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The FairTax Plan, the Wealthy and the Middle Class |
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I recently received an email response from Sherrod Brown in response to my support of the Fair Tax Plan. It is apparent that the facts won’t convince him that he is wrong. I feel compelled to respond publicly. He was correct, in that “the bill would repeal the existing federal income tax system by eliminating the individual income tax, the corporate income tax, payroll taxes, the self-employment tax, and the estate and gift taxes. In their place, it would impose a 23% national retail sales tax. Each family would get a rebate on their spending up to the poverty level. Benefits from Social Security and Medicare would not change. They would just be funded by the sales tax revenue rather than the payroll tax revenue.“ What he missed in that assessment was that taxes would actually decline from 23% as time goes on, for two reasons. First and foremost is the volume of taxes that will be collected from drug dealers, illegal aliens, black marketers, those involved in other criminal activity and those working “under the table“, who currently don’t pay taxes. Paying at the cash register would make it impossible to avoid taxes. Or does Senator Brown think they should be tax exempt? Second, the citizens would gain control over government spending because government spending and not citizen spending would become more transparent. In other words, our government would be held more accountable for spending on everything from waste to war. The FairTax would allow every citizen to see the actual burden of government taxation in every purchase they make. I suspect that is the real reason Democrats in Washington don’t support the plan. Senator Brown insists that “the wealthy would avoid paying taxes on much of their income because a retail sales tax would not tax dividend income, or income from the sale of stocks and bonds.“ Oh really? How exactly would they avoid paying the tax when it is added onto the purchase of any new goods purchased? And don’t middle class people buy stocks and bonds? He then stated that “middle class families would pay taxes on nearly all of their income because these families may not be able to save nearly as much after paying for food, clothing, housing, and educational expenses.“ Good thinking Senator. Like we don’t already pay taxes on 100% of our earnings! Oh yeah, I forgot to tell him I have a lot of experience at being middle class. Just so you know Senator, After working and paying through the nose for more than 40 years, I already have a hard time paying the food bill, I can't afford to send my daughter to college, and I can't afford healthcare for my wife, who is recovering from cancer, let alone save money. The middle class has already been carrying the burden of today’s inflated prices, with wages that haven’t kept pace for the past 6 years. So how is the current tax system better? I’m a blue collar worker who in my lifetime earned $873,503, in 41 years of working. I paid income taxes of $146,569 and $68,300 into Social Security and Medicare, for a total of $214,869. So please don’t tell me that the middle class is better off with the current tax system! And talk about inflation from wasteful government spending, whew! A mere 637% since 1966. The jobs and the revenue from the manufacturers who moved oversees would come in awfully handy about now, wouldn‘t it? Great system we got now, huh? Getting rid of our current antiquated and oppressive tax system might just lure them back, don’t you think? It would definitely encourage business owners to expand or pay higher wages, because they would no longer be burdened with the taxes that they now pay. But what if you wanted to start your own business instead of working for someone else? Under the FairTax plan, anyone who wanted to, could use their brains and whatever skills or special knowledge they have, to start a business and make as much money as they wanted to. That is unless Senator Brown thinks that middle class people are stupid or can‘t think for themselves! Currently, if you start a business, 14.5% comes right off the top of every dollar earned, just for social security. Add income taxes and all the other taxes, and it’s really not worth starting a business, is it? No, the real burden is not having the freedom to make as much money as you want to make, without government confiscating a large chunk to use on War and hundreds of wasteful projects. By Michael Scoglietti Copyright DynamicTrends.com
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