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.