Skip to comments.Santa Claus, the Tooth Fairy, and the Fair Tax Proposal
Posted on 04/20/2005 1:25:07 PM PDT by CHARLITE
I know you're tempted not to read this article.
I know this because there is nothing (except maybe an all-night marathon of Al Gore documentaries) more mind-numbingly boring than reading an article about taxes.
Since my column on taxes is not competing as an alternative to "The Internet, Al Gore, & You," I must instead resort to begging each of you to indulge me for a brief moment of your time.
I always thought that only grumpy old men cared about taxes. I vividly remember many days during my childhood, watching my Dadnormally as cool as a cucumberemerge red-faced from his office, grumbling under his breath about what the IRS could do with his Standardized Form 1040.
Like most members of Generation X, my only concern was how to go about obtaining my next pair of Air Jordan's, so I always chalked dear old Dad's anger up to being crotchety and old.
Then I graduated from college, got my first real job, and was rudely given a preview to what my first prostate exam will feel like twenty-five years from now, courtesy of the IRS.
Now each April I find myself resisting the urge to sit on the front porch and complain about taxes (in between yelling at the neighbors to "keep their dadgum dogs off my lawn and telling their kids to turn the music down.")
Tax time always leaves me feeling kind of violated, like I've just finished an annual onenight stand with the government, where they take my money, give me nothing in return, and then I wake up in the morning not respecting myself.
But this year, Georgia Congressman John Linder wants to change that.
Congressman Linder has introduced H.R 25, nicknamed "The Fair Tax Proposal," which would "repeal all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes, and gift taxes - and replace it with a revenue-neutral personal consumption tax," according to his website.
It was initially called the "Snowball's Chance In Hell Act," but lawmakers felt that might be considered a little too negative.
In a nutshell, this bill would replace the current tax system with a 23% national sales tax, which would give taxpayers more control over how much they paid in taxes. If you spend more, you pay more.
According to Americans For Fair Taxation (http://fairtax.org), included in the bill is a rebate payment that would go to every American household to replace the sales tax paid on necessities. Those in poverty, the bill's proponents say, would effectively not pay any tax under the new system. They also estimate that prices for goods would fall some 20-30% because the cost of producing goods would no longer be taxed.
Under the bill, a person making a gross annual salary of $40,000 a year would bring homeget this$40,000 a year. Linder's bill would also eliminate the Legalized Crime Division of the federal government (you might know them as the Internal Revenue Service).
Linder has dubbed the bill "The Fair Tax Proposal."
I, on the other hand, would join millions of crotchety old men everywhere in dubbing it "The Greatest Piece of Legislation Ever."
People from every political persuasion would win with the Fair Tax.
Conservatives and libertarians should be ecstatic because the Fair Tax would pry their money from the cold, dead hands of the federal government.
Conservatives could use the spare change to buy more militarystyle assault weapons. And libertarians, think about how much medical marijuana you could buy with all that extra loot!
If liberals were capable of happiness, they too could rejoice because the "rich" in this country would finally be forced to pay "their fair share." Just think about how much the executives at Halliburton would end up paying in taxes as they consume and plunder the Earth's resources!
Unfortunately, liberal happiness would be short-lived, once it was explained to them that abortions are not considered necessities and therefore, not immune from taxation.
Honestly, I'd like to believe passing the Fair Tax is possible.
I'd even go on the road with Congressman Linder to lobby for the Fair Tax Proposalthat is, if I could keep from laughing at the impossibility of it all.
(I laugh to keep from crying.)
Of course, I also still believe in the Tooth Fairy, Santa Claus, and private retirement accounts for Social Security.
But while we're being delusional, I've given some thought as to what lengths I would go to get this bill passed in Congress, only to realize theres not much I wouldn't do.
In the spirit of Compassionate Conservatism, I would offer help to displaced members of the IRS, by passing out maps to the nearest unemployment office.
I could be Ted Kennedy's designated driver.
I'd even play Spin the Bottle with Nancy Pelosi, knowing full well that a French kiss from San Fran Nan could be waiting for me at the end of every spin (its a disgusting thought I know, but French is the only way liberals do it these days.)
In the insanity brought on by having too much of my own money, I might even check the little box on next year's tax return to donate $3 to the political party of my choice.
These are just hints of the insanity the Fair Tax Proposal could cause.
Taxpayers of the world, unite! Join my army of angry, old, overtaxed men in contacting members of Congress to urge them to pass H.R. 25, The Fair Tax Proposal.
Just don't take it personally when your call or e-mail to Washington is met with bouts of hysterical laughter.
Thank you for indulging me in passing along Congressman Linder's gallant crusade for financial justice, and my personal attempt to unite with crotchety old men across the country.
I promise my next article will not be about the benefits of AARP or the terrific Early Bird Special at Golden Corral.
About the Writer: Matthew Holmes is a North Carolina based columnist. His articles have been featured in the North Carolina Conservative, ChronWatch.Com, World Net Daily.Com, News Max.Com, Opinion Editorials.Com, and other media outlets. He can be reached at email@example.com
IF it's in a retirement plan, you never paid income taxes on it in the first place. Now, do you really have a million dollars saved or are you just blowing smoke?
Versus Your Nightmare's BS.
Or you could give some of it to charity, pay college tuition, give it to me, or invest it all tax free. The choice is yours. Unlike under current tax law.
Now, are you really going to inherit big bucks, or are you just blowing smoke again?
A switch to a sales tax is a tax on current wealth.
Any consumption tax is a tax on current wealth as it only tax on the basis of what is spent out of wages earned whether current or delayed taken from investment or savings to purchase from businesses paying taxes.
That is true of a flat tax on wages earned and business earnings, and VATs as well as any full income tax which levy taxes both consumption as well as production.
The plan is working!
Yep getting the IRS out of the life of the individual household certainly is.
|I discussed the importance of abolishing the income tax because of its tendency to form a habit of servility in the souls of a people that accepts it.
Servility of soul is bad not only in itself, it is also an open door through which will soon walk the abuses of ambitious government power.
Leaders who find themselves with governmental power over a servile people will be quick to conclude that such a people exist to serve them.
"A hand from Washington will be stretched out and placed upon every man's business; the eye of the federal inspector will be in every man's counting house....The law will of necessity have inquisical features, it will provide penalties, it will create complicated machinery. Under it men will be hauled into courts distant from their homes. Heavy fines imposed by distant and unfamiliar tribunals will constantly menace the tax payer. An army of federal inspectors, spies, and detectives will descend upon the state."
-- Virginian House Speaker Richard E. Byrd, 1910, predicting the consequences of an income tax.
Not true. You pay college tuition with post tax dollars (except for tuition deduction which is miniscule). You can give money away tax free under the fair tax. Not so under current tax law, except for limited amounts each year.
Even investment is tax deferred and when taxed, is taxed at one half of the proposed Consumption tax.
Not so. Most individual's investments are in tax deferred retirement accounts. This money is taxed as ordinary income when it is pulled out under current tax law.
Tell me something, do you live where there is no sales tax currently? If so, you are currently being double taxed on your money: once when you earn it and again when you spend it. The difference is that under the fair tax you will not be taxed on your earnings; wages, interest earned, etc. Only when you buy something new, not pre-owned, and services provided by someone. Want to pay less under the fair tax, buy pre-owned goods and fix things yourself or you could turn to the barter system.
You can give money away tax free under the fair tax. Not so under current tax law, except for limited amounts each year.But what happens with the receiver purchases things with the gift? It's taxed.
Not so. Most individual's investments are in tax deferred retirement accounts. This money is taxed as ordinary income when it is pulled out under current tax law.But retired people under the income tax are taxed at a much lower rate than they would be under the FairTax. In 2002, the median effective tax rate on the elderly for the taxes the FairTax replace was 5.4%. That's significantly less than the 23% FairTax rate.
Wrong, you can't buy $10,000 worth of stuff because you have to pay sales tax (unless you live where there are no sales taxes). Also, if you buy gas, tobacco, etc. there are taxes that are built into the price (federal and state).
With the FairTax, if I get a $10,000 gift, I can only buy $7,700 worth of stuff. It's real value is $7,700.
Unless you buy pre-owned goods, then you pay no taxes. Also, if you deposit the money into an interest earning account under the current system you will pay taxes on the interest, but not under the fair tax.
I still have a choice where to spend my money to save taxes.
Wrong, you can't buy $10,000 worth of stuff because you have to pay sales tax (unless you live where there are no sales taxes). Also, if you buy gas, tobacco, etc. there are taxes that are built into the price (federal and state).State sales taxes and excise taxes aren't repealed by the FairTax so they don't enter into the equation.
Unless you buy pre-owned goods, then you pay no taxes.Right, I forgot we will all driving Pintos and wearing jeans with patches on the knees.
Also, if you deposit the money into an interest earning account under the current system you will pay taxes on the interest, but not under the fair tax.But the interest gained is taxed when spent.
I still have a choice where to spend my money to save taxes.You mean Canada?
well, except for the hidden taxes that are passed on to me via corporations and employers, but since those taxes are hidden I can pretend that they are not there. I mean no corporation or employer would pass on a tax just because they can. I'm sure that they pay those taxes fully and wouldn't even consider making that money up via me...sure.Riiiight, the hidden taxes...
No. I mean I can spend or not spend. I can give to charity or pay college tuition. I realize that the money will be taxed when spent, but I don't have to spend it. I don't have any choice but to pay income tax, or estate tax.
You're wasting your time on him.
Ah, but they do if you want to claim that you are not being double taxed on your "wealth".
Right, I forgot we will all driving Pintos and wearing jeans with patches on the knees.
Listen butthead, I have bought many pre-owned cars, as do many other people, and the oldest ones have been no more than 6 years old. My house is a pre-owned home, like many people buy, do you own a home? Did you have it built or did you buy an existing home (pre-owned)? Many people buy clothes from Goodwill, Salvation Army, etc. that are still in great shape. To make such comments shows your true intelligence.
But the interest gained is taxed when spent.
Waaa, and that is worse than the current system where you pay taxes on the intrest and then pay sales taxes when you buy something with it?
you confuse me.
you post against the fair tax and then direct me to an article that is in favor of the fair tax?..you must be one of those trust fund babies.
HR25 is a progressive tax, wealth will be taxed...and right now it isn't. The trust fund babies are not taxed. The truly wealthy are not taxed under our current system. Remember Teresa?--15% I live in her state and my tax bracket is more than twice hers and I do not even come close to having her wealth.
...the truly wealthy, those that fear the fair tax, are living off of trust funds and loopholes and frankly the rest of us are sick of carrying their (your?) weight
Ah, but they do if you want to claim that you are not being double taxed on your "wealth".Usually double taxation is considered being taxed by the same entity twice not that I pay two entities taxes.
Waaa, and that is worse than the current system where you pay taxes on the intrest and then pay sales taxes when you buy something with it?You don't pay federal sales taxes currently. We really aren't discussing state taxes because they don't change with the proposed plan.
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