Well, it has been over a week since my last post. This is wholly because I took a little vacation. The family went to, what my wife likes to call the Edge I, for Easter, mainly. We took a couple of extra days to get some paper work done to get the wife a new ride. She has pictures of it on her blog. We also visited Grandma a couple of times (this would be the wife's grandma). She won't let me get away without calling her Grandma. She has been in the hospital for quite a while now.
A lot happened while we were gone. I have finished the first book about the FairTax. Now, I understood the concept before, and was on board with it, but, now I totally understand it. It is a bill that is in the Senate and the House that will replace our current income tax system with a national sales tax on all new goods and services at the retail level. The tax, as it stands right now would be 23%. Now, before everyone gets all in a huff about me wanting everyone to pay an additional 23% on everything, many studies have shown that, due to the current tax structure, we already pay, on average, 22% taxes on everything we buy that are embedded in the price. These are taxes that the corporations have to pay. Under this new plan, that 22% would go away, so, the amount that we pay would be about the same. Besides, if we stop having to pay income tax, we will have more money to spend. Plus there is a prebate to help defray the costs of the tax on the necesities of life, up to the poverty level.
Now, one of the biggest advantages of this, would be that every person who spends money in the United States would be paying taxes. That means that everyone who gets paid under the table, or drug dealers or anyone else who has income that is not taxed under the current system would be paying taxes when they buy stuff. Even immigrants, both legal and illegal would be paying taxes. Not a bad deal for us.
I understand why there is so much opposition to this idea. The politicians in this country have made a killing manipulating the tax system to make it look like they are doing us all a favor by cutting our taxes, and shifting the tax burden to the rich. But, if you truly take a look at it, the top 5% of wage earners pay over 90% of the taxes to the government anyway. So, any tax cuts would be for them anyway, NOT US. The sooner people understand this, the sooner they will tell their politicians to pack sand with manipulating the tax code for us.
Besides, has anyone actually looked at the current tax codes? It is huge and would take so long to read that there is no way anyone could know everything that is in there. The FairTax, on the other hand, can be explained in a very short book. I truly don't understand why there is not more support for this. Anyone can understand it and it would be much better for everyone.