills after they get back from their 'holiday' vacation. Should be interesting, to say the least.