Previous editions: Change In Politics#2, Change In Politics#1

With the new Congress coming into power shortly, what types of new legislation would you like to see happen? I know you can think of a ton of things you would personally like to see, but what are your main ones that would benefit a lot of people?

Here’s my third proposed change that I would like to see happen with the new government in power.

I would love to see FairTax get a true debate on the Senate floor. With Republicans always wanting to lower taxes and then increase our deficit, we are pushing the tax burden to us/the youth. I am sick and tired of older people (government officials) dictating the ultimate demise of our country’s future for present political gain and reward. We ,the youth, have a lot more time on this planet and will be suffering the most because of present legislation. We need a tax reform that will decrease our deficit and not destroy our present responsibilities such as: social security for the elderly and Medicare for the ill. Taxes NEED to increase so our future seems a little brighter. Yes, most people don’t want to see taxes increased, but we can’t live on “fake money/credit” for the rest of our lives. The debtors will come to us eventually, and ask for their money. We MUST take away the federal government’s open line of credit and start worrying about problems here at home.

What do you think??

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What Happened?

At first I thought this was funny… then I realized the awful truth of it. Be sure to read all the way to the end!

• Tax his land, Tax his bed, Tax the table at which he’s fed.

• Tax his tractor, Tax his mule, Teach him taxes are the rule.

• Tax his cow, Tax his goat, Tax his pants, Tax his coat.

• Tax his ties, Tax his shirt, Tax his work, Tax his dirt.

• Tax his tobacco, Tax his drink, Tax him if he tries to think.

• Tax his cigars, Tax his beers, If he cries, then Tax his tears.

• Tax his car, Tax his gas, Find other ways to tax his ass

• Tax all he has Then let him know That you won’t be done till he has no dough.

• When he screams and hollers, then tax him some more, Tax him till he’s good and sore.

• Then tax his coffin, Tax his grave, Tax the sod in which he’s laid.

• Put these words upon his tomb, “Taxes drove me to my doom…”

• When he’s gone, Do not relax, its time to apply the inheritance tax.

COMMENT:

Not one of these taxes existed 100 years ago(other than tobacco and liquor), and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. What happened? Learn how to take away all these taxes with the FairTax plan. Register and tell your representative you don’t want to pay these taxes anymore!

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Here’s a great debate that I am having on Facebook about FairTax and why personalization of retirement planning is a good thing. What do you think?

“Some ASPECTS of the plan (FairTax) would be beneficial to young investors (the un-taxing of capital gains). Hell, some aspects of the plan will be good for crack heads too (they’ll get 200 bucks a month to buy crack with)

But overall, the main beneficiaries will be those who currently shoulder the vast majority of the tax burden. I don’t have to tell you who that is.”

Me- Extremely true, but lets just pretend you want to be rich in life and you have two options in getting there. One: thru a tax deferred account, or second: a tax free growth account?

If everything was like one big Roth IRA, without the parameters, there would be a lot more investors and a ton more rich people.

I believe in the youth becoming rich, not staying in Mediocreville. With an establishment of tax free earnings potential I could care less if they increased the tax to 30%; which I believe they should increase it by that figure to kick down the deficit that Bush and posse put us in.

“It IS effectively 30%, a 30% price increase to the consumer anyway

you may be willing to shoulder that burden because you can see how to make more money off of it. I’m worried about the millions of middle class families working two jobs just to get by that don’t know jack about investing but sure know they’ll have to pay $2.60 instead of 2.00 every time they buy a gallon of milk…. and everything else”

Me- One reason why our tax system is so flawed is because we worry too much what is happening now and not later. If people started to worry about our generation and did a long term reform tax bill it would be fine. I believe that the fair tax is that kind of reform. Bringing things to a simple way to get things done.

Middle class families working 2 jobs…. well extremely easy thing to resolve that. Most families are in debt. Why is that? Because they spend way more money then they earn. They’ve usually done poor decision without consulting professionals before hand. I’ve been relying on myself for a long time and I have suffered some financial hardships, but I usually mold my life around those hardships; while most of the middle class keep on buying more and more stuff instead of saving and decrease their spending.

What do you think?

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Part of the FairTax Week on eFIPO.com

I really don’t know what is worse: Paying taxes or the agony and time doing taxes? Remember yesterday’s post about how FairTax will end up saving businesses money by taking out compliance costs? Tonight we will discuss how much money and time people devote to tax compliance.

In 2005 the estimate time it took for the average American to complete their taxes was 27 hours- which is a full day just to complete forms. FUN FUN eh? You might also be one of those lucky Americans that have enough money to pay an accountant or a tax advisor to do it for you. Just having to deal with all the questions is time consuming enough.

“For several years, the Tax Foundation has calculated the cost of complying with the increasingly complicated federal tax code. They estimate that in 2002 individuals, businesses, and nonprofits spent 5.8 billion hours complying with the tax code- an effort that cost an estimated $194 billion.” The FairTax book p.43. Does this statement shock you or what?

When you think of all the compliance costs businesses face you can definitely see why FairTax would be a time and money saver. Businesses can spend their time and money doing the things they do best: make money and fuel the economy and consumers can get back to do what they do best: spend money and fuel the economy.

“Since 1954, the number of words in our tax code has increased by nearly 500 percent. And that’s just the increase in the code. The number of words in the IRA regulations has increased by 939 percent.” The FairTax book p.47.  The FairTax Act has 132 total pages compared to the more than 50,000 pages of tax code laws and regulations currently in effect. You ever hear the phrase taxes can kill you? Seriously, if the tax code and regulation books were to fall on you, you could die.

It is estimated that about 500 billion dollars is paid on yearly basis to comply with taxes. That is 500 billion dollars that the economy could use for much better things then tax compliance. Help America grow and get learn how the FairTax could change your life. Buy the FairTax book and visit the FairTax site.

To learn more about this subject head over to SpeckBlog, eFIPO.com, and FairTax.org

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Part of the FairTax Week on eFIPO.com

You ever wonder how much tax you’re paying for products? You might be thinking to yourself that it’s just the tax that you pay at the register. I wish! Unfortunately, you pay taxes every single time something gets pushed through the supply chain. So from the raw material to the end product, you end up paying hidden taxes every single time it gets to a new company in the chain.

Example (summarized from the FairTax book p.52)

We will use a loaf of bread as an example to demonstrate how embedded taxes are in every product we buy. First comes the seed producer, followed by the farmer who buys the seed to plant the wheat. The seed producer is a taxpayer, and the taxes are included in the price he charges his customers to purchase the seed. The farmer also purchases fertilizer, irrigation equipment, fuel for his tractors, and labor. All of these costs have taxes associated within the products too.

This is just for the seeds! Imagine all the taxes that are thrown together before you make yourself that sandwich. But trust me the example that I introduced makes up about 5% of the total supply chain. There are plenty of other simple taxes that we didn�t cover such as: utility costs, Social Security, rent, and Medicare. So when you pick up that loaf of bread and bring it to the counter you are about to pay tax on a product that has already been taxed a hundred times.

This is the reason why taking out embedded taxes would be extremely beneficial to the customer and the business. If we were to pay taxes just when we purchase the bread, it removes a lot of compliance costs that the producer no longer has to take care of. The FairTax introduces a 23% sales tax on everything. So when you take out the embedded taxes and then add the 23% sales tax products will roughly cost about the same. But again, when you think of the compliance costs that businesses will no longer have to pay, prices will inevitably go down.

Here are some articles you should read on why the American tax system is so confusing. Articles are presented by Free Money Finance.

The Problem with the U.S. Tax System

Best of Free Money Finance: Tax Posts

Good discussion post about FairTax at AllFinancialMatters- Anyone Read “The Fair Tax”�

To learn more about this subject head over to SpeckBlog, eFIPO.com, and FairTax.org

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Part of the FairTax Week on eFIPO.com

Are corporate taxes for real?

Yes, corporate taxes are a reality. The myth is just how they are paid. A corporation is out to do one thing. Make money. Taxes hinder their way to make a profit, so they thought of “creative” ways to still make a profit and not really pay any taxes.

“There is only one entity in this country that actually pays taxes, and that entity is the individual.”- Neal Boortz & John Linder

Example (summarized from the FairTax book p.32-33)

The fictional company, FairTax Inc., makes widgets costing $100,000 each. The 50 employees make two hundred widgets per year. FairTax Inc.’s takes in a revenue of $20million a year and the cost associated with the product cost 18million. That leaves the company with a profit of 2 million.

Let’s just say the federal government comes along with a tax increase of 5%. This means FairTax Inc. will owe an additional $100,000 in federal taxes. Now where do you think the company gets this extra money? Here are possibilities that happen in real life.

• 1. It could pay the money out of the 2 million in profits, which will damage the return the shareholders have in the company. If they use profit money, the dividend check the shareholders receive will be decreased. This scenario makes the shareholders pay the taxes, not the corporation.

• 2. Jump the widget price to cover the $100,000 in taxes. If the company can accomplish this feat, they are golden! So instead of the corporation paying the taxes they raise the prices and let the consumer take the tax burden.

• 3. My personal favorite. Let’s cut costs! What does this mean? Fire workers or turn your product to crap. That’s a sure way to compete in the global marketplace right? Wrong.

See corporate taxes are for real they are just siphoned from individuals. “Only individuals create wealth. Only individuals retain wealth. Only individuals can have their wealth seized by the government in the form of taxes.“

To learn more about this subject head over to SpeckBlog, eFIPO.com, and FairTax.org

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Part of the FairTax Week on eFIPO.com

Wouldn’t it be nice to look at your paycheck and see a whole dollar amount with no taxes removed? No more Social Security, Medicare deductions or any other random taxes. Does this sound appealing to you? Well way back in the day we had a system like that, but then came the ugly word INCOME TAX. AHHH!!! Everyone run to the hills the Income Tax monster is going to get you. Hmm� I can see Stephen King writing a novel about this idea. I quoted it first so I want some money for thinking about the idea!

Income taxes were started around the Civil War days when Congress passed a bill assessing a 3% income tax on everyone earning $600 to $10,000 a year. When the war passed, the people expressed their hatred towards income tax and terminated the bill and went back taxing tobacco and alcohol. But politicians saw that money coming in and they wanted more. How do you get a bill passed that everyone hates? Pass legislation when the country is on the ruins and kick it while its down.

During the Panic of 1893 politicians went to work trying to write up a new income tax bill. They called it “An Act to reduce taxation, to provide revenue for the government, and for other purposes.” Quite clever don’t you think? This new act taxed Americans with a 2% tax on everyone making more that $4,000 a year. The other good part of this bill was the fact that all government officials would be exempt from this tax. President Grover Cleveland decided not to sign it because he thought it was unconstitutional (which it was) and the Supreme Court also agreed which repealed the bill.

Can you see a pattern developing? Politicians really wanted that tax revenue so they could fund programs that they were personally involved in. After a few Democrats in Washington pushed for an amendment permitting the income tax, a flood of tax revenue went to the government. They were even allowed to add hidden taxes if it was for the good of the government and its people. Who decided what was good for the people? It was the wealthy politicians of course. They knew exactly what everyone wanted�!?

This is how the system was built. Eventually, something that was unconstitutional became part of our daily lives. Now we are no longer able to take 100% of our paycheck and spend it on the things we see fit. We have another ugly word called the withholding monster. It’s the sequel to the “Income Tax monster.” Man I should be writing in Hollywood!

To learn more about this subject head over to SpeckBlog and FairTax.org

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Want more money and your investments to grow tax free forever? What could the FairTax do for you? Well this is straight out of the book “The FairTax Book” by authors Neal Boortz and John Linder. I’ve highlighted the ones that I feel are extremely important for the younger generation.

• We start collecting 100 percent of our earnings in every paycheck.-Kinda.

• We all get virtual raises, since payroll taxes are no longer siphoned from our checks.

• We all start receiving monthly prebates equal to the amount of consumption tax we would be expected to pay on life’s basic necessities.

• We all start saving and investing without any tax consequences.

• The prices of consumer goods and services remain essentially the same, with the removal of the embedded taxes compensating for the added consumption tax.

• American businesses return operations to their home turf.

• The richest Americans bring their money back home where it helps fuel the economy.

• Those operating in the underground and shadow economies finally start paying taxes.

• You hear the unmistakable voice of the IRA agent who audited you three years ago asking if you’d like fries with that.

Now I know how amazing some of those changes might sound, but could it really happen? Yes it can! With more and more people educating themselves and taking an active position on our current tax system, this reform could happen. I love America and want to keep our economy and our country strong and I truly feel like this will be the savior of our nation.

I will be spending most of the week discussing how the FairTax will be enormously important for the future of America. If you would like more information please visit the website and sign the petition and email your Congressman or Congresswoman.

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Grassroots advocates can submit statements for the record!

A subcommittee of the House Ways and Means Committee, the congressional body responsible for the income tax code, is holding a hearing on September 26th to let House Members describe tax proposals they favor.

The Ways and Means Committee is also accepting written statements from the public that will appear in the official public record. Like our tax forms, the process for submitting statements has been made complicated but please endure the two-step process described below to support the FairTax.

FairTax.org is asking every FairTax supporter to e-mail a short statement of support for HR 25 and the FairTax to the House Ways and Means Committee for inclusion in the public record. Please submit statements before September 26th.

FairTax supporters are asked to make brief written statements describing one or two favorite reasons for passage of the FairTax. Please be respectful and mindful that others will judge both the strength of our support and the character of our campaign by the nature of these comments.

Sample: A written statement could be as brief as, “I support fundamental reform of the tax system by passing HR 25. A national retail sales tax to replace the income tax system will greatly improve the nation’s economy, help to increase the national savings rate and bring simplicity and fairness to the federal tax system.” This is just a sample statement. You decide the best few arguments that you most favor for passage of the FairTax and trust that your fellow citizens will cover other important points.

To submit a statement to the Ways and Means Subcommittee on Select Revenue Measures click on this link . After completing this form an e-mail will be sent to you within 24 hours soliciting your statement. This follow-on e-mail is your “doorway” to the subcommittee record. Be sure to identify yourself in both the form and the statement as a “FairTax supporter.”

Thank you for helping write American history and for all that you do to win enactment of HR 25.

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Every news station you watch these days will always have something new about illegal immigrants. On Fox News you will always hear how illegals are ruining America because they are not paying taxes, yet they are using our health care facilities, America’s oil, and stealing lower class jobs. Have you heard any real positives about illegal immigrants?

Let me tell you a quick lesson in history. Ever since the beginning of civilization, societies with the most power were able to use cheap labor efficiently which gave them a huge advantage when it came to their economics. Egypt had slaves, Rome had the lower class and slaves, England had the Irish and Scottish, and early America had immigrants in the North and slaves in the South.

Now that most civilized nations have made the use of slaves illegal, how are developed countries able to survive against growing countries like India, China, and Indonesia without exploiting cheap labor? Lower class? I think not. There are too many labor laws which make it harder for businesses to decrease their prices for goods and services. What about outsourcing? This scenario can sometimes work for big businesses, but for small and medium businesses it just isn’t cost efficient. Illegal immigrants? They aren’t “technically” protected by any labor laws, they are in desperate need of work, and they increase the margin of profit for businesses by lowering down wage expenses.

I think that exploiting illegal immigrants as sub-human, paying them much less then the average day laborer, and not giving them any kind of benefits is immoral. On the other hand, letting illegal immigrants live in the U.S. without paying taxes, living the American lifestyle (best medicine, better neighborhoods, cheap energy, ect.), and letting their children go to public schools on the taxpayer dollar is also extremely wrong.

I do believe that President Bush’s Immigration Plan is a positive step to control immigration. But how can we make the “‘they don’t pay any taxes’ people” happy? Well, I am a strong believer in tax reform and the Fair Tax Plan is a great way to make most people content. The tax plan (in summary) makes any one, whether they are Americans, illegal immigrants, or just people visiting America, pay the same amount of taxes.

Immigration will have a serious affect if America wants to be number one in the global market. Many other developing nations do not have the same labor laws as the U.S. and Canada which makes it a struggle to compete. Hopefully, in the future India and China will have the same labor laws which will make the world a level playing field.

Please read the Fair Tax Plan and if you think it will benefit America get involved by learning more about the plan, writing your representative, and signing the petition.

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