Those of you who have been here long enough know that I am a strong supporter of the FairTax. The current income tax system is punitive, complex, and subject to the manipulative whims of legislators who use the system to curry favors with the electorate. An exemption here, a loophole there, and Congressman Slickpalm gets to brag to his pet constituents how he is helping them out. The FairTax would empower people over government, and that’s why Congress has fought the idea more than Ted Kennedy fights sobriety.
Anywho, here are two more reasons to support the FairTax:
- The Obamessiah has decided that seniors ought not pay any income tax at all. Apparently, merely being old is grounds to avoid supporting your government. Leave it to all us whippersnappers to support your old behind.
- A new study shows that most companies avoid paying income taxes. Aside from the obvious fact that companies don’t pay taxes (they merely collect them from everyone else), what this shows is that money that could be flowing through our own economy’s veins (and into government coffers) is instead propping up other countries’ economies. When you punish success, success looks elsewhere.
The FairTax would strengthen our dollar, put more money in everyone’s pockets, create so many jobs you could shake a stick at (relax, liberals…no one’s going to force you to get a job!), bring back hundreds of billions of Americans’ dollars that are currently in other countries (or offshore accounts, to avoid our punitive tax structure), invite foreign investors to sink their money into our new tax sheltering economy, result in more productive activity…all of which would result in not just raising others’ standards of living, but ultimately increasing revenue coming into the federal government.
Republican legislators oppose the FairTax because it takes away their power. Democrat legislators oppose it for the same reason, plus it obliterates their ability to wage class warfare on the great unwashed. H.R. 25 (the FairTax bill) has well over 100 House co-sponsors, but it needs more. Considering that this was once but a blip on the radar screen, and now has seen the book The FairTax shoot to #1 on the NYT Best Seller list, the chances are getting better of its passage…even if it years away from happening.
Check out the Aussies, will ya? They’re getting the crazy idea that lowering taxes will create a financial incentive that will ultimately increase their revenues! What’s next, an understanding of how supply and demand works? From Oz:
Australia will reduce the amount of tax overseas investors pay on dividends from managed funds to 7.5 percent to encourage investments in real estate trusts.
The tax, currently 30 percent, will be cut to 22.5 percent in the year starting July 1; 15 percent the following year; and 7.5 percent the year after that, Treasurer Wayne Swan said in his first budget in Canberra today.
“These arrangements will make Australia’s withholding tax rate one of the most competitive in the world,” Swan said. “The arrangements will ensure Australian property trusts are well placed to attract foreign investment.”
Australian money managers oversee more than A$1.4 trillion ($1.3 trillion) in assets, and that is forecast to exceed A$2.5 trillion by 2015, Swan said. Foreign investors account for only 3 percent of fee income, he said.
We could do something like that here in America that will attract foreign investors by the boatloads. It’s called the FairTax.
I have been following former Arkansas Governor Mike Huckabee’s campaign, and he’s been coming on strong in Iowa. He’s a supporter of the Fair Tax, which pretty much skyrocketed him to #1 on my preference list.
However, the more I read about him, the less I like him. He looks like Jorgé W. Bush redux, especially on the criminal immigration issue.
NumbersUSA, a group who really rallied the opposition to Bush’s and the Senate’s amnesty plan this year (and helped to kill it), calls Huck “an absolute disaster” on illegal immigration. Huck has been unapologetic, touting (though in some cases, lying about) his record of giving college scholarships to criminal aliens.
More disturbing details of his record are here. Throw in some tax-and-spend-and-tax-some-more policies, and Huck doesn’t cut the mustard. I’ve had almost seven years of “compassionate conservatism” (aka “Nanny State Lite”), and I’m afraid I can’t handle much more.
In part, anyway. An enlightening analysis from the Heritage Foundation:
The inherent strength of the peculiarly American version of free enterprise is shown by how long and how well the U.S. economy has been able to withstand the constant battering by wrong-headed government policies — but the bulwarks are starting to weaken.
Once upon a time the “greenback” was the world’s premier currency. Now the dollar is cheaper in value than both the euro and the British pound.
In recent months, it has twice hit record lows. Every time our currency cheapens, the dollar price of oil and everything we import goes up.
With less purchasing power in the global marketplace, we Americans are poorer than we were before. We lose confidence in ourselves and stature in the eyes of others.
Currencies rise and fall against one another in international exchange markets on an almost daily basis and for a variety of reasons — including the recent expansion of the money supply by the Federal Reserve.
But the long-term weakness of the dollar is fundamentally the result of two failings.
First, we Americans do not save enough to meet the economy’s requirements for capital investments.
We must, therefore, each year acquire from other countries about $700 billion of capital to fill the hole left by our profligacy. Second, and corollary to our lack of saving and investment, we consume more than we produce.
We must, therefore, acquire from other countries not only large amounts of their savings but also large amounts of their goods and services.
Because our exports (dollars flowing in, goods flowing out) are much less than our imports (dollars flowing out, goods flowing in), there is an oversupply of dollars in the international market that drives down the price.
The federal government is strongly implicated in America’s spendthrift status, its enormous trade deficit, the weak dollar and the fact that most Americans are less well-off than they should be.
More than a hundred years ago, Henry David Thoreau (hardly a right-wing ideologue) had already tumbled to the sad truth about government.
He wrote: “The character inherent in the American people has done all that has been accomplished; and it would have done somewhat more, if the government had not sometimes got in the way.”
Insofar as profligacy is concerned, the federal government leads by example. For 24 of the past 30 years, it has run a substantial budget deficit, having spent more than it takes in in revenue — and when it does so, it reduces national savings.
Federal budget deficits are dissaving by the government in the same way that individuals dissave when they spend more than they earn. Most Americans follow the government’s example.
Those who rebel and who do save and invest are punished with extra taxes. The government has for decades deliberately taxed income that is saved and invested far more heavily than income that is immediately consumed.
Gross private savings has been less than gross private investment for 26 of the past 30 years.
Not only do taxes on savings and investment weaken the dollar, they slow the growth of the private economy — often costing Americans $3 billion in lost incomes and jobs for every $1 billion of revenue yield to the government. The total cost of tax-induced collateral damage to the economy is about $2.5 trillion per year.
Now the Democrats in control of Congress, led by New York Rep. Charles Rangel, are preparing to kick up the deadweight loss to the economy by another $2.9 trillion.
That’s a $2,600 annual whack for every family in America for the next 10 years — and that’s only for starters.
To make matters worse — especially insofar as concerns the trade deficit — the government heavily taxes the export of American-made goods, making it hard for companies to compete in the global markets from their home base in America.
But when American companies flee this country and operate abroad — because of the penalties on exports or for other reasons — they get a tax holiday from the U.S. government, provided they reinvest their foreign-source profits abroad to the benefit of some other country’s economy.
Woe be unto them, however, if they bring the money home to reinvest in America. The government will tax them.
No wonder the annual U.S. trade deficit is about $0.7 trillion and is equal to nearly 6% of America’s entire gross domestic product. And no wonder those in other countries are downgrading their view of the American economy and downgrading the dollar.
The current tax structure in this country is a mess, and it’s finally beginning to mess up the economy in terms of dollars being weakened and revenue going unrecognized domestically. Sure, we have a lot of great economic indicators: low unemployment, record high stock market, record high home ownership, etc. But if the dollar continues to slide, the bill become due at some point. One thing would fix that problem in a jiffy, though: the Fair Tax.
By now, most of you know that I am a proponent of the Fair Tax. Here’s yet another reason why, courtesy of Neal Boortz:
PITY THE FOOL
The fool I’m referring to here is the poor sap from New York who caught that Barry Bonds home run ball in San Francisco earlier this week. The ball is reputed to be worth in the neighborhood of a half-million dollars.
Here’s the rub. Accountants certainly aren’t in agreement on this, but some are saying that this character owes the IRS about $200,000.
Think about it. If someone gives you a car worth $500,000, you must include that car as income on your tax return. The extra income shoves you into a higher bracket, and you’re going to fork over at least $200,000. Well, what’s the big difference between someone giving you a half-million dollar car and a half-million dollar baseball?
New York tax lawyer John Barrie says: “It’s an expensive catch. Once he took possession of the ball and it was his ball, it was income to him based on its value as of yesterday.”
Some tax experts say that no, you don’t have to pay the tax until you actually sell the ball. Sell, that’s not the way it would work for the car, so why would the government treat that ball any differently?
Isn’t this just grand? Our wonderful tax system at work. Does anyone out there have any suggestions as to how we might change things?
Yeah, I have a suggestion: FAIR freakin’ TAX!
Sometimes, I think these guys are just looking for reasons to piss off the left (which, of course, is almost always a good thing). Dick Cheney, you magnificent bastard! From NewsMax:
Oil services giant Halliburton Co. will soon shift its corporate headquarters from Houston to the Mideast financial powerhouse of Dubai, chief executive Dave Lesar announced Sunday.
“Halliburton is opening its corporate headquarters in Dubai while maintaining a corporate office in Houston,” spokeswoman Cathy Mann said in an e-mail to The Associated Press. “The chairman, president and CEO will office from and be based in Dubai to run the company from the UAE.”
Lesar’s announcement appears to signal one of the highest-profile moves by a U.S. corporate leader to Dubai, an Arab boomtown where free-market capitalism has been paired with some of the world’s most liberal tax, investment and residency laws.
“The eastern hemisphere is a market that is more heavily weighted toward oil exploration and production opportunities and growing our business here will bring more balance to Halliburton’s overall portfolio,” Lesar said.
Hey, Hillary…I got your “windfall profits tax” right here!
You know, if we had the Fair Tax instead of our current broken and unfair income tax system, companies like this wouldn’t need to seek tax-friendly nations…because we would actually be one!
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