Ditch Our Income Tax and Replace It with?
It's called the FairTax
I live in Texas. The state, county, city, and even school districts all charge a sales tax that (where I live) equals 8.25% (except food and rent are not taxed). This provides enough revenue that there is no income tax in the state of Texas – think about that – NO income tax. Maybe it’s only a coincidence that the seven other states which don’t levy an income tax are traditionally deep-red conservative states?
We need a revolution in our thinking. With a handful of bold yet constitutional initiatives or changes, we could have a world where everyone could afford to own a home, send a child (or, two) to college, carry high-quality healthcare coverage, fully fund a lucrative retirement fund, and have enough income left over to enjoy eating out, pursue hobbies, etc. Imagine a world where you could do all of this on a one-income family… Would this be a world worth fighting for? Without violating the spirit of the United States Constitution, we could have all of this now. Last Tuesday we discussed how diabolical and detrimental an income-based tax system (and the bloated government organization that enforces it) really is. Today we will look at what we could replace it with.
In previous issues, we have described the various factions of the new Ruling Class that is attempting to solidify total control of our country. You can revisit those issues HERE. For the next several issues, we will be taking a look at the bold steps necessary to really return our country to We The People.
We will never rid ourselves of taxes altogether…
We need government and it will always need money to operate, but as we discussed in our issue, Government Should Be the Solution of Last Resort, it will always be inefficient, wasteful, and prone to corruption. So, it only makes sense we keep our government as small as possible… but, that hasn’t happened, has it?
Our government spending grows larger every single year. Even being $Trillions in debt hasn’t stopped our politicians from increasing regulations, jobs, departments, and handouts. I challenge you to answer the following question without looking it up… Exactly how much tax do you pay? There is not one in a thousand people who can answer that question correctly (I can’t)! This is because almost all of our taxes are hidden. Your Income Tax, FICA, and Medicare taxes are all taken out of our paychecks before we ever get the money (and you never see the extra 6.5% your employer has to pay that really should be your money). How much tax is included in every gallon of gasoline you buy or cell phone bill you pay? Your property tax may very well be included in your mortgage payment, etc. The best I can figure, most Americans are paying well over half of their incomes in taxes (some sources say it is well over 60%). If you could magically cut those taxes in half – give yourself a 30% raise – what would it do for your quality of life? The reason our politicians get away with taxing us so heavily is because there is no transparency. The only transparent tax we have is a sales tax…
So, why don’t we replace our Federal Income Tax with a National Sales Tax?
Read last week’s newsletter, Why Don't We Abolish the I.R.S.?, for better insight on how diabolical and detrimental a progressive income-based tax system really is.
Think about that for a moment – let that sink in. There is not a regulation, reform, or law you could pass… there is nothing you could do to make our politicians more accountable than adding transparency. If you combined it with a balanced budget amendment, every time a congressman wanted to give a foreign country (like, perhaps, Ukraine) $40 Billion they would have to tell us how many pennies it would add to our sales tax. In all probability, you would have politicians scrambling to cut programs just so they could campaign on the idea they’d saved you $ .o3 per dollar on your sales tax.
The power of lobbyists would be eviscerated because our congressmen would no longer have the power to create tax loopholes and passing new regulations would come with an obvious cost. Without getting personally rich from picking winners and losers, our politicians might actually start paying attention to their constituencies.
Another added benefit is we get rid of all these fake political arguments about the rich not paying their fair share and we prevent congress from financing the country off of the backs of the middle-class. Rich people spend more money so they would pay more taxes. Poor people spend less, so they would pay less (and we could still protect the very poor – we’ll discuss that in a moment). A national sales tax would give everyone a vested interest in holding our government accountable, be racially neutral, and to a certain extent would be voluntary (after covering necessities, if you don’t want to pay taxes, save your money instead of spending it).
Speaking of savings, our bankers and Ruling Class aren’t going to like the idea of encouraging people to save money. Much of their profit comes from massive amounts of consumers living in debt. As I envision more people freeing themselves from government dependence and taking charge of their own lives, futures, and retirement my heart bleeds for the bankers who might have to make do with lower profits – but, I’ll get over it.
Perhaps the greatest advantage would be to abolish the I.R.S. Every state already collects and enforces the collection of state sales tax. The federal government could simply give each state a small fee to add and deliver federal taxes. We could literally abolish 95% of the 75,000+ workforce and $14 Billion annual budget of the I.R.S. – and combined with some of the other common-sense savings we will be discussing over the next several weeks, this would only be the start.
So, how much would the sales tax be? Probably around 30% (plus any state and local sales taxes; so, probably under 40% total). Before you totally flip out, remember this… Your paycheck would immediately increase by 20% – 40% and/or the price of goods you purchase could come down 10% - 15% (the companies making, delivering, and selling the goods aren’t paying taxes so their costs come down). In addition, eliminating the corporate income tax would put our economy on steroids. President Trump is on record saying that just eliminating corporate tax could boost our GDP to 7% or higher – companies would race to relocate back to the U.S. and create a non-inflationary rise in wages (and, the corresponding rise in the standard of living). Also, as we now have transparency regarding the cost of government, we have a very real chance of dramatically reducing its size… and with it, the amount of sales tax we need to pay. Within 5 to 10 years, that 30% could easily come down to 15% to 18% (or, less).
We could pay off our national debt within a decade by just dedicating a couple of cents to it and everyone – citizens, illegal aliens, tourists, diplomats, even the poor would pay taxes.
Speaking of the poor… there are a number of people (besides myself) who have been thinking about this for a long time. One of the sticking points has always been the idea that this could punish the poor, but a brilliant solution has been discovered. It is called a prebate (kind of like a rebate, but it happens ahead of time). Basically, each year we determine the poverty level (in recent years, it has been an annual income of $26,000 for a married couple). We then calculate how much sales tax that family would pay that year – for easy math let’s say it is $6,000. We then divide that number by 12 and give families a government check each month for $500. The cost of this has already been figured into the 30% sales tax rate and it totally eliminates the burden on the poor – but the monthly check goes to all citizens, regardless of income, age, or wealth. It is kind of like the Universal Income Democrats have been clamoring for (and good luck to the left trying to explain it’s not) but, in reality, it gets paid back to the government as people buy necessities each month.
If we want to release the self-employed and small business owners from the burden (and expense) of hiring a Certified Public Accountant each year, then this is the way to go. If we want to put our economy on steroids, bring manufacturing back home, increase wages, and start empowering the middle-class instead of punishing it, then this would be a good start. If we want our politicians to start paying attention to us again instead of the lobbyists, then this is mandatory.
There are many other big ideas we will be discussing over the next several issues and all of them have the power to increase our standard of living and preserve our freedoms… eliminating our progressive tax code, however, is a big first step that would make many of the other reforms possible. Give some serious thought to this, and then think about it some more. The time to move towards this is almost upon us – once we reject the yoke of the globalist Ruling Class we will need to move aggressively towards freedom insuring policies.
By the way, there is a name for the tax code I am proposing… it is known as the FairTax. If you would like to know more about the FairTax, order the book HERE. (Full disclosure – I make no commission on your order… sigh)
Be aware, the FairTax scares the hell out of many in our establishment Ruling Class – you can find a lot of negative print on it. But I haven’t found any arguments against it I consider really valid. I’ll be glad to debate anyone, anywhere, anytime on the merits of the Fair Tax (and wouldn’t that be fun). If you have questions or comments, be sure to leave them in the comments section below.
As always, our Friday editions include a joke and a recipe - have a great weekend!
STUPID JOKE of the WEEK
It's hard to explain puns to kleptomaniacs. They always take things so literally.
Want something different? You’ve gotta try this! If you have trouble sourcing the ingredients, go HERE to have them delivered (Unfortunately, I make no commission on this recommendation… sigh…)
RECIPE: CHICKEN SCHNITZEL WITH RED CABBAGE
and Apple Slaw
Prep Time: 10 minutes
Cook Time: 25 minutes
Our take on a classic. Our tried-and-true schnitzel recipe will have you seated and savoring every bite in no time. Served with a refreshing red cabbage and apple slaw to balance the plate and cleanse the palate. Serves 4.
ANTIBIOTIC-FREE CHICKEN BREAST FILLETS, THAWED
QTY ¾ CUPS
QTY 1 ½ CUPS
QTY ½ CUP
QTY ½ CUP
COARSE SEA SALT
QTY TO TASTE
FRESHLY GROUND BLACK PEPPERCORNS
QTY TO TASTE
RED CABBAGE AND APPLE SLAW:
QTY ¼ CUP
APPLE CIDER VINEGAR
QTY 4 TBSP.
RED CABBAGE, THINLY SLICED
QTY 3/4 CUP
½ GRANNY SMITH APPLE, PEELED AND JULIENNED
½ CARROT, PEELED AND JULIENNED
GREEN ONIONS, THINLY SLICED
QTY 2 STEMS
FRESH PARSLEY, CHOPPED
QTY 3 TBSP.
Schnitzels: Place the flour, beaten eggs, and panko breadcrumbs in 3 separate shallow containers. Season each cutlet with salt and pepper. One at a time, dredge the cutlets into the flour, shake off excess; then dip into beaten eggs and cover with panko breadcrumbs. Set breaded cutlets aside on a sheet pan.
Heat 2 Tbsp. of oil and 2 Tbsp. butter in a large 12” skillet over medium-high heat. Add 2 chicken breasts at a time and fry until golden brown about 3-4 minutes. Using tongs, turn cutlets and cook another 3-4 minutes.* Transfer to a sheet pan lined with paper towels and season with sea salt. Repeat until all cutlets are fried.
Apple and Red Cabbage Slaw: In a large bowl mix the mayonnaise and vinegar. Add the cabbage, apple, carrot, green onions, and 2 Tbsp. of parsley. Season with salt and pepper.
To Serve: Serve chicken schnitzels garnished with additional parsley and slaw on the side.
*USDA recommends cooking poultry to a minimum internal temperature of 145°F.
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