Your Opinion: Fair Tax mischaracterized
Sunday, February 13, 2011
Tony Smith, (“Fair Tax Characterized as ‘bait and switch’”) uses trigger phrases as a tool to manipulate fear to overcome reasonable inquiry. Phrases like, “rich become richer,” “on the backs of the middle and lower class,” “so-called Fair Tax,” and “give back to those who made it possible” do nothing to further thoughtful analysis of Missouri Jobs and Prosperity Act HJR8.
Mr. Smith, James Moody, Mr. Hoey (Missouri Catholic Conference) all mislead readers by using the term Fair Tax when commenting on Missouri tax reform.
This is poor reporting because it does not name legislation or give a bill number that could then be researched by readers.
“Give back to those who made it possible” comment ignores the reality of private individuals taking risks with their own money to start the job-providing corporation. They then sold stock to others willing to take risks with their private money.
Before there could be a work force, there had to be someone willing to make that job possible.
Roosevelt and Karl Marx both championed the income tax. In 1848, Karl Marx, father of Communism, introduced the progressive income tax in his book, Communist Manifesto as the second plank of 10 listed for the destruction of capitalism and the growth of communism.
Does our low Missouri income tax structure impacts economic growth? “Rich States, Poor States” published by the American Legislative Exchange Council, states,“When you add Missouri’s corporate taxes to the federal corporate income tax of 35 percent, businesses looking to invest in Missouri face some of the highest tax rates in the industrialized world.”
Chris Edwards, director of Tax Studies at the Cato Institute recommends, “The No.1 policy that I would propose to state governors to get their economies moving to grow out of this recession is to eliminate their state corporate income taxes.
“State corporate income taxes are really the stupidest tax in America. They distort businesses. They scare away investment both domestic and international investment and they hardly raise any money anyway. So states don’t need them and we have half a dozen states that don’t have corporate income taxes and their economies do pretty well.”
We need jobs in Missouri. Reporting on tax reform needs to be done intelligently.