Well, Haky you got me, Not really had time to do much face-booking in the last year but this is one area I am passionate about & can't resist. OMG Sorry this is so long but it is a complicated subject. I hope you all will read it through.
While I think the efforts of everyone in this group are very honorable (all politics aside), I ...believe this plan is severely flawed. Please do not take this as criticism as I see more wisdom, effort & sincerity in the below posts than in all the halls of congress. I imagine, however, that the politicians seeing these efforts of folks willing to "donate" more money to the government are now wide eyed like children on Christmas hoping that the presents will open up to something really expensive. I would not think anyone in this group would give an addict more of his vice to cure his addiction. Think about it. We give Congress more money to solve the debt issues from their overspending? The National debt is caused more from spending than from the economy or tax revenues. Besides, what's going to happen to the poor schmo at McDonald's when he gets laid off due to lost coffees sales?
My premise is this: Government will always have a tendency to do what it needs to stay in power before it does what is good for the long run. We are republic and not a true democracy partly due to this fact present in most of history since the time of early Greece.
Breaking this down further, I would reason that our debt problem & it's solution lies twofold in:
1) The natural tendency of government to take what ever money they can and use it in ways that will keep them in power ("men will resort to plunder whenever plunder is easier than work .... neither religion nor morality can stop it" F. Bastiat's "The Law")
and
2) That as long as they carry the power to tax us without fear of retribution they will. (when does "plunder stop? It stops when it becomes more painful and more dangerous than labor" F. Bastiat's "The Law")
Think back to a time in the 1800's when there was no federal income tax. People & Congress voted for what they believed in & not for tax dollars. The real power for Congress in taxation came after WW2 with the withholding's laws. Now we could be taxed and still get a steady paycheck! Tax increases could be spread out over a whole year! What's a few bucks a month to the average joe anyway? Before the time of withholding people felt that pain in March and if it the tax was not warranted SO DID CONGRESS the next November.
So what is the solution? Take The Tax Paying out of government's hands.
There is a bipartisan bill in congress right now that has been tabled for a few years now .... HR 25, S 13. This bill would eliminate ALL (yes ALL...fed inc,FICA,MEDICARE, Estate, Corporate, etc) federal taxes would be paid through a 23% retail sales tax on new purchases. This bill is neutral plus to the existing taxes, makes Medicare & SS solvent, eliminates the IRS and replaces the regressive nature of sales taxes with a prebate to all those families under a certain income. This will encourage savings for the average person (remember no taxes on what you make in interest just on what you spend) and give true incentive to make more money..... a certain boom to our economy. Major retailers (Wal Mart & Target) have already said they would immediately slash their prices by the 23% if it passed thus eliminating a lot of the hidden taxes that come down in the price of what we pay for goods & services. Now everyone has an easy understanding of what they pay in taxes. Even criminals that now mainly deal in cash would be taxed whether they liked it or not. Imagine getting a 15-20% raise next year and not doing anything differently? Now that's a stimulus to the economy
Net net, No new taxes would be levied without a lot of serious pressure and everyone pays taxes only on what they want to spend for.
The problem is that not enough of our two houses have the guts to give up the tax power and vote for it to make it out of committee.
So enough of my talk. I think you have the right idea except instead of giving back to the folks that will eventually spend it I would like to organize a PAC and give the funds to the party with the most votes to make it pass this year. Shoot, $10/week would be easy enough. We'd get it back 3 fold the next year. I am really inspired and will begin the process ASAP. What do you all think? You can read more at the below web sites. Read F. Bastiat's "The Law" written in 1850 first. then peruse the Fair Tax web site. Come on Haky...... it's your fault for getting me going....
While I think the efforts of everyone in this group are very honorable (all politics aside), I ...believe this plan is severely flawed. Please do not take this as criticism as I see more wisdom, effort & sincerity in the below posts than in all the halls of congress. I imagine, however, that the politicians seeing these efforts of folks willing to "donate" more money to the government are now wide eyed like children on Christmas hoping that the presents will open up to something really expensive. I would not think anyone in this group would give an addict more of his vice to cure his addiction. Think about it. We give Congress more money to solve the debt issues from their overspending? The National debt is caused more from spending than from the economy or tax revenues. Besides, what's going to happen to the poor schmo at McDonald's when he gets laid off due to lost coffees sales?
My premise is this: Government will always have a tendency to do what it needs to stay in power before it does what is good for the long run. We are republic and not a true democracy partly due to this fact present in most of history since the time of early Greece.
Breaking this down further, I would reason that our debt problem & it's solution lies twofold in:
1) The natural tendency of government to take what ever money they can and use it in ways that will keep them in power ("men will resort to plunder whenever plunder is easier than work .... neither religion nor morality can stop it" F. Bastiat's "The Law")
and
2) That as long as they carry the power to tax us without fear of retribution they will. (when does "plunder stop? It stops when it becomes more painful and more dangerous than labor" F. Bastiat's "The Law")
Think back to a time in the 1800's when there was no federal income tax. People & Congress voted for what they believed in & not for tax dollars. The real power for Congress in taxation came after WW2 with the withholding's laws. Now we could be taxed and still get a steady paycheck! Tax increases could be spread out over a whole year! What's a few bucks a month to the average joe anyway? Before the time of withholding people felt that pain in March and if it the tax was not warranted SO DID CONGRESS the next November.
So what is the solution? Take The Tax Paying out of government's hands.
There is a bipartisan bill in congress right now that has been tabled for a few years now .... HR 25, S 13. This bill would eliminate ALL (yes ALL...fed inc,FICA,MEDICARE, Estate, Corporate, etc) federal taxes would be paid through a 23% retail sales tax on new purchases. This bill is neutral plus to the existing taxes, makes Medicare & SS solvent, eliminates the IRS and replaces the regressive nature of sales taxes with a prebate to all those families under a certain income. This will encourage savings for the average person (remember no taxes on what you make in interest just on what you spend) and give true incentive to make more money..... a certain boom to our economy. Major retailers (Wal Mart & Target) have already said they would immediately slash their prices by the 23% if it passed thus eliminating a lot of the hidden taxes that come down in the price of what we pay for goods & services. Now everyone has an easy understanding of what they pay in taxes. Even criminals that now mainly deal in cash would be taxed whether they liked it or not. Imagine getting a 15-20% raise next year and not doing anything differently? Now that's a stimulus to the economy
Net net, No new taxes would be levied without a lot of serious pressure and everyone pays taxes only on what they want to spend for.
The problem is that not enough of our two houses have the guts to give up the tax power and vote for it to make it out of committee.
So enough of my talk. I think you have the right idea except instead of giving back to the folks that will eventually spend it I would like to organize a PAC and give the funds to the party with the most votes to make it pass this year. Shoot, $10/week would be easy enough. We'd get it back 3 fold the next year. I am really inspired and will begin the process ASAP. What do you all think? You can read more at the below web sites. Read F. Bastiat's "The Law" written in 1850 first. then peruse the Fair Tax web site. Come on Haky...... it's your fault for getting me going....
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