Tuesday, April 14, 2009

Taxed Enough Already (TEA) Party

The Congress and the Federal Government are on a spending binge.
They are trying to make up for consumers who slowed their spending
to pay down their own debt. [see first post, 22 March]
The problem is bipartisan. PGWB had the first 2 Trillion dollar and
3 Trillion dollar budgets. The U.S. Constitution was set aside in most
of the recent spending. Adam Smith's "invisible hand" which guides
the market economy was set aside for very direct government
intervention.
No one is talking about the 101 Trillion dollars in unfunded
obligations for Social Security (the original Ponzi scheme), Medicare,
and Medicare Prescription Drug Benefit, etc.
The Fair Tax will make taxes more transparent. A consumption tax
has few loopholes. The rich will continue to pay most of the federal tax.
The prebate will ensure that the tax is not regressive. Those who live
frugally may pay less tax than they currently do. There will be no April
15 tax day and no quarterly estimates. A $1000 wage will be $1000 at
the bank - no deductions for income tax, FICA SS or FICA Medicare.
Many politicians have been intentionally misleading about the Fair
Tax. They present the 23% consumption tax and do not mention that
it replaces an equal amount of other taxes. It is designed to be revenue
neutral. The Fair Tax would deny them the power to grant specific tax
deductions to their friends. The $7,500 subsidy on the Tesla is a prime
example. Most taxpayers will not buy this electric car for $56,400. Few
will be able to take advantage of the $8,000 home-buyer subsidy. The
rich can buy first homes for their adult children.
Capitalism and the market economy has made the U.S.A. a superpower.
A centrally-planned economy will make us a 1980s Soviet Union.

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