Your Opinion: Fair Tax would restore economy
Sunday, August 21, 2011
How we can regain our AAA rating and bring back the American Dream. Solution: Past the Fair Tax (HR25-S13).
In 2005 the framers of the Fair Tax legislation knew this recession was coming, because the United States would have problems if we continue using income taxes to fund all of our government’s expenditures. They knew, when we evolved into this global market of modern technology and high speed communications, we would have to discontinue the use of all-income related taxes because they add directly to the cost of our products. We would have to replace the income taxes with a consumption tax that does not add to the cost of our products. This change in our tax structure on how we fund all of our federal government’s expenditures would lower the cost of our Made in America products by 55 percent on the world market (35 percent corporate income tax plus 20 percent embedded manufactures income tax.) This would make our products less expensive then the third world countries with their cheap labor and would make our products the number one best seller in all of the retail stores around the globe.
If the Washington, D.C., legislators would have implemented the Fair Tax in 2005 when it was introduced to Congress, we would not be in this recession now and our economy would have been strong enough to avoid the 2008 housing bubble and financial meltdown.
The reason the Washington, D.C., legislators shelved this Fair Tax legislation, they didn’t want to lose the power that they accumulated by manipulating the IRS tax code to create loopholes for special interest groups and large manufacturers in exchange for large political contributions at re-election time and they are not concerned about the billions of dollars of uncollected tax revenues.
With the Fair Tax, all businesses are not taxed. Businesses the IRS with its excessive taxation have caused to leave the United States will return. They will, because no other country offers a tax-free business climate and trillions of dollars of offshore capital will return immediately and all businesses will follow. The economy and the jobs market will skyrocket and our GDP and our export markets will double or triple in just a few years. The United States will be the business tax haven of the world.
We do not want any band aid cures; we want a permanent cure that hits the core of our problem that will last for centuries to come.