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Responding to Criticisms of the Fair Tax Bill and the Republican Tax Cuts

by Joshua Minton

I received this e-mail last week from a fellow high school alum and I finally found a nickle of time that I could spend on replying to it:
Haven't had a chance to read much of your site yet, but a couple things caught my eye and I have some thoughts for you to consider. There seemed to be a common theme of support for the Bush Tax cuts and support for Neal Boortz Fair Tax system.

I know you probably have way more to read now than you can keep up with, but if you are going to make commentary on federal budget items, you should make a better effort to educate yourself on the facts.

I highly recommend reading everything that comes out of the Congressional Budget Office

As well as another site that interprets that data (admittedly partisan) and puts clearer perspecitive on it.

Be sure to read the slide show, putting tax cuts into context.

The bottom line is this, I am all for returning money to people at the same weighted percentages as it is taken in, whenever there is actually money to give back. But having to borrow money year after year to put it in the pocket of your richest people is complete insanity. A good percentage of that borrowed money is from foreign governments. Now you tell me how the hell it makes sense to have to borrow money from China to fund a new tax cut that Bush wants for rich people.

As for the "Fair Tax" thing, that has so many holes and flawed assumptions in it, I can't even get into it here, but I encourage you to look for the opposing viewpoints and understand them. It's a ploy to take the current tax structure as it exists today and shift more burden away from the rich (as most Republican tax ideas are). A noble concept, except when you take into account the fact that there HAS to be a fixed amount of money coming into the system each year, if you are taking money out of what is being paid by the richest people, it has to be coming from somewhere else.

Of course with the fair tax idea, you have no where near any guarantee as to what your tax revenues will be for the year, it puts it all in the hands of the people instead of the law. What if we fall hundreds of billions of dollars short, I guess we are just supposed to borrow it? Hell, that's what we do today, so I guess everyone is already used to that no matter how wrong it is.

Anyway, read up for yourself and form your own opinion, but keep the perspective that having to borrow money to make up for policies in a tax system is WRONG. Deficits of this magnatude are BAD for the economy in the long term. The % of debt we have related to our GDP is rising every year, this is BAD. It's too bad that most of the US doesn't realize this, because it is a slow moving problem that is really going to bite us in the ass 10-20 years from now, and it's only getting worse every year because we continue these ridculously stupid tax cuts.
I don't think we have a disconnect here. I agree that the problem is totally with the spending on the part of Congress. Imagine if we held Congress to the ninth Amendment and didn't allow them to run buck wild with the public's check book.

But the present system of taxation is really nothing more than a system of wealth redistribution which started as a weapon of class warfare back in the early 1900s and has pretty much remained the same ever since then.

I believe that the Fair Tax proposal, despite all its theoretical flaws (we'll never know the execution flaws until it's executed), is the best model of taxation because it is dependent on the actual purchasing of goods and services (first time only, no used goods get taxed under this plan).

Those who think in terms of "rich" versus "poor" (when in reality many people considered rich now were poor once) should be more than pleased with a taxation system that not only leverages greater taxes against those who buy higher priced frivolous items (the wealthy), but also reimburses every family for the basic cost of the necesseties of life.

I don't think that traditional tax and spend Congress can ever reproach the Fair Tax proposal except by ignoring it. But I absolutely agree that the root cause of the problem in our country is the wild-haired congresspersons set loose in a free-for-all with the public debit card in their hands.

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