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DynamicTrends.com
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DynamicTrends.com
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Taxes, Inflation, the Fair Tax and the Economy |
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Listening to all of the chatter after the stock market plunged 464 points today (January 22, 2008), I had to sit back and scratch my head. Why? It seems that even the people whom I thought had a grip on what’s happening, don’t seem to have a clue. Among them are Lou Dobbs and Glenn Beck. It could be because they have some kind of vested interested in today’s fall, but I tend to think that they have been preparing for the inevitable. I could be wrong about that though, since they were all at least 3-5 months behind me in sounding the alarm. Maybe they simply don’t want to face reality. Or maybe even, and this is my guess, that they believe that the political candidate that they have chosen to get behind, has the answer. I just can’t figure it out. Sure, they repeat my analysis of the economy, primarily that the government is broke and that the economy is in trouble. Regular visitors to this site already knew that much. No, these people who were my hero’s, are even beginning to sound like their candidates. Just so you know, I have my own choice and I made my choice public with my front page endorsement. But I refuse to let politics cloud my judgment. The two names I mentioned earlier had some influence in my endeavors, so it saddens me to say these things. But I won’t let them cloud my judgment either. I listened to both of my hero’s today in total disbelief, as they interviewed guests. One after the other, their guests followed their talking points like sheep. Just throw money at the problem and hope it goes away they said. Some even implied that throwing more money at the problem will actually solve the problem. We live in dangerous times. They obviously do not visit this site or they would know that what they suggest is highly inflationary and will only make the problem worse. It might work for a few months, but when things turn around, it will be just that more severe. My biggest question is that, after the economy is in shambles with 25% unemployment and 20-25% inflation, with 10-15% of homeowners on the street and so forth, with banks closing their doors and businesses closing in droves, who is going to pay the taxes then? Who is the government going to count on to keep the economy going then? I don’t believe they really care, do you? They have pretty secure jobs and a steady income. And only God knows how much if any, they get from lobbyists! If they cared, they would have seen this coming. I did, and I don’t have access to the resources that they do. There is only ONE way that the citizens of this country can get a grip on what’s happening and what’s about to happen. I first learned of the Fair Tax while listening to Glenn Beck in the course of my regular employment. And poor Lou Dobbs, well he knows the problem, but like Glenn, he doesn’t know or won’t admit the solution. Like before, when I led the way in sounding the alarm, I guess I will have to lead them to the truth of the matter as well as the solution. Along with my regular visitors, both of these guys know the primary causes so it shouldn’t be too difficult to show them the way. They know for instance that the “money is the root of all evil“. Yep, and here’s rundown, for those who don’t frequent this site. The U.S. Dollar Index has fallen from about 120 to about 76 since late 2000. For those who are mathematically challenged, that’s 44 points or 36%. Inflation since then is also approximately 36%. I’m sure that the Federal Reserve would dispute that figure. As a matter of fact, they report only 21% inflation since then. But then again, their way of figuring things is the reason we’re in this fix in the first place. You must be familiar with their bogus reports that there is no inflation “when you exclude everything that is going up in price“. Mind you, I’m not blaming them, since other powers are not only responsible for their existence, but need and use them on a regular basis for their own purposes. We all know that when our government needs money, they simply print it, after handing over interest bearings bonds to the Fed, in exchange for the okay. With a wink and a nod of course. The whole scenario gives a new meaning to the phrase “laughing all the way to the bank“. The problem is much larger in scope, but we can get a handle on it if we attack the basics. The basic problem lies partly within the last two items, the falling dollar and government spending. But more importantly is the tax system that we have in place. Under the current system, citizens have literally NO control over government spending. You can complain to your elected representative until you’re blue in the face, but because they have become one of the elite, they no longer have to justify their decisions to you and they don’t. They come up with lame excuses such as, if you don’t throw money at the military complex, you’re against the troops. Forget the fact that the war may not be a just war or a constitutionally sanctioned war that we shouldn’t have gotten into in the first place. If the citizens had control, they would be less likely to engage in these types of wars. Or how about this one, “changing the tax system would shift a heavier burden to the poor and middle class“. What a load of unadulterated crap! The poor and middle class already pay MOST of the taxes. Most of the wealth is in the hands of business owners or family’s who control businesses. No problem there. More power to them. But do you think for a minute that the prices of the goods and services that they produce and sell don’t already include the taxes that they know they must pay? You’re pretty naïve if you think that wealthy people pay taxes. Like I said, more power to them, God bless them and all that. The point I’m trying to make here is that the citizens must have some control over government spending as they do with their own. The best way for them to do that, is to demand reform of the tax system. The Fair Tax is the best alternative to the system we have now. How about volunteering to help me out? I need a brain trust to help plan strategies that will move our illustrious elite off dead center and pick a side. Economic catastrophe or fiscal discipline and a reformed tax system One last thing. Here is an example of the Fair Tax in action: Dianne grosses $500.00 per week. She has 15% deducted for federal income tax, 7% for Social Security and Medicare, and state taxes which wouldn’t be affected here, from her paycheck. That leaves her $390.00. If she buys a $100.00 item under our current system, she has $290.00 left over. Dianne’s government doesn’t care if she has needs, so they don’t help her out. Dianne grosses $500.00 per week. She has 0% deducted from her paycheck. That leaves her $500.00. If she purchases a $100.00 item under the Fair Tax system, but with 23% tacked on. The item will now cost $123.00 and she has $377.00 left over. Also, the Fair Tax plan would require the government to send her a check each month for necessities, whether they cared or not. If Dianne is single, she would receive about $19.50 per month. (based on 0.023 x $10,210, which is based on the poverty line, per the FairTax). By Michael Scoglietti Copyright DynamicTrends.com
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