A few years back I was getting ready to fly to South Africa. I don't recall exactly what caused me to pick up the FairTax book by Neal Boortz and John Linder, but I did. I didn't read it on the plane until near the end of the journey; but when I got into it, I couldn't put it down. I read it when we rode from Cape Town to the Cape of Good Hope. I read it in my hut between safaris later in the trip when we were at the Kruger game reserve. The point is that even with dancing monkeys all around, I couldn't put it down. I actually read the book. Much like Ron Paul, the Fair Tax is easy to dismiss with soundbites if you don't understand it. If not for Ron Paul, I would be supporting the heck out of Huckabee for one reason and one reason only–the FairTax. But I want to have my cake and eat it too, so here is my attempt to convince you to let me.
I really feel that Ron Paul and the Fair Tax need not be mutually exclusive and adopting it as part of his platform could not only help him win, but could also serve as a mechanism to cause even more positive change for the years following Dr. Paul's time in office. Before I explain exactly how, let me start with an explanation of the Fair Tax. If you are already well versed on this issue, just skip it. But before you make a comment accusing me of being a “Huckabee shill”, read the article.
The Fair Tax or FairTax
Under this legislation the income tax would be replaced with a national sales tax. Not only would individual income tax be replaced, but all capital gains, death taxes, and corporate taxes would be as well. The reason for this is that there is no such thing as a “corporate tax.” It sounds good to tax a corporation, but in the end all taxes paid to the Federal Government by corporations equates to money not paid to the corporations' employees or owners (shareholders). This isn't some crackpot idea, the idea for the FairTax was created by some of America's most brilliant economic thinkers.
Here are some of the things most don't understand or consider when talk of the Fair Tax comes up:
The 23 (or 30 percent depending on how you do the math) tax is not in addition to the prices we are already paying. There is already a 20-30% invisible tax embedded in the cost of goods and services we use due to our current system. By ripping out the current system and including the national sales tax, prices would remain at essentially the same level they are now.
It doesn't hurt poor people. Every American would receive a check (or deposit) called a “prebate” at the beginning of the month for the taxes she would pay in order to meet the basic necessities of life (the first of our creator endowed rights listed as being self-evident in the Declaration of Independence). Wealthy people do pay more in this system because they buy more. But they don't pay more simply because they are “rich.” If poor people choose to buy more, they would pay more on a percentage basis of their income than rich people do, but the right to consume is not a god given right and I see no reason why this would be unfair. The concept that someone should pay more because they earn more is very un-American. This system also would tax people who have inherited money and buy things with it who now don't pay much in income taxes because they don't have an income.
Another reason average Americans aren't hurt under this system is that a tax is only paid once when the item is new (at least at the federal level). The wealthy person would pay this tax on his new BMW, but Joe Mechanic wouldn't pay it on his used Accord.
Yet another reason middle income people would benefit is that they wouldn't have to pay an accountant to do their taxes each year. They also would never have to worry about an expensive audit or proving they spent what they spent in order to receive deductions or credits.
Everyone would benefit due to charitable giving. It is a mistake that people only give because they receive a tax deduction for doing so. Studies have shown that charitable giving increased dramatically when Reagan dropped the tax rates. If people have more money, they give more away. It's that simple. This giving would help more average and poor Americans in need.
People would get to take home 100% of their paychecks–not what's left after the government gets its part. They could use this money to buy stuff at essentially the same prices they are paying now.
By eliminating all federal corporate taxes we would get most, if not all of our jobs back from overseas and some new ones as well. This would create an historic economic boom. Every company in the world would have to move to the United States in order to compete due to our tax system. The ending of capital gains taxes would encourage investing creating yet more impetus for strong economic growth and even more better paying jobs where people got 100% of their pay and spent it creating more prosperity and more income for the government.
Since all of our illegal immigrants don't pay income tax but do buy things, they would then pay into the system they are currently robbing. Same with drug dealers, bookies, prostitutes, etc. Ever see a movie with a drug dealer riding in a Pinto?
The cost of collecting such a tax would be miniscule in comparison to the cost of running the IRS. You can look up the numbers www.fairtax.org, but the cost of supporting the infrastructure of the IRS is ridiculous. All it would cost for this new system is changing a number in a cash register as well as a little paperwork for each state or establishment to send into Washington. This cost is taken into consideration in the plan and the states would be reimbursed for this small cost.
People could still cheat on their taxes, but it would now require two people (the merchant and buyer) to do it instead of just one. Now the government cheats people out of money by having a code that is so complex nobody understands it so they don't take all of the deductions they could.
It would put a lot of people out of work (IRS agents, lobbyists tax attorneys, accountants, tax compliance officers, etc.) but the resulting economic boom would quickly find a way to use these bright people's minds and efforts in a way that would actually be productive to our country instead of making them cops and crooks in order to enforce our current system.
The increased money the government would receive should be enough to actually save all of the programs we have like Social Security, etc.
So what's the hold up? Well, under the current system the people who make the laws, the lobbyists and powerful corporations–not the Congress elected by the people, get special favors and tax exemptions. While paying taxes may cost these groups more than paying no taxes would, in business it's about having an advantage over your competition. And while company X may have to pay 20% under this system instead of 0% under the Fair Tax, paying 20% is still good if your lobbyists got you that rate while your main competitor has to pay 30%. Another reason is that right now the government owns all of your individual income and allows you to keep a certain amount. If you don't believe me, just don't pay your taxes for a while and see how quickly they can take everything for you in order to satisfy your tax debt. Why would they want to give this up?
This is Where Ron Paul Comes in
David Cox wrote an article recently on lewrockwell.com recently about the problems with the FairTax. The overall theme of this article is that we could end up with both the national sales tax AND the income tax. And I agree with him. It is possible which is why Huckabee supporting the Fair Tax is kinda scary. The 16th Amendment would have to be repealed in order to ensure we didn't have both. Who is the one man that you know would make sure we got rid of the IRS? Ron Paul.
Now to how adopting the Fair Tax could help Ron Paul win, why it fits him philosophically, and why it would be good for our country long term.
First of all, he could adopt this positiong quickly without selling out his principles. It would be a way to eliminate the IRS. He has said he would replace it with nothing, but he has also said that he doesn't believe with the state we are in he would actually be able to end the IRS in just a 4 year period. He could explain that he would adopt the Fairtax to eliminate the IRS and thus end a massive government bureaucracy and by implementing his reduced spending plan, eventually we would be able to end the FairTax (which would be far easier) altogether.
Politically this would be a major coup. Outside of the Religious Neo-Conservatives, Huckabee draws most of his support from proponents of the Fair Tax. These supporters are quite well organized and do things the Ron Paul camp does to support their cause like going to post offices on April 15th to hand out literature, having a national distribution list of supporters, and a list of all representatives and where they stand on the issue of the FairTax. Other than the FairTax, these people have far more in common with Dr. Paul than they do Mike Huckabee as evidenced by one of the prevailing themes of the Fair Tax–do away with the guilty until proven innocent, government owns you and all of your property mindset that comes from the IRS. Getting all of these people on Ron Paul's side wouldn't be hard and would provide a major boost for him. Not unlike Ron Paul supporters who are willing to stomach some of the issues on which they don't agree with him for the overall good of his other policies, the FairTax proponents believe so strongly in the FairTax they are willing to support Huckabee even if it means looking the other way on some of his other issues.
Ron Paul himself has suggested in interviews that a National Sales Tax may be a way to make up for the government revenues lost by eliminating the IRS. While those of us who understand Ron Paul's candidacy believe that the IRS could be replaced with nothing if the government did what it was actually legally allowed to do under the Constitution, most American voters do not understand this or believe it. Statements like these (and the work of the MSM) serve to marginalize Ron Paul's message and undermine his legitimacy as a candidate among the average American. They may not like the IRS, but they believe it has to be replaced by something.
I think this is part of the reason Ron Paul doesn't do as well among women as he does with men. Let me explain by giving a personal example. I was engaged to a girl I dated for over four years back in 2004. I'll spare the details, but we ended up not getting married. I read a lot during the period after my engagement ended about the psychological make up of women; granted, as Ron Paul himself would say, we are all individuals. As individuals we all have rights, but people do tend to think certain ways as a group–like the religious right. So while the example I am about to give absolutely doesn't hold true for everyone it is still an interesting and applicable insight.
There is one thing I read during that time that really stands out to me and is relevant here. A man will end a long relationship with a woman even if he currently has no other dating prospects. Women are quite unlikely to end a long relationship unless they have somebody else already in place. The idea of ending the IRS and replacing it with nothing is appealing to men, but not to women and people who think like them. Since our government has now become a “nanny” and most people seem not to care, it isn't that much of a stretch to conclude that most people think more like the stereotypical security minded woman than a freedom-loving stereotypical man. More women voters means more likelihood of winning the nomination and election. Having a replacement plan instead of trying to convince people of something that seems nearly impossible like ending the IRS (death and taxes, after all) is a far easier sale to make.
The biggest danger I see in the Fair Tax is that it WOULD increase government revenues dramatically. Many of you probably have a relative or friend who makes a lot of money but never seems to have any. Maybe that person is you. While Ron Paul emphasizes and runs his office the Dave Ramsey way, most people and politicians don't. There is a reason most people who win the lottery end up broke again later down the road. There is a reason people can't pay their mortgages or qualify for refinancing. The reason is their personal spending habits. And Washington D.C. has a bank statement full of NSF fees long enough to make Britney Spears look like a school marm. No matter how much they make, they will find a way to blow it. Unless the person writing the checks is someone we can trust. Who could that be? Maybe someone who returns part of his congressional office budget to the treasury each year? Maybe someone who doesn't participate in the congressional pension program that taxpayers pay for? Maybe someone who didn’t vote for Rosa Parks, a personal hero of his, to receive a Congressional Medal that would have “only cost” the taxpayers a few ten thousands of dollars? Seems like a good choice to me.
If Ron Paul would adopt the Fair Tax, he would certainly seem more electable. If he were elected and the Fair Tax was passed, he could be trusted to spend the money wisely and constitutionally. We actually could get out of debt. We could save the programs that generations of Americans have become dependent upon. Once people received their entire paychecks and could see what they had been missing, they would be a lot more likely to accept the entire pro-freedom message since individual financial freedom is the one freedom that hits home first and most. These new voters could be counted on to put the right kind of people in office for years to come, and following the example set by legendary President Ron Paul, our national sales tax could go from 23% to something in the future like 2 or 3% once the debt was paid, productivity, opportunity, and income had increased exponentially, and government had been returned to its proper constitutional levels. If the FairTax passes and a normal candidate has the checkbook, it could one day be 50% and that still wouldn't be enough. I think the FairTax and Ron Paul could be a winning ticket.
Your fellow American,
Like this Article? Thumb it.
Want to comment? It's fun. You have the same 1st Amendment Right that I do. Use it. I don't have the right to not have my feelings hurt if you don't like it.
Want to send it to a friend? Use the button below to send it to yourself first, then forward it on to avoid spam filters.
Want a date? Send pics or witty comments to firstname.lastname@example.org ;).
As always, and unlike the NFL, any rebroadcasts, retransmissions, accounts of this article, or downright theft of words or ideas contained herein, are completely okay with me when used to promote the cause of the Restoration of our Republic.Tweet
Now my job description is "Spreading Good Energy", which is also the mission and motto of our company.Writing here is one way I do my job.
Latest posts by Lester Crafton (see all)
- Obama Doesn’t Know His Job Description - January 25, 2010
- Ron Paul Revolutionary and the TSA:The Juvenile Plan - January 6, 2010
- I Love Our Government; I Detest Politics. - November 19, 2009
- Rand Paul, Are You Really a Republican? KY Wants to Know. - November 13, 2009
- How to End a Recession?Give $197,000,000 to Mexico, of Course. - December 4, 2008
- Five Minutes of Morning News Is Worse than the Flu - November 12, 2008
- If Republicans Were Smarter, They’d Be Republicans - November 7, 2008
- Why Not Obama?A Fifteen Word Answer from a Ron Paul Freedom Writer - October 31, 2008
- Ron Paul’s Campaign for Liberty and Libertarianism Will Fail…Unless - October 31, 2008
- Libertarian Posterboy: Barack Obama - October 29, 2008
- Sarah Palin Has Plenty of “Experience” - October 22, 2008
- The Bullet, The Baby, The Puppy and The Wasted Vote - October 13, 2008
- Is Barack Obama a Libertarian in Disguise? - August 29, 2008
- Barack Obama’s New Deal: The “American Promise” - August 29, 2008
- An Obama Presidency: Stage 2 of the Ron Paul Revolution - August 28, 2008
- Bill Clinton Continues to Lie at DNC - August 27, 2008
- Republican Campaign Lies Through Libertarian Eyes - August 4, 2008
- FDA’s Rotten Tomatoes and the Raping of America - July 18, 2008
- Answering Questions about the Ron Paul, Josh Hamilton article - June 18, 2008
- Ron Paul, Josh Hamilton, Baseball, Drugs, America - June 18, 2008
- Ron Paul at DUI School - March 31, 2008
- Ron Paul Freedom Writer Responds to U.S. Senator’s Email - February 28, 2008
- The Real Reason the First Amendment Came First - February 25, 2008
- So What’s Ron Paul’s Beef with the 1964 Civil Rights Act? - February 24, 2008
- Ron Paul Blames America For Everything - February 23, 2008
- Ron Paul Freedom Writer Continues Education of Obama Fan - February 18, 2008
- Ron Paul, Barack Obama’s Speech, and Common Sense - February 17, 2008
- Ron Paul Freedom Writer Educates an Obama Fan - February 13, 2008
- Ron Paul March Chip In: I Bought it-You Build It - February 12, 2008
- Ron Paul Calls for March on D.C.: How We Can Do It. - February 12, 2008
- Obama Supporter Challenge: Ron Paul Fan Willing to “Change” Vote - February 11, 2008
- Ron Paul: What Are We Going to Replace it With? - February 9, 2008
- Ron Paul Rolls On Despite Super Tuesday Primary Results - February 5, 2008
- Voting For Your Beliefs: The Worst Super Tuesday Mistake - February 4, 2008
- Ron Paul, Neocons, Chris Farley, and The GOP - February 1, 2008
- Ron Paul: CNN Debate Shows He Knows What The President’s Job Is.Do You? - January 30, 2008
- Ron Paul, Is America Really Going Bankrupt? - January 30, 2008
- Ron Paul May Be Magical, But He Won’t Disappear - January 30, 2008
- Obama Crushes Clinton in S.C.–Republicans Next? - January 26, 2008
- Ron Paul, John McCain, MSNBC Debate: Explained - January 26, 2008
- Is Fox News Killing Reagan Conservatism or Just Ron Paul and Fred Thompson? - January 23, 2008
- Friends of Fred: What Fox News Doesn’t Want You to Know about Ron Paul - January 23, 2008
- Money Bomb, Schmoney Bomb: The Real Reason Ron Paul Can’t Lose - January 22, 2008
- Why Ron Paul WILL Win Super Tuesday. - January 21, 2008
- NV Caucus Goers: 7 Ron Paul Delegate and Support Speeches For You - January 19, 2008
- Seven Support Speeches for NV Ron Paul Caucus Goers - January 19, 2008
- Are You Sick of Being Lied to By Politicians? Vote Ron Paul. - January 18, 2008
- Al Gore’s Message to Ron Paul Supporters - January 17, 2008
- Ron Paul: The Best Grand Wizard in America’s History - January 17, 2008
- Nevada and South Carolina Voters:Who Really Provides Change? - January 15, 2008
- Ron Paul, Mitt Romney, the Economy, and the Pretty Box - January 14, 2008
- Why Republicans Don’t Support Ron Paul - January 12, 2008
- If Ron Paul Hates Blacks and Jews, Count Me In Too. - January 12, 2008
- After New Hampshire Ron Paul hires Karl Rove?? - January 9, 2008
- Will N.H. Independents Flock to Obama over Ron Paul? - January 8, 2008
- Ron Paul Looks Presidential on Jay Leno - January 8, 2008
- Ron Paul Doesn’t Look Presidential on Leno - January 8, 2008
- Ron Paul: A Man Among Boys at ABC Debate (Simple explanation of Ron Paul’s stance on the Federal Reserve) - January 5, 2008
- Iowa loves Jesus and Huck; Hates Terrorists and Paul - January 4, 2008
- How Ron Paul “Shocked” Iowa - January 2, 2008
- Ron Paul’s Payday: The Moneybomb that Goes On and On and On and On - January 2, 2008
- Ron Paul, Fair Tax, Women Voters, VICTORY! - January 2, 2008
- What is Ron Paul Thinking? And Why it Doesn’t Matter. - January 2, 2008
- What is Ron Paul Thinking? - December 31, 2007
- Ron Paul. Doctor. Patriot. Martyr? - December 31, 2007
- IOWA: Ron Paul IS Electable - December 30, 2007
- Ron Paul’s Fox News Fiasco: The Spin Starts Here. - December 30, 2007
- Ron Paul Supporters Should Support Fox News’ Decision - December 29, 2007
- A Letter to Fox News: Explain Excluding Ron Paul from Debate - December 29, 2007
- Ron Paul Picks Up Two Major Endorsements - December 23, 2007
- Ron Paul fights War on Santa (and Fascism) - December 22, 2007
- Ron Paul’s War on Santa - December 20, 2007
- Questions Ron Paul Won’t Ask–But Should - December 18, 2007
- All the Money in the World Can’t Buy Friends: Why Real Republicans Don’t Support Ron Paul - December 17, 2007
- Ron Paul’sLies, Non-Constitutional Votes, and Tax Hikes - December 15, 2007
- Ron Paul Loves Black People - December 14, 2007
- Ron Paul is now the G.O.P. Frontrunner - December 14, 2007
- Ron Paul and the War on Islamofacism - December 12, 2007
- Blowback and Braveheart - December 12, 2007