Utterly Meaningless » Blog Archive » IT’S A DESSERT TOPPING AND IT’S A FLOOR WAX

    Filed at 5:39 am under by dcobranchi

    The Fair Tax will cure all that ails ye. LOTD:

    The Fair Tax would work better than bailout

    The president’s bailout plan, forcing taxpayers to buy $700 billion worth of bad securities, is madness. Those responsible for this mess aren’t held accountable, while those not responsible are. It’s like shooting a heart attack patient in the desperate hope it will somehow help his heart condition.

    A better plan to restore liquidity and hope to our economy is the Fair Tax. It is a national sales (consumption) tax that replaces the federal income tax.

    Economists agree that a consumption tax is more pro-growth than an income tax. Income taxes penalize (and thus reduce) savings, investment and productivity. These are all things we desperately need. Twenty years of studies have shown that under the Fair Tax, the upper class will be approximately 5 percent better off, the middle class approximately 10 percent better off and the lower class approximately 20 percent better off. Unlike the president’s bailout proposal, under the Fair Tax, we all win and those on the lowest rung win the most.

    Under the Fair Tax, there are no federal taxes on businesses. How could any business in any country with any amount of corporate taxes compete with United States businesses with no corporate taxes? Ross Perot’s whooshing sound will be businesses, jobs and a whole lot of money flooding back into America.

    As usual, Washington has got it all wrong. We don’t need a three-quarter-trillion-dollar anchor around all our necks, we need the Fair Tax. Please contact your congressional representatives and tell them so.

    Stephen Sanders


    Comment by
    October 10th, 2008
    at 1:48 pm

    By shifting our federal tax system from income to sales, the Fair tax (bill HR 25) would (a) eliminate the guaranteed steam of revenue that it uses as collateral to borrow even more and (b) give our elected officials the proper incentive to consider the interests of the people over the special interests.

    There is a separate bill in the senate (bill S. 1025) is an amendment to the Constitution to repeal the 16th Amendment. That would be helpful however, it would NOT eliminate Congress’ power to tax income, just make more difficult. What we need is an amendment that explicitly protects all income from taxation by any level of government.

    I also support limiting the number of consecutive terms a politician may serve in Congress but not the number of terms they may serve in life.

    Comment by
    Daryl Cobranchi
    October 10th, 2008
    at 1:57 pm

    Google Blog Search much?

    Comment by
    Daryl Cobranchi
    October 10th, 2008
    at 2:05 pm

    And regardless of the merits (or lack thereof) of the so-called Fair Tax, it would do absolutely nothing to inject the capital that banks need to get the credit markets unfrozen.

    But proponents of the so-called Fair Tax are like the proverbial handyman who only has a hammer.

    Comment by
    October 10th, 2008
    at 5:49 pm

    Daryl…. you need to educate yourself about the FairTax. I think switching from punishing savings to encouraging savings would do a little something to inject capital into the banks… to say the least.

    Comment by
    Daryl Cobranchi
    October 10th, 2008
    at 6:25 pm

    I’ve read plenty. 1) It will never happen. 2) Even if it did and had some salutary effect on the savings rate, it surely wouldn’t amount to a hill of beans in the short run.

    The LttE was a waste of a stamp.

    Comment by
    October 12th, 2008
    at 11:35 am

    The so-called “fair” tax is not fair and not what its proponents claim. Here is a long article and the followup from 2005, detailing exactly why: