dr. fairtax
by Anthony Marenna
Published: January 8, 2008
Imagine a day when US citizens actually control their governments’ pocketbook. A day when reigning in the irresponsible spending habits of politicians is as simple as snapping your wallet shut. The exciting part of the scenario is that if either Ron Paul or Mike Huckabee has his way, that day might not be very far away.
As of late, Republican candidates Mike Huckabee and Ron Paul have been the most prominent advocates for the “Fair Tax,” a national sales tax that would replace the income tax. It would, as Huckabee says, “put the IRS out of business.” Unfortunately, the same Americans who, election after election, seek change and “a new way forward,” seem to be having a tough time accepting the Fair Tax as a real option for change. So, without further delay, let me explain the merits of the Fair Tax, why it is superior to our current “Unfair Tax” and whether or not Ron Paul is insane.
Let’s begin with Ron Paul. Yes, he is. But there is a method to his madness. First, take a look at the IRS. We all hate it. We detest the hours of filing. According to Huckabee, we as Americans are more scared of being audited than we are of being mugged. And he’s probably right. But what can we really do about it? The IRS takes our money and the politicians spend it on whatever they want. The only control we have is in the voting booth.
Even then, depending on which type of politician we want to depose, it takes from 2 to 4 to 6 years to get our hands on the controls. And what, might we ask, are the taxpayers charged for the current collection system? According to UncleFeds Tax Board, the IRS employs over 100,000 people and requests a yearly budget of $10 BILLION! That is taxpayer money! In addition, according to the US Treasury, the IRS’s poor organizational structure allows for $290 billion in taxes to slip through the cracks and never get collected.
O.K. So the IRS is annoying. You knew that already and I still havn’t answered your question: What are the merits of the Fair Tax? Well just think about it. It’s a sales tax. That means you take home your entire paycheck and have full control of your money. If you don’t want to pay a lot of your hard earned money to the government, you spend less. But when you do pay taxes, it happens at the register, just like state sales tax. The odds of getting ripped off by a corrupt and inefficient bureaucratic organization are greatly reduced.
Now take a look at how that might affect our economy. When the amount of taxes paid is based on how much people spend, savings increase. People are less willing to make their purchases by credit because they will be paying a LOT more in taxes. When savings go up, there is no need to bail the country out by creating money and artificially lowering interest rates. And what happens? THE DOLLAR REGAINS ITS VALUE! I kid you not.
So next time you see Ron Paul descend into a maniacal rant about the Fair Tax, just stop and listen, even if it’s for just a minute. Why? Because he’s just like you. He wants to see a day when his dollar is worth something, a day when reining in the federal government’s wild spending is as simple as waiting until next month for the new TV.
If voters are really looking for “a new way forward” then replace IRS with Paul/Huckabee in ‘08.
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