A good read...

Nothing is etched in stone yet, but the president wants a stimulus package that pours about $145 billion into the economy. This is equal to about 1% of our gross domestic product.   The principal difference between the parties seems to be that the president wants income tax rebates paid only to people who actually pay income taxes. Imagine that. The Democrats, of course, want these income tax rebates paid to people who do not pay income taxes. That, my friends, is par for the course for Democrats, the champions of income redistribution.



Only in the mind of a Democrat would you envision an income tax rebate to someone who does not pay income taxes. Next up? Perhaps the Democrats could demand that General Motors pay rebates on new Chevy pickup trucks not only to people who actually bought the trucks, but to poor people who tried to buy a truck but failed to qualify for a loan because ... well, ... because they were deadbeats.



The Democrats, of course, will try to excuse the income tax rebates for people who don't pay income taxes on the basis that they pay Social Security taxes. Sorry, doesn't work. Those Social Security taxes are premiums paid for a defined benefit. That money (supposedly) comes back. To give people these phony tax rebates on the basis that the non-income tax payer paid Social Security taxes is to do nothing less than to give these people a free ride on Social Security. I've been telling you for years that we were coming to this. Once the Democrats manage to get their core voters freed from any responsibility to pay income taxes, they start working on the Social Security and Medicare taxes. Their goal is nothing less than to completely eliminate any responsibility their core voters have for the payment of any federal taxes of any kind. You can just imagine the campaign rhetoric we'll get from the MoveOn Democrats then:



"Vote for those Republicans and they're going to make you pay for your own:



(a)   Social Security

(b)   Medicare"



That, my friends, is a winner at the polls .. and the party of class warfare knows it.



OK .. you knew it was coming, so here's the FairTax speech. Don't run away ... I'm going to approach it from a somewhat different perspective than what you've heard in the past



First, economic stimulus.



Both the Democrats and the Republicans seem to think that about $145 billion would be a good shot in the air for our economy. A one-time infusion of $145 billion. Great. I'm impressed.



Now ...let's see. Just what does it cost our economy every year just to comply with our hideously complicated tax code? I think I remember. Perhaps I remember because this very topic is a big part of "FairTax, The Truth: Answering the Critics" coming out in just two weeks. The answer, depending on how you want to calculate it, is anywhere from $300 to $500 billion a year. Now if we were to adopt the FairTax that would mean that our economy could get an infusion of over $300 a year that could be invested in business expansion and jobs creation rather than on the record keeping, paperwork and other tax compliance costs. The political class seems to think that a one-time infusion of $145 billion would help. Well, what could $300 to $500 billion a year do?



Really, though, those tax compliance costs are chicken feed compared to the American wealth that is working in offshore accounts. How much are we talking about here? Let's try $13 trillion dollars. And just how much is that? That's about ninety $145 billion stimulus packages. Pass the FairTax and there is no longer any reason for American investors and businesses to send or keep their dollars overseas to work under more favorable tax conditions. That money starts coming home where it can work right here in the USA with no tax consequences. Just how many new jobs do you think would be created over the years following adoption of the FairTax with trillions of dollars being repatriated to work in our economy at home?



That's just a brief overview of some of the ways our economy could benefit from the FairTax. There are some rather startling details in the book.



OK .. now for the Democrats class warfare game:



Just watch the battle over the next few days on the economic stimulus plan. Bush will try to save the tax rebates for people who actually pay taxes. Democrats will try to expand the free ride for core Democrat voters. With the FairTax none of this is possible. Democrats could never say "Vote for the Republicans and they're going to make you pay Social Security taxes" because nobody would pay Social Security taxes; ditto for Medicare taxes and federal income taxes. We could also throw in death taxes, capital gains taxes and dividend taxes. With a system were people are only taxed when they spend, the opportunities for class warfare rhetoric are, to say the least, limited.



One more thing about economic stimulus ... almost forgot this one.



The political class is making a big deal about a one-time $1600 "rebate" for your typical family of four. Yeah .. that's nice. Sixteen hundred bucks. Wow. That would amount to about $133 per month over a year. Now, let's consider the FairTax prebate. Under the FairTax every household of four would receive a check (or credit) in the amount of over $500 per month .. 12 months a year .. right up until the time that family either gets smaller or larger, and then the prebate would be adjusted accordingly. Sure beats the stuffing out of the president's plan, don't you think?



Remember, "FairTax, The Truth: Answering the Critics" hits the bookstores two weeks from tomorrow. If you want to take this tax idea and stick it right back into the face of the Washington elite ...help put the book right up there on the bestseller's list. Is it worth a $10 investment? Click here.

Neal Boortz

Riley wrote: I'd opt out of SSI/FICA in a heart beat.

Me too. I think the SSI ceiling is $160 K

My reason for posting this is to get a few people looking at the FairTax. Look what it could do!

2 points 87, 160 is for 2010. How cool would it be to not pay it at all! Basically, the fair tax gives the gov't the same amout of money but forces them to manage it instead of continually asking us for more. As you point out, most don't get a 6K raise every year...and the incriments are jumping?!!?

Well on the side of Balance



Me, I spend way too much money to support a sales tax based system, besides I think it is a risk to assume that it wouldn't seriously slow down the economy by discouraging spending.

However, really I would really rather we all leave correctcraftfan.com to concentrate on the important things like cool boats, hot cars, dangerous stunts, good looking women and the like.

There are a million politics (or any other topic) related forums where there is likely to be a better discussion of the merits and less likely for there to be a false or one sided email re-published without there being someone to check the facts. And frankly I don’t care who is right or wrong about this stuff as much as the possibility people will get pissed off and distracted from enjoying each others company and the common enjoyment of the finer things in life (as listed above).

I can't quit yet. By saying that you spend too much money to be under the FairTax system only tells me you don't know much about it. You would be spending the same amout of money for a toaster. The embedded taxes would be gone and the FairTax would be in its place. In other words, the toaster would cost the same.

The difference could be expressed as the gov't breaking camp in your backside!

Boortz and Congressman Linder are giving all procedes directly to charity for the new book as they did with the first. I'll be done here...read and understand it for yourself.

with all due respect

. . . . started to go there, but no.

To Joe's point. Not worth it. BKH

bkhallpass wrote: . . . . started to go there, but no. To Joe's point. Not worth it. BKH

When I wrote my last comment I was knew somewhere BKH was going to be looking on with a laugh...

BFN - You're right about the Revolutionary war - half the people in the Colonies LIKED the British because they were profiting from them. In any change there are winners & losers.

I would like the tax system changed too.

BuffaloBFN wrote: SNobsessed wrote: I think the current tax system is sooo embedded with corporate America (who pads many DC pockets) that it will be a long time before any president dimantles it. It makes agreat campaign promise though! I suspect there were many who stayed home during the revolutionary war saying "great idea, but it'll never work".

This is one of the most polite fights I've seen on this site!

At the start of the revolution about a third of the population were neutral "stayed Home",
A third were Loyalists to the British,
and a third were Patriots.

1/3 of the population did what was right and created this great Country!
I'll join the third that needs to continue to be Patriots!

bkhallpass wrote: NAUTI84 wrote: I'll join the third that needs to continue to be Patriots! Does this mean that 2/3 now continue to be Giants.

Brian,
You are probably spot on.
I bet 2/3 of the country will be for the Giants.
But again, I'll join the third that needs to continue to be Patriots!