Posted by
Jim Hunt on Monday, February 09, 2009 8:22:38 AM
Later today, in all likelihood, the monstrous spendulus program will probably pass the Senate courtesy of three foolish Senators who call themselves Republicans. This bill will do little or nothing to stimulate the economy (as reported by the Congressional Budget Office and many others). In fact it will make things worse by simply extending and exacerbating the credit crisis and deepening the current recession.
There is a relatively simple solution to the economic problem we face. The good news is most of Washington knows what the solution is, the bad news is that they won’t implement it because it takes away too much of their power over us.
The solution is called the FairTax. I won’t go into all the arguments for it here, I hope you will read Neal Boortz’s and John Linder’s books on the subject. They are most persuasive. But I do want to point out a couple of key components of the FairTax that would virtually guarantee a quick end to this recession:
First, paying taxes would become truly voluntary. It would be your decision when or if to purchase something and thus incur the tax. You would be able to keep 100% of your income (from any source) because there would be no income tax, no Social Security tax, and no Medicare tax. Also that income would likely go up across the board because there would be no corporate taxes, dividends can rise, because there would be no company contribution to Social Security, some of that money could pass to employees. Further, competition would force prices down now that the tax component of the cost of goods is removed.
Secondly, the elimination of the current 35% corporate income tax would make the United States the most attractive place in the world to run a business. Studies have shown that TRILLIONS of dollars of new investment would pour into the United States as businesses chose to move here rather than offshore.
So why won’t Congress do this if it is such a great plan? Simple: manipulating the current tax code is the way Congress-critters hand out favors and manipulate the voters. Plus, if the economy is booming and people are in control of their own lives, they won’t want or need big government.
It is an unfortunate truth that Congress has become an oligarchy. Protected by gerrymandering and special interests, Congress has broken faith with the Declaration of Independence and the Constitution and has set its own interests above those of the American people.
To find out more about the FairTax, please click on the logo below.
God Bless America