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Rmember this?

Rmember this?

Friday, November 12, 2010

Fair Tax

I can't figure out why the fair tax idea is so controversial.  I believe it is one of the only ways to bring about "fairness" in the tax system.  The progressive system that we currently have is obviously dysfunctional, and at times, irrational.  The tax code is extremely long, and confusing.  It changes constantly, and is subject to interpretation, if you can even understand it.  It is written by tax cheats, for tax cheats, and it's complexity is only dwarfed by the health care legislation, which is nothing more than another tax in and of its self.  The fair tax, as I understand it, would add a percentage rate tax on any, and all purchases made by every single consumer.  This will eliminate almost all "tax deductions" putting every person on an equal playing field.  Even illegal aliens would pay their "fair" share, easing the burden of tax payers of the existing system for their health care, education, and welfare expenses.  Thus lightening the load on the social security administration trying to keep up with stolen social security numbers and identity theft.

      The Value added tax ( V.A.T. ) that has also been floated, will not replace the existing tax code but rather, it would augment it.  This tax is widely used in Europe, and it is atrociously high.  This tax is also a percentage rate based tax that taxes just about every product or service provided as it goes down the production line piece by piece until the final product, or service is brought to market.  This forces the manufacturer, or provider, to pay this tax on every step of production as the value of the product or service is increased.  Then ( of coarse ) they pass the added cost onto the consumer, who then is forced to pay higher prices to cover the added cost of doing business.  This is done on top of the progressive tax system, and while it is proven to add money to the coffers of the taxing authority, it is a hidden tax.  The people paying it don't actually know how much of what they are paying is actual cost, or the taxes being levied on the product or service they have just purchased.  This tax is also subject to constant change.  Making it difficult to regulate or control.  An UN fair tax.

    The only reasons that I see that this is such a hard sell to the powers that be is that 1), they would have to first abolish the sixteenth amendment to the constitution.  This amendment establishes the income tax.  2). Amending the constitution is a long and drawn out process that requires a majority of the states to sign on to the process.  While I don't see that it would be a difficult sell, the effort such an undertaking would require by both houses is probably too much work for them to bear.  As we know, they don't actually want to EARN the money we pay them to represent us, they would rather stay at home and just cash the checks.  3). The Internal Revenue Service would lose Jobs, and the jobs that were left, would be much easier to do, thus cutting the hours required to do it, saving us ( the tax payer )  more money ( not in their best interest ).  Of course this theory becomes a little more complicated if Obama care stays in effect.  But I digress.

    It is my belief that the fair tax would not only bring more money to the government, but help "We The People" shrink it in both size and scope.  The reduction of the size of the I.R.S. alone would bring about far less intrusion into the lives of "We The People", (something the Obama administration hates).  The increase in the tax revenue generated by the "fair" tax ( more people would actually pay tax ) would also make it easier to keep Social security funded ( if we can just find a way to keep congresses greedy hands out of the pot).  Medicaid/care would be easier to provide, easier to regulate, easier to administrate.  Again making administrative cuts in these areas possible, again shrinking Government, and saving money.  But then reducing the size of the deficit would have to be a priority.  It is not.  I think that the implementation of the "fair tax" alone, could bring about a balanced budget, lower deficits, and smaller, less intrusive government, and bring liberty back the the citizens of the United State of America.

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