Talking Points Memo (TPM) web site journalist Brian Butler characterizes Gov. Rick Perry’s support of the Fair Tax as a “zombie” radical tax plan that “starves” the Federal government. Once again, using the same tired, worn-out arguments, a left-leaning reporter is attempting to demonize the Fair Tax and its supporters. Isn’t it way past time for people to leave their biases at home and present their arguments without inflammatory, emotional complaints? C’mon brother! Let’s get real.
A demagogue is one who uses impassioned appeals to the emotions and prejudices of the populace to make a point or win support. Talking Points Memo ‘s Brian Butler writes that ” …the Fair Tax is a zombie policy that refuses to die.” Yet many would say, “With good reason. Let it live on.”
With the almost immeasurable national debt and unfunded obligations facing our country, and with no permanent fix in sight, the Fair Tax would require Democrats, Republicans and Independents to join forces and erase all Federal income taxes, payroll taxes, death taxes, gift taxes, capital gains taxes, self employment taxes and corporate taxes — and then shut down the IRS. The 72,536 pages of our current Federal tax code would be tossed into the historical ash heap of laws that became too complex for any one person to understand, ensuring that everyone is taxed fairly via a simple, easily understood national sales tax. A tax with no exceptions that encourage special interests to look for loopholes; a tax with no exclusions that extend special privileges and advantages to favored “in groups.” In other words, a Fair Tax.
The Fair Tax would do several things for the USA. Perhaps most important in solving the nation’s money issues, the Fair Tax would act as a gigantic stimulus to the economy, without a single dollar of “bailout” or Federal spending. Because it eliminates business taxes, the Fair Tax gives US manufacturers and service providers an advantage in the international market. Increased sales lead to more jobs and a stronger economy. Eliminating business taxes also makes the USA the most attractive place in the world to start a business–a fact that won’t be lost on foreign corporations looking for the best corporate environment. Foreign investment in America means more jobs. The Fair Tax also…
Allows workers to keep their entire paychecks and retirees to keep their entire pension and Social Security checks–in contrast to today’s tax law that takes back a portion of Social Security even for many on a limited, fixed retirement income. The government giveth, then taketh away under current law. Pays a monthly check to all heads of household to offset taxes paid for basic living expenses. This “prebate” eliminates taxes on rent, mortgage, food and other needs, assuring that no American pays taxes on the necessities of life. Furthermore, buying used products–cars, homes, business equipment–is not taxed at all. Brings transparency and accountability to tax policy. Rather than fight through tax codes that assure special treatment for favored groups, the Fair Tax treats everyone alike, closing loopholes and bringing equal treatment to all. No more “favors for the rich” as some like to characterize our current tax code. Abolishes the IRS as we know it, eliminating billions of dollars spent each year by consumers and businesses forced to track and record every aspect of their financial lives so they can prepare accurate tax returns each April 15th.
Butler goes on to characterize the Fair Tax as “…a national retail sales tax of 30 percent, though using sleight-of-hand its supporters claim the rate would be 23 percent.” Not only does the Fair Tax actually reduce (slightly) the cost of goods and services from today’s prices, the 23 percent rate simply replaces the built-in tax rates that exist under the current Federal tax code. The only sleight of hand occurs when one uses the tired “30 Percent Fair Tax Myth” to score an ideological point.
Talking Points Memo is not alone. The Citizens for Tax Justice, another liberal organization, claims that Perry’s Fair Tax support ” would result in substantial tax increases for the poor and middle-class and significant tax cuts for the rich.” Once again, a closer look reveals that effective tax rates actually increase for families in upper income brackets, and decrease for those in the middle and lower brackets.
Who’s right? Who’s wrong? Who has an ulterior motive for keeping the current system — or changing it. And why? Those are the questions Americans can ask to find the truth. Take some time to study the Fair Tax. Read the books. Learn what both sides are saying and pay special attention to the numbers.
In these days of hyper demagoguing, inflammatory speech and almost constant partisan misrepresentations, it’s up to each of us to set emotions aside and begin using logic and reason to decide what we’ll support. Let’s allow the fear mongers in the media and elsewhere to fade away in the face of an informed electorate that decides what’s best for America.