Your Opinion: Fair Tax would grow economy
Monday, April 16, 2012
“How does something immoral, when done privately, become moral when it is done collectively? Furthermore, does legality establish morality? Slavery was legal; apartheid is legal; Stalinist, Nazi, and Maoist urges were legal. Clearly, the fact of legality does not justify these crimes. Legality, alone, cannot be the talisman of moral people.” --Walter E. Williams, columnist, professor of economics at George Mason University.
Income taxes, forced on citizens who risk heavy fines, jail time, loss of businesses, property and health if they refuse to pay, are immoral. Even when paid, the IRS can debate the return, or claim the return was not filed. Then a real-life nightmare begins which can end in bankruptcy, severe depression, stress and even suicide as citizens try to prove their innocence to a bureau notorious for incompetence.
HR25, the FairTax, ends the nightmare as well as the corruption of politicians working with industry to create tax loopholes in exchange for campaign donations and votes. (See Ken Hoagland’s book, The FairTax Solution.)
Taxes placed on wealth production (the income tax) are destructive to economic growth. The cost to be in compliance drives many of our best businesses overseas where taxes on production are less. High compliance cost and uncertainty about tax law changes also causes companies to hang onto capital out of fear of the unknown and possible future higher taxes.
Money not put to work is not growing the economy. When companies, particularly small businesses, can plow the saved compliance costs resources into growing the company, then we have economic growth. Additionally, when consumers have the choice as to when, where and how much to pay in taxes, they can decide whether or not to purchase an item or service for private use based solely on their needs and ability to afford the item. Please look at the research done by Beacon Hill http://www.beaconhill.org/FairTax2007/EconomicEffectsFTBHICGEModel4-30-07.pdf
The FairTax would double the economy in 15 years. What will the current tax code do? Having the highest corporate tax rate in the world is not a job growth plan.
For real economic growth, pass HR 25.