Category Archives: Fair Tax

Sussex Tech Property Tax Increase?

By Staff Writer: Wolf von Baumgart General Assembly Considers Options The Delaware General Assembly met twice earlier this week to consider funding options for Sussex Technical High School District. The Sussex County Delegation (consisting of nine state representatives and five state senators) continues to study Sussex Tech’s impending financial crisis. Five budgetary proposals were originally included in a study attendant to House Concurrent Resolution 2, previously passed in January. Subsequently, other options have emerged for consideration. Sussex Tech administrators have been steadily seeking legislative approval to more than double the STHSD’s current property taxes over the last two years above the current limit as currently permitted by statute. Delaware's three state-created countywide vocational school districts are legally empowered to raise school taxes (with the Read more

China’s Economy not really as big as ours

China's purchasing power may be as great as ours. It is the first step to China's climb into the top position. Reports that China has the World's largest economy are premature. It is only by one measure, purchasing power while all other measures show the U. S. solidly ahead. It also is an estimate Marketwatch did without having data to analyze after the year ends and may be off 15% either way. In other words, it is more useful as a headline than a fact. Forgive me for not hyperventilating over the headline. Still, it should open up a discussion. In the 1870's, the U. S. took over from the U. K. as the world's largest economy, at the rate we are not growing and China is, sometime in the next 15 years, China will prove their theory that the history operates in 500 year cycles between East and West. The good news for the U. S. is that we are a Pacific Rim nation. We are poised to profit Read more

Fair Tax Friday, A Whitepaper on the Prebate by Karen Walby Ph.D.

The Fair Tax is much maligned because the prebate is often overlooked or just plain ignored in the calculations put forward by some organizations. Understanding it is crucial to a discussion of the proposal. I have chosen to highlight this segment today. If you are new and have no idea what the fair tax is, go to this simple video. Under the FairTax, all Americans consume what they see as their necessities of life free of tax. While permitting no exemptions, the FairTax (HR25/S13) provides a monthly, universal prebate to ensure that each family unit can consume tax-free at or beyond the poverty level, with the overall effect of making the FairTax progressive in application. This is not an entitlement, but a rebate (in advance) of taxes paid – thus the term prebate. Everyone pays taxes at the cash register. Although everyone pays the same tax rate at the cash register, the chart Read more

Could The Overleveraging Be a Tax Reform Issue?

From the Fair Could heavy corporate debt and an underperforming economy be traced back to your tax dollars? An intriguing article published on the popular investment site, The Motley Fool, details a huge problem with our current tax code and makes this point. The article, Stop Bribing Companies to Lever Up, lays bare the backwards logic of our government essentially bribing American companies – with your tax dollars - to finance corporate investments with debt. It begins: Go ahead and pull out an income statement for your favorite stock. I'll wait. You'll notice that there is a line called "Interest Expense" that comes before the "Tax Expense" line. Now notice the absence of similar lines for "Dividend Expense" and "Share Buyback Expense." No, I'm not trying to bore you with an accounting lecture. I'm trying to point out a travesty of modern finance: the unequal Read more

Ways and Means Server Overloaded

As is typical of Washington insiders, CSPAN did not understand the importance of the FairTax hearing today. The Ways and Means Committee streamed it on their website, but the national interest is so high that the server has been maxed. There is something cooking in the country. Americans are ready to wrestle with the tough choices needed to get this country back on top.  An alternative feed is available through facebook.

Let’s Get To Work With FairTax: Guest Post

FairTax  is a fundamentally different way for the Federal government to raise its revenue. FairTax is revenue neutral. It is neither a tax increase nor a tax decrease on the American nation. It is just a very simple and fair way for the Federal government to collect its needed revenue. It is also sweeping in its impact on America; her jobs, her prosperity and her future. FairTax is not a fringe idea. It is presently before Congress as House Bill HR 25 and Senate Bill S 1025. There are over 50 cosponsors today in the House and Senate. Hearings are scheduled this week in the House Ways and Means Committee. Representative John Linder was for a longtime a lone voice in support of FairTax. He is no longer alone. In detail, FairTax replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax with a monthly cash prebate Read more

Fair Tax Friday– Guest Post

There are many benefits to replacing the current tax system with the Fair Tax (HR 25). One Benefit of the Fair Tax is that it would simplify the current tax code. The tax system that we have now is about 70,000 pages long and is so complex that even some politicians, who write the tax code, find themselves at odds with the tax laws. The Fair Tax would simplify this system by scrapping all of the current federal taxes such as: income taxes; Medicare taxes; social security taxes; gift taxes; inheritance taxes; corporate taxes; capital gains taxes; and replace it a simple national sales tax on goods and services.  The Fair Tax is, however, not just a national sales tax. It also has included in the plan a prebate from the government, which is money that is sent to each citizen to cover the costs of taxes on goods and services up to the poverty line. All citizens would receive the same amount Read more

Huckabee To Testify at the First Congressional Hearing on the Fair Tax

Amidst all of the debt and deficit talks coming out of DC, there is some shocking but great news beginning to show up in new reports: politicians and pundits have actually called for major tax reform. Many of you know that I strongly believe the FairTax is the best way for taxpayers and businesses to participate in the federal tax process because it’s the only solution that’s truly fair, finite and family friendly. I campaigned on this issue in 2008 and my passion on this issue has only grown since then. In fact, I wanted you to be the first to know that your voice will finally be heard in Congress. On July 26th, I will travel to Washington, DC and testify before the House Ways and Means Committee about the importance, need and feasibility of the Fair Tax. We as taxpayers can continue down this complex troublesome tax road, or we can adopt the FairTax and finally Read more

Why Is The Fair Tax so Controversial–My Contribution to Fair Tax Friday

Polling shows that that the Fair Tax effort is gaining substantial momentum.  More people would  rather have a good National Sales Tax than the current system.  The people are ahead of the political class as usual.  The same was true with civil rights.  Polls showed the people were ahead of the politicians.  That is why we were able to pass civil rights laws almost 100 years before 1964, but the elite class in the courts gutted much of them.  The KKK supported Democrat Party of the 1913 to 1916 era repealed civil rights protection but could only keep some of those gains by filibuster in the Senate. Today, the political class is just as determined to keep the source of its power, the tax code. Why does the political class so cherish the current system? The income tax is 98 years old.  An entire industry has grown up around it.  Notice the University of Michigan Economists like Read more