Diary

'Fair Tax' is a Good Start in Reforming System

(First, a note about our Tea Party: More than 200 people showed up in ultra-liberal Pittsfield, Massachusetts for our protest in a small city in an isolated part of the state. We encircled the oval park in the center of the city. There were two hours of honking support and virtually no dissent from the traffic circling the park. This column will offer a full analysis of nationwide Tea Party activities tomorrow.)

 

Here is an encore presentation of a February editorial about the Fair Tax, a way to revamp the tax collection system:

 

Democrat US senator John Kerry of Massachusetts recently told Meet the Press that Americans are wasting untold zillions of hours every year in traffic jams, and that the United States therefore needs to invest in mass transit.

 

But new mass transit systems are expensive and questionable undertakings. Meanwhile many of the new mass transit systems that have been built in the last 20 years are giant boondoggles with few riders and sky-high costs like unionized government wages for employees.

 

Now consider another system that is all clogged up and wastes billion of hours every year – our tax system which is so bloated, bureaucratic, expensive and time-consuming that it must be replaced. And the replacement will not cost a single dime. In fact reforming the tax collection system would would save huge amounts of money; stoke our economy; and spare Americans untold man-hours of time, cost, anxiety and fees every year between New Year’s Day and April 15.

 

To easily unclog our tax system would require only an act of Congress and a presidential signature. Imagine if we could unclog our highways with the stroke of a pen!?

 

Yet liberals oppose reforming our tax system with just such an action.

 

Why? Well, consider the proposed system, and its implications for liberalism and you’ll understand.

 

The solution to streamlining our tax system would be to adopt what is called the Fair Tax. This would be a federal sales tax on most things that you buy – cars, computers, lamps, desks, rugs, chairs, lawn mowers etc. It would be like a state sales tax but with the revenues going to the federal government. The Fair Tax would completely replace all the tax forms you have to fill out every year. If you buy a lot of stuff, you would pay a lot of tax. If you wanted to pay less tax, you could buy less stuff.

 

A Fair Tax would do many positive things, which is why liberals oppose it:

 

*A Fair Tax would eliminate the need for the Internal Revenue Service and its thousands of government employees and its $11 billion annual budget. Liberals oppose this because it would put thousands of colorless, overpaid Democrat functionaries out of work since Democrats make up most of the government bureaucracy. And the taxes needed to maintain the IRS itself are part of the incremental seizure of wealth by the bureaucrat left that empowers socialism. Liberals never want to cut any government spending – unless they cut the military.

 

*A Fair Tax would eliminate the need for citizens to spend months worrying, procrastinating, filling out tax forms, hiring accountants and lawyers and generally feeling stressed out until April 15. Liberals oppose this because they want Americans to feel stressed and oppressed by a government agency that they fear. Because socialism uses the power of government to intimidate the people. This story is as old as mankind itself. Tyrants have used the tax collector as an agent of fear for millennia.

 

*A Fair Tax is total simplification, meaning that you automatically pay your tax when you buy things. Then on April 15, nothing. No 1040s, no 1099s, no tax tables, no sleepless nights with the calculator, no midnight runs to the post office. The whole 64,000 page tax code would go out the window. Liberals oppose this because socialism is a system of complicating people’s lives with theories, bureaucracies, programs and schemes that confuse people, rather than allowing society to free itself using the innovative nature of the individual.

 

*A Fair Tax would eliminate billions of dollars wasted in tax-preparation costs. According to one study, compliance with the current federal tax code costs American taxpayers almost $150 billion annually(!!) for accountant, lawyers, and tax preparers, and lost economic efficiency associated with the tax system may top $500 billion! Liberals oppose the Fair Tax because the current system imposes another cost of living that keeps people poorer… where liberals want them.

 

*A Fair Tax would eliminate withholding from your paycheck. This is a huge issue. It means that the government would no longer hold onto your money from January 1 of the tax year to April 15 of the following year without your being able to access that money or earn interest on it. If you kept it, you could spend it as you wish, which would help the economy expand. Liberals oppose this because withheld taxes are “free” money for the government to spend as they wish – at the expense of the taxpayer.

 

*A Fair Tax would be foolproof. Buy a lamp, pay the tax, end of story. There would be no need for audits, disputes with the IRS, penalties, interest, investigations, inquiries, confusion, threatening letters and all the hassle. Liberals oppose this because they like to tie up citizens in knots using the government as the rope.

 

*A Fair Tax would eliminate the need for Democrats to grandstand in Congress for this tax and this deduction and that credit, which is all political manipulation. Liberals oppose this because they love to grandstand in Congress and to add hundreds or thousands of pages to the tax code. That is what they do best.

 

Don’t expect liberals ever to favor any simplification of the tax code with a Fair Tax or any other system, however. Because without the complex and labyrinthine government bureaucracy that nobody can figure out, we would not need liberals to explain it to us – which they can never do anyway. Studies show that routinely more than 50% of the tax advice given out by the IRS itself is wrong.

 

Of course liberals will try to confuse the issue of the Fair Tax saying “It will add thousands of dollars to the cost of a car!” expecting the average public-school graduate or Democrat voter to believe that, without explaining that a Fair Tax simplifies tax payment and does not increase taxes at all, just shifts them. So indeed you may pay thousands of tax on a car that you buy every 8 years, but it replaces payments elsewhere.

 

Many nations have adopted tax simplification systems like Fair Tax or flat tax systems. And every time they are used, they increase economic growth, which is a happy byproduct because they streamline the economic system.

 

Our current tax system is a giant traffic jam that liberals wish for us to live with every day, and one that we can solve easily without spending a dime. Senator Kerry does not want that to happen. No Democrats do. Because it truly would liberate the people, which is something that they oppose.

 

Please visit my website at www.nikitas3.com for more. You can print out for free my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.