Category: Taxing the American Public

May 3, 2011

Pragmatic champion of liberty

by Nori — Categories: Economics, Government, Politics, Taxing the American PublicComments Off on Pragmatic champion of liberty

The presidential elections are a bit over a year away. It’s time to start paying attention to the options facing us.

Here is the guy I’m most interested in at this point. If you want smaller government and less government intervention in our lives, this guy’s already had LOTS of practice doing the “right” thing in his two terms as Governor of New Mexico. He cut the 10 percent annual growth his state budget had been experiencing in half. He vetoed 750 bills, a third of them Republican, privatized government services and trimmed public-sector employee rosters. He lowered taxes and still exited out of his term limited service with a tidy budget surplus. Compare that to his successor who immediately increased the size of the state government by 4500 employees at a cost of ~2 million dollars.

Watch the video. I’ve seen it a couple times. I LIKE this guy, what he’s done and most of what he stands for.  It doesn’t hurt that the guys interviewing Johnson are Reason contributors whom I admire.

April 21, 2011

Redistribution of GPA

by Nori — Categories: Government, Politics, Taxing the American PublicComments Off on Redistribution of GPA

Remember this post where I talked about using redistribution of grades to teach students the long term effects of the tenets of socialism?  Now someone’s done a video about students not being eager to redistribute “excessive” GPAs to help those who won’t be able to graduate due to poor performance.

I think the good students’ reactions to sharing their GPAs with the “less fortunate” students is precious . . . and their saying redistribution of earnings is different is a gut reaction.  <LOL>  They may think redistribution of wealth is different, but I bet it’s got those students thinking!

If you take the time to watch the video (it’s not very long) you’ll notice there are about 20 names on the petition.  Would you want to bet they are students who want the grade bump they’d get if this policy went into effect?

November 26, 2010

Arguments for the Fair Tax

by Nori — Categories: Economics, Government, Politics, Taxing the American Public, Wising upComments Off on Arguments for the Fair Tax

I have long been a supporter of the Fair Tax.  I think it will do tremendous things for our country.  What frustrates me about the Fair Tax is the way I hear it described.  Instead of listing the key points of the Fair Tax, they muddy the water.  That is SO not helpful.

The Fair Tax is really very simple.  Income, payroll, inheritance and gift taxes go away.  Instead of being penalized for making money, hiring employees, inheriting money or being gifted money, residents of this fair nation would be taxed on how they SPEND their money.

Put another way, you can make all the money you want and the government will not stick their hand in your pocket for their perceived share.  If, however, you buy that new BMW or luxury yacht, you’ll pay tax to the government.  Get a custom house built or buy a new house?  Yeah, you’re gonna fork over.  Buy a used car, used house, used boat?  You don’t pay.  The Fair Tax encourages frugality and thrift.  It encourages companies to do business by removing the road blocks the tax code imposes on them.

If you’re wondering how the government can afford to function when they don’t have their hand on your paycheck/inheritance/etc., don’t worry.  The Fair Tax is a “revenue neutral” plan.  That means the government will get just as much money as the current grotesquely complicated tax plan, but it will just do it with much less overhead.  The Internal Revenue Service agency will be drastically reduced in size, possibly saving as much as a billion dollars over the current tax code.  The amount of money saved by businesses and private individuals is enormous, in excess of what the change in tax code will save the government.

Just so we’re clear, if it’s a Federal Government tax on anyone or anything, it’s going away.  The change in tax code will remove the need for an agency to enforce our current massively complicated tax code.  The mechanism for collecting tax is hugely simplified and is transferred to the Treasury.

So here’s the goal of the Fair Tax, “to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.”

Here are the reasons I support the Fair Tax.

Congress finds the Federal income tax–

  • retards economic growth and has reduced the standard of living of the American public;
  • impedes the international competitiveness of United States industry;
  • reduces savings and investment in the United States by taxing income multiple times;
  • slows the capital formation necessary for real wages to steadily increase;
  • lowers productivity;
  • imposes unacceptable and unnecessary administrative and compliance costs on individual and business taxpayers;
  • is unfair and inequitable;
  • unnecessarily intrudes upon the privacy and civil rights of United States citizens;
  • hides the true cost of government by embedding taxes in the costs of everything Americans buy;
  • is not being complied with at satisfactory levels and therefore raises the tax burden on law abiding citizens; and
  • impedes upward social mobility.

Congress finds further that the Social Security and Medicare payroll taxes and self-employment taxes–

  • raise the cost of employment;
  • destroy jobs and cause unemployment; and
  • have a disproportionately adverse impact on lower income Americans.

Congress finds further that the Federal estate and gift taxes–

  • force family businesses and farms to be sold by the family to pay such taxes;
  • discourage capital formation and entrepreneurship;
  • foster the continued dominance of large enterprises over small family-owned companies and farms; and
  • impose unacceptably high tax planning costs on small businesses and farms.

Congress finds further that a broad-based national sales tax on goods and services purchased for final consumption–

  • is similar in many respects to the sales and use taxes in place in 45 of the 50 States;
  • will promote savings and investment;
  • will promote fairness;
  • will promote economic growth;
  • will raise the standard of living;
  • will increase investment;
  • will enhance productivity and international competitiveness;
  • will reduce administrative burdens on the American taxpayer;
  • will improve upward social mobility; and
  • will respect the privacy interests and civil rights of taxpayers.

Congressional Findings Relating to Administration of National Sales Tax–

  • most of the practical experience administering sales taxes is found at the State governmental level;
  • it is desirable to harmonize Federal and State collection and enforcement efforts to the maximum extent possible;
  • it is sound tax administration policy to foster administration and collection of the Federal sales tax at the State level in return for a reasonable administration fee to the States; and
  • businesses that must collect and remit taxes should receive reasonable compensation for the cost of doing so.

Congressional Findings Relating to Repeal of Present Federal Tax System- Congress further finds that the 16th amendment to the United States Constitution should be repealed.

Works for me!  Let’s repeal the 16th Amendment and get Fair Tax working for us.

October 23, 2010

YouCut Score Card

by Nori — Categories: Government, Politics, Taxing the American Public, Wising upComments Off on YouCut Score Card

I don’t know how active you are politically.  I don’t know if you spend time or money supporting candidates and issues.  I do what I can when I can with what I can spare.  One of the projects no-cost participation is the YouCut project run by Eric Cantor and his staff.  For those of you who just said “who?”, Eric Cantor is the current minority whip in the House of Representatives.  He presents budget items for an up or down vote on the floor of the House based on how the public (us) vote.

I vote every time a slate of proposed cuts is presented.  With a “tax and spend” slate of legislators in majority, it’s been a pretty non-productive year for cutting Government waste.

The Minority Whip’s office has a put up a chart of the legislators and the percentages of for voting for the YouCut measures.  It’s pretty interesting reading!  There are actually fiscally minded Democrats!  Who knew?!

September 21, 2010

November is coming

by Nori — Categories: Economics, Government, Politics, Taxing the American Public, Wising upComments Off on November is coming

The focus this coming election is on a politician’s character more than his or her party. And as November approaches, we need to know . . . are the people we elect going to retain their stated values and goals when they reach the rarefied air of Washington DC? Are they going to adhere to the principals upon which they campaigned?  Are they going to remember it is “we the people” and hold strong against peer pressure and listen and abide by our wishes? Are they truly going to reflect our values and morals? Those, indeed, are the key questions this November.

As a mental refresher, take the time to watch the videos of the Independence Caucus.  It’s important we don’t lose focus on the problem or sight of the solution. These videos lay out the problem quite clearly and give an enticing glimpse of what could be if we apply ourselves to finding people who will truly represent us in Washington.

And since November is just around the corner, take the time to use the Fair Tax Calculator to see what impact the Fair Tax would have on your personal finances. It’s quick, it’s fun and it’s an eye opener.

The most important thing I can ask of you is to take the time to vote in November. I am not telling you who to vote for, I’m telling you to get engaged. Casting a vote for who goes to Washington is OUR job. It is possible our most important job. If we don’t do our job, we have no ground to stand on if things are not done to our liking. Get out and vote.

April 24, 2010

New health care bill

by Nori — Categories: Government, Politics, Taxing the American Public, Wising upComments Off on New health care bill

One of my brothers-in-law got an email with a letter from a retired constitutional lawyer who had read the whole health care bill and shared his perceptions.  My b-in-law emailed me to ask if what he was reading was accurate, thus beginning a discussion of the new health care bill and its impact on our economy and the cost of health care.   Here’s the “Cliff Notes” version.

B-in-Law: Is there any way to really check this out for accuracy?

Me: From all the talking heads I’ve listened to over the last six months, it appears what Connelly has to say is right on track with the provisions of the bill.  Sad but true.

B-in-Law: My question of the moment is:  What is being proposed or offered up that both break the deadlock and works toward creating some health care options that are obviously needed.   It seems we cannot stay on the same track, but rather than just say “no”, which is counter productive, where was a counter proposal that laid out what we wanted.  I am inclined to vote against any incumbent regardless of party just to try and clean house of the entitled few.

Me: We must have tort reform and portability.  Those two will help a lot but it’s only the start.

Cost will take care of itself if we provide health care for the low income uninsured by paying the premiums for them, NOT by gutting our health care system.  If we are going to offer health care to those who can’t afford it, it will cost MUCH less for everyone if the government treats the uninsured like the employees of Whole Foods are treated.  If the Gov’t pays for their health insurance (major medical, high deductible) and provides them a $2500k medical spending account annually things will drastically change in the health care sector with no additional legislation needed.  The free market system will take care of the reform.  We could do all that for LESS THAN 500 BILLION ANNUALLY instead of this 1.38 trillion dollar disaster being foisted on us.  I’m guestimating that calc.  They say we have 12 million uninsured.  High deductible major medical for a family of 4 would be in the neighborhood of $500/mth.  Add that $5100 ($500×12 months) to the government supplied $10,000 ($2500×4) medical  spending account and the total is $15,100 per family of 4 or $3775 per person.  Multiply that times 12 million and you’ve got $453 billion.  That’s a third of what the government wants to spend.  Figure the third party administration of this is going to run about half a bil and you’re at the $500bil guestimate.  Now here’s where it gets even better.

Once people have medical spending accounts and they see the spending account as THEIR money they’ll start shopping around and using the money for things that improve their health.  They’ll start asking if they really need what the doctor is selling.  They’ll shop doctors and pharmacies by price which will instill competition and reduce cost.  At the end of the year, half of whatever’s left over is invested for retirement or college or special schooling or . . . half stays in the account and the account is again topped up to the $2500 original.  This provides incentive for people to husband their money carefully and take good care of themselves.  Kids will get a better education, adults will have a real retirement account . . . social security, medicare and medicade could go away.  Putting personal greed and the capitalist system to work will change America fundamentally but in a good way.

With everyone insured the insurance companies aren’t being hit with higher costs to cover the cost of providing unreimbursed health care for the uninsured.  When health care charges drop because the health care is being paid for, health care premiums will drop.  None of this needs to be mandated.  It will take care of itself.  It’ll take a little bit of time but it WILL take care of itself . . . if we do the right things, if we kill the current health care bill, if we get tort reform and portability, if we change our tax structure.

If we can get the Fair Tax voted into law a huge amount of money that has been sheltered offshore will come back home.  If noone is penalized for MAKING money, only for SPENDING money, things will change drastically.  People will start saving and investing.  Manufacturers will come back to the US to build their factories and run their businesses because they will not be penalized by the government for doing business here in the US.  When business are no longer penalized there will be more business, a higher level of employment, better wages, better benefits . . . India and China will no longer get our work.

We just need to get government out of our pockets.

One more thing.  We MUST fix government spending.  Watch this: Article 6

B-in-Law: Good reply, straight forward (kiss) and makes sense.  I really agree on Tort reform and portability.  Why hasn’t this idea or concept been pitted against the Democrat disaster and let the people vote with their response?  This needs to be the platform all of us, regardless of party, needs to get behind and support any political person who promotes and carries through.  The other is that the Congress also gets the same benefit package and none of the post term benefits that are now entitlements.

Me: I saw a lot of this mentioned at Obama’s Health Care Summit.  It just didn’t make it into the bill.  It apparently wasn’t part of the current power’s progressive agenda.  The goal appears to be bigger government, more intrusive government pushing social justice instead of personal responsibility, comprehensive government instead of a government of the people, by the people and for the people.  Sad.

March 24, 2010

Whose taxes?

by Nori — Categories: Government, Taxing the American PublicComments Off on Whose taxes?

I did our taxes before the end of January.  Taxes can get pretty simple when people retire and Wadly is definitely retired.  I’ll tell you what bothers me.  I don’t mind paying taxes and I love getting some of it back when I file each year but I don’t like getting a refund of money I didn’t pay in.  If I’m getting a refund for more money than we paid, that tells me I’ve taken someone else’s money, money that’s not mine to get.  <wince>

Maybe I’m being overly moral, but I know what makes me comfortable.  Redistribution of wealth does not make me happy.  Taking something I haven’t earned makes me uncomfortable.  This is supposed to be the land of the free.  We aren’t free if we pay taxes and get back someone else’s involuntary contribution.

March 10, 2010

Tax code

by Nori — Categories: Economics, Government, Politics, Taxing the American Public, Wising upComments Off on Tax code

Tax code in pages

In my lifetime the tax code is five times bigger than the year I was born. That’s more than 56,000 page larger in just over 50 years.

To the left is a graphic example of the growth of our nation’s tax code from its inception in 1913.  At the current rate of growth, at the end of my projected life expectancy the tax code will top 126,000 pages.

Are you okay with that?  I’m definitely NOT okay. Every time the tax code increased, a little more of our liberty is lost.

Do you think this isn’t going to effect you? Do you have ANY idea what government spending is doing to our economy?  Read this two page article and tell me this isn’t going to negatively impact every man, woman and child in the US.

The conservatives, the Tea Partyers, the economists are all screaming at us to look and listen.  Are you hearing them?

December 23, 2009

Our political system at work – scary

by admin — Categories: Politics, Taxing the American PublicComments Off on Our political system at work – scary

You need to watch this video – A Tale of Two Congressmen

OMG!

This is the first video from the Independence Caucus I watched.  It shook me pretty badly.  Since viewing this video I’ve watched all the available videos.  If the state of our current political situation doesn’t make you totally sick to your stomach, you’re living in the wrong country.

Take a minute to watch the video and tell me what you think.

November 17, 2008

Taxing Fairly

by Nori — Categories: Taxing the American PublicComments Off on Taxing Fairly

I’ve become involved with the group supporting the bill to enact the Fair Tax Act, HR25.  The Fair Tax is a revenue neutral tax.  It doesn’t take in any more revenue, nor any less revenue than our current tax plan.  It just does it fairly.  The premise of the Fair Tax Act is it distributes the tax burden by taxing purchases, not income and it is truly not taxing the poor.  This is how it works.

When you get your paycheck or your dividend check or your pension check, you get all of it.  None is taken out for capital gains, payroll taxes, income taxes, social security . . . nothing removed.  At this point I should say, if your state has income tax, they’re gonna take a chunk but that’s subject to change as the Fair Tax is implemented.  More on that later.  So you get your check and it’s all there, every penny.  So how do you pay tax?  By buying things.  Thus, everybody pays.

If I buy a brand new car, I’m going to pay a consumption tax on that purchase.  I don’t pay a consumption tax if I buy a used car.  Pretty cool, eh?  If I buy a new house, built to my specs by the chi chi builder in town, I’m gonna pay tax.  If I buy a “used” house, no tax.  So my forays at Goodwill are not taxed.  I’m liking that.

So how do the poor not get taxed?  Easy.  Everyone, whether rich or poor, gets a prebate check each month for the amount of tax that is calculated to have been paid for necessities.  So say the poverty level is $28k.  I don’t know what it is, I’m just throwing a figure out.  The current tax rate is 23% and 23% of $28k is $6440 per year.  Divide that by 12 and you get ~$537 a month prebate.  So poor people get $537 a month to offset what they would pay in taxes for food and home heating and . . .

But that means you and I will also get a prebate check to offset what we pay for necessities.  Pretty cool, eh?!  Rich people are going to get the same prebate.  I have no problem with that.  So what if for them it means they can take their household staff out to lunch once a month, fair is fair.  Remember, when the rich guys buys his new 10 room vacation condo in Florida, he’s going to pay 23% on that 2.8 million vacation abode and when he buys that new Porche Carrera he just can’t live without, he’s going to pay 23% on that very tidy chunk of change.  Fair IS fair.

So here’s what’s so awesome about the Fair Tax, other than it’s . . . er . . . FAIR.  It doesn’t matter whether you’re an illegal alien or an upstanding citizen, your still gonna pay the tax!  Brilliant!  If you want the prebate check every month and you aren’t here legally, you need to register.  How cool is that?!  Talk about killing two birds with one rock.

So lets get back to state income tax.  Remember I said some states have an income tax?  Well, if we can get the Fair Tax Act passed into law, states will most likely follow with a consumption tax instead of an income tax.  So instead of paying the state tax out of your paycheck you’ll pay it at the cash register at the same time you pay your federal tax.  No more IRS, no more filing forms every year, every quarter.  No more saving receipts and dreading April 15th.

There’s one more thing I should mention and that’s about purchases made by manufacturing and service companies, among others.  When a distributor sells to another company . . . say I make ball bearings and I sell to manufacturers who make overhead doors, the companies who buy my ball bearings don’t pay a consumption tax on the purchase.  It’s the end user who pays the tax when they buy the overhead doors.  And because businesses no longer pay capital gains, no longer have their ability to produce taxed, they are able to manufacture at lower, more globally competitive prices.  Talk about a boon for the nation!

Have you given a thought to how much money the government isn’t going to spend on enforcing tax code?  Billions of dollars every year go to manning and running the IRS.  Look at all the offices nationwide that will no longer require our tax dollars!

And then there are the lobbiests who spend their lives in Washington trying to influence the vote for a more favorable treatment for taxing of their special interest group.  That’s going away too.  Without a tax code to rewrite in favor of this group or that, our legislators can spend their time doing a better job of taking care of our country.  Who would say no to that?

For more information about the Fair Tax Act, visit FairTax.org.

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