Okay this will be an occasional post where I will try and define what I think our government should look like or at least the basis for my own political party. I'm so frustrated with what the Republican and Democratic parties have become that I can not in good conscious align myself with either side. While I like the Libertarian ideals for some things, they still come across a little too quirky for me to get behind 100%. Of course some of my thoughts will be out of line with many persons also, but hell it's my made up political party and I can start it however I want.
The underlying foundation for my party will be that we have to try and do the right thing no matter what the person cost is to ourselves. The right thing will not be politically correct at times, but we are striving to make the USA a stronger and better country to leave to our children and their children.
As I said I will try and outline what I think the party should stand for and if I receive any commentary that makes me rethink my position, the position will be changed to reflect those better ideas.
The first thing that I believe needs to be outlined is that the government needs to be smaller. The government can not take care of everybody and even well intentioned ideas can have bad consequences.
We can not have universal health care, it will bankrupt the country, we can bring sanity back into the medical field. One change is that if a doctor is willing to settle for a lower price with a health care company that same price has to be automatically offered to an uninsured person. I have had blood work done that had a bill for over $600, my insurance company disallowed over $450 and paid the bill and they were fine. If I didn't have health care I would have had to pay the full $600 or tried to negotiate the bill down on my own and would surely have paid more then what my provider paid. This is wrong. I have been a business owner of my own comic store and essentially had nothing but a disaster plan health care (the first $10,000 in expense were mine, after that my insurance would kick in). It makes no sense that those who do not have health care pay more for services provided then the health insurance companies. Those without are just being made to pay more of a tab and probably don't even know about negotiating the payments being made.
The "No child left behind act" needs to be abolished as does the federal government involvement in education. Education is a local issue and should be addressed at a local level. This is just a waste of taxpayers money and only serves to add another level of bureaucracy on an already over burdened school system. Also the whole insidious record keeping going on for all the nations children by the military within this act has a ugly feel to it that makes me see conspiracy theories.
Another way to reduce government is a new codification of the law. The law today is so voluminous that no one can understand or even knows of all the laws on the books. Remember that we have ignorance of the law is no excuse if you break the law. We are all ignorant of the law and are breaking laws everyday, which allows the government to just decide when they want to arrest or charge you with a crime. The rationalism that has lead to 500 page laws being passed is insane. Ambiguity in the law is fine and the courts can decide what is within the purview of the law or not. That codification should be able to translate our federal laws into less then 10 volumes of 500 pages. I believe 5,000 pages of federal law would be more then enough. Plus we can wipe off the books many old laws that have no true application in today's society.
The IRS can be almost eliminated by getting rid of the tax code. Except for a few tax deductions for some basic things we should all be paying a flat federal tax. I'm even for increasing that percentage for the higher income producers, but lets get rid of the tax shelters for everybody. Mortgage interest for the home you live in, deductions for children, medical expenses and education expenses and that's it. The rest is crap. These basic deductions are to help lower and middle income people to be able to afford a better life. But higher incomes can afford to pay more to the country that has afforded them their standard of living. So in today's dollars maybe a 12% flat tax, with the rate going up to 20% for any earnings over $150,000 and 35% for any earnings over $300,000 and 40% for any earnings over $1,000,000.
There are many other areas that we need to reduce government but I will address that when I tackle some other planks for the Silver Age Party Platform. The basic theme is less government and more fiscal responsibility as plank #1.
Hi
ReplyDeleteI am a grassroots volunteer with the FairTax, and I read with interest your comments on taxes. I would like to respond to some of your points.
The IRS can be almost eliminated by getting rid of the tax code.
The FairTax is a tax-replacement plan that replaces all federal income-based taxes with a one-time single consumption tax on retail purchases of new goods and services. The proposed legislation is House Bill 25, currently in the House Ways and Means Committee awaiting debate. It achieves the first of two goals; annulment of all sections of the IRS code that define and implement all current income-based taxes. It deactivates the tax code and replaces it with the FairTax. The second goal is to repeal the 16th amendment, thereby preventing creation of another income tax. The legislation to start that process is House Joint Resolutions 14 and 16.
See the Americans For Fair Taxation website at www.fairtax.org for details.
Except for a few tax deductions for some basic things we should all be paying a flat federal tax.
We started out with almost exactly that in 1913. Contrary to the visions and wishes of the Founders, politicians managed to establish an income-based tax system. This simple tax code mushroomed into a maze of deductions, exemptions, exclusions, credits and rules so complex that few people understand it. It grows more complex and expensive with every change to the code. Any simplification of the tax code would be temporary at best, and the complex mess we have now would be back in a few years. That's exactly what happened after the 1986 Tax overhaul. The reason is that power (tax legislation) is on government’s side. We the people can only stand by helplessly and cope with the tax laws that Congress churns out.
I'm even for increasing that percentage for the higher income producers.
Under the FairTax, the rich will pay more tax because they spend more. As for the poor and middle classes, the FairTax has a provision (the prebate, available to all legal residents) that makes life tax-free for each household up to its poverty line. This prebate, together with ending the highly regressive payroll tax, will provide badly needed tax relief for middle and lower class citizens.
…but let’s get rid of the tax shelters for everybody.
The FairTax does that. No tax shelters are necessary. Income is not taxed. The wide consumption base ensures that everyone, including those here illegally, pays his fair share.
Mortgage interest for the home you live in, deductions for children, medical expenses and education expenses and that's it.
Since two out of three tax filers don’t itemize, deductions don’t make that much difference. Besides, all the deductions, exemptions and credits in the world can’t do what the FairTax does: give everyone a whole, untaxed paycheck or retirement income. It returns tax control to our side because we control our spending.
…higher incomes can afford to pay more to the country that has afforded them their standard of living.
Again, under the FairTax, the rich will pay more tax because they spend more. With the economic growth projected under the FairTax, everyone's standard of living can only increase.
The Founders of our country were explicit: no direct taxation of income. We can return to their vision by completely scrapping the income tax and replacing it with the FairTax.
Chad Sargent
Raleigh, NC
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Chad - This is exactly the type of plan I can get behind and your right it elminates what would grow into a convoluted mess again.
ReplyDeleteWhat would the projected federal sales tax rate be? Does this generate more or less income then we currently get? How does the prebate work?
I'm being lazy but not looking it up this morning, but all in all sounds like a plan that my party can back and something worth writing my legislatures about.
THANKS!
I also am a huge fan of this plan.
ReplyDeleteThe FairTax imposes a 23% sales tax on the total value of the purchase (a comparative rate to income taxation). The tax would be administered by the States and the prebate would be distributed by the Social Security administration - most would get it via electronic transfer. It untaxes spending up to the poverty level and creates a very progressive effective tax rate on consumption.
It is revenue neutral so it would generate the same amount of income - this plan is for tax reform and does not get into tax cuts. However, they way the system works it would make all taxes transparent. The economic factors to the country are huge. Take to the time to go to FairTax.org and read up on it - there is tons of research.
You mentioned the Libertarian party and I also think they're a bit quarky - their hard core (classic philosophy) position on taxes is that there should be none - only voluntary contributions. Here is a great paper that debated a guy from the Mises Institute on that topic - it is good as it discusses how the FairTax will help limit the growing government. http://www.fairtax.org/pdf/Honk_if_you_Oppose_a_Fairer_Tax_11-2-06.pdf
The FairTax is the most cosponsored tax reform bill in congress with 61. The closest flat tax bill has 6. Surprising as most have not heard of the FairTax.
- Jeff
Jim
ReplyDeleteThe FairTax statutory rate has been calculated and verified as 23% inclusive in prices of all new goods and services.
As for wages, the forces of supply, demand and competition of the free market will set those. It comes down to purchasing power, which will increase along with economic growth.
Add your voices to ours by visiting www.fairtax.org and signing petitions and contacting congressmen. Info on how to contact your reps is on www.fairtaxscorecard.com. Join the yahoo Fairtax roundtable forums:
http://groups.yahoo.com/
Stay informed and write Congress regularly. Pass it on. Welcome aboard!
Chad
Okay I agree with the Fair Tax, but with a 23% tax rate it will be a hard sell to the public and it would really depress the economy with retial sales going through the floor. How do we monitor foreign sales and the internet stuff.
ReplyDeleteI understand the economics of it and the fact that prices should really come down, making the impact minimal, but the psychology of this would be hard for the average American to accept.
To get the public behind it will be a big education project.
Again I'm all for it, but I think it would be a shock to the US economy for at least a year. Also we would have to get corporations to back lower prices immediately.
Your support is welcome, but you really must take time to learn the facts by doing your own homework. The statements you made in your last post are all in error.
ReplyDeleteAll the information you need is on www.fairtax.org and The FairTax Book.
www.fairtax.net has a good tutorial.
Regards,
Chad
Jim:
ReplyDeleteYou are very astute; there is a certain amount of "sticker shock" with the FairTax proposal. Two comments are in order in that regard.
1. The FairTax is revenue neutral, meaning that it raises the same amount of revenue as the taxes that it replaces (when measured statically). Therefore, to the extent that the FairTax makes the taxes that we all pay more visible, supporters believe that will serve to exert downward pressure on the rate.
2. Some shifting of the mix between consumption and savings/investment would be viewed by virtually all serious economists as beneficial to our economy. Right now, the individual savings rate in this country is negative. Some earlier studies have shown that there would be an initial drop in overall consumption, but that the rate of growth in consumption would be higher than under a continuation of the current system because of the faster growth in the economy. By about year 4, consumption would be back up to where it would have been under a continuation of the current system and from that point forward, it would be higher. Even in year 1, consumption of US produced goods would be higher than under the current system because of pricing shifts; the decline in consumption is comprised 100% of imports.
The FairTax would have major beneficial effects on the savings rate and the trade deficit, both of which are major economic problems which are exacerbated by the current system. In addition, because the "sticker shock" would (1) exert downward pressure on the rate, and (2) work to increase savings and investment levels, we view it as positive overall.
WRT my previous comment on the checks and balances associated with consumption taxes, one of the founding fathers said it better than I can.
ReplyDelete"It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty, that, 'in political arithmetic, two and two do not always make four.' If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them."
Alexander Hamilton in Federalist #21
I'm a supporter of the HR25 bill, too. The current system is a ball and chain on the US economy, that wastes like $900 per man woman and child. We're "tried" to fix it too many times. Let's REPLACE it. Under the HR25 plan, expenses will NOT go up. Take home pay will NOT go down. We'll all be able to buy the exact same stuff we ever bought. Nothing will change except we'll never again touch another tax form. The poor will still live tax-free due to the prebates. Illegals and illegal activities will finally be taxed. There will be far less oportunity for cheating. The only loosers are politicians and lobbyists.
ReplyDelete