Fair Tax, Flat Tax, Progressive Tax, Representative apportionment Tax .... PEOPLE, THE PROBLEM IS NOT TAX COLLECTION! We are already receiving 19% of the GDP! We are at top revenue. At best, we may be able to squeek out another percentage point.
THE PROBLEM IS SPENDING! We are past the point where we determine who’s pocket book is going to get soaked the most in taxes. We have to cut back to no more than 18% of GDP.
In 2010 the CIA world fact book estimates the total US GDP at $14.72 trillion. 18% works out to about $2.65 trillion in total spending. The 2010 budget was 3.36 trillion.
In 2011 That picture is even WORSE. The GDP is expected to shrink to a total of 13.5 Trillion. 18% of that is 2.43 trillion. But our fearless and free spending Politicians will increase spending to 3.83 trillion. We need to be cutting and cutting big time.
We have to cut back some 1.4 trillion in spending. 2/3rds of that needs to come out of mandatory spending. 934 Billion out of Social Security, Medicare, Medicaid, and other mandatory programs. This will require cuts in benefits. We also need to slash descressionairy spending by 467 Billion.
That will require across the board and deep cuts. To programs that I dearly love and yes it will impact people I love. But if we do not do it now, the problem will only get worse.
Love Herman...love the fair tax.
Have lots of reservations about how the fair tax would work, especially regarding things like financing on new homes and cars (what becomes of the extra 23% over purchase price people have to pay), double taxation of post-tax savings, etc.
That said, I’d love to see Herman gain real traction. I’ve been watching Trump lately, and I know the guy’s (Trump) not as much a conservative as we’d like, but Cain just doesn’t have the name recognition.
What can we do though?
