Excerpt from Politics IOU by Grandma Thunder.
There are two kinds of people: those who give and those who take.
There are two kinds of citizens: those who produce and those who consume.
All people give and take and produce and consume, but it is important to weigh in as a giver and a producer.
There are citizens that do great work in the larger corporations and employees who do good work in the public sector and then there are hard-working small businesses with entrepreneurs working 24/7. There are some citizens who even hold down more than one job or one business to make ends meet. There are producers in both the private and public sectors and it is this kind of person that drives the economy.
Typically under our current tax burden workers pay more than 30% in income taxes, not to mention the gas tax (going up) and property tax (going up) the state tax (going up) and the sales tax and the fire tax and the death tax and and and, and on and on . . .
If all that tax money could be turned into spending, it would boost the private sector, and they who are the biggest employer of all, could hire more employees. As these new employees begin to pay taxes themselves, it is a win-win situation putting more tax money into the tax coffers.
It is when the volume of taxes goes up that the public officials get a raise!
It is not how much a single citizen pays in taxes (rich or poor) it is how many workers there are out there paying taxes; it is a horizontal benefit, not a vertical liability. We all win when the tax burden is spread over the many.
This is just a preamble to introduce the concept of a Fair Tax.
The argument for a fairer tax is that the rich hide their wealth in the mountains or on the islands, or in tax free havens. The less they pay, the more the burden falls on the corporate worker. the rich could be taxed more but they are astute to the degree that if they were taxed more they would just go hide their money elsewhere ( beyond the borders of the nation) and it is a big world to get lost in. Yet even the rich cannot hide their consumption.
In addition there is the whole under-cover illegal economy of organized crime, but why mount a costly war going after them? They also cannot hide their consumption.
Indigents on welfare are sometimes dishonest and we heard yesterday of a man and woman on welfare who have eight Big-Screens in their home and all have been funded by the taxpayer dollar. Welfare criminals can defraud the system, but they cannot hide their consumption.
Thrifty public workers are rewarded by the Fair Tax.
If taxes are taken out on consumption rather than on income, innovation is protected. Those who invest their money, not in the market, but in their own businesses or a side business. This we want, for it is they who point the economy towards prosperity and when they are finally multiplied, we have a system that is not only fair but also increases the number of workers in the nation.
So taxing ONLY on consumption is a no-brainer.
For all those in government who genuinely want to find better ways to increase the nation’s productivity, think hard and long about our complex tax system, which was designed to be an obfuscation; it was always designed to be unfair.
You are challenged to think it through, and if you are honest with yourself , you will conclude that prosperity can come back with a FAIR TAX.
Co-sponsor the Fair Tax.
Quote for the Week
“The hardest thing in the world to understand is the income tax.” — Albert Einstein, physicist