Posted by JohnS

          While the Constitution permits the congress to raise taxes to defray the cost of government, that permission is been misused so that today the government uses our taxes to fund favored programs that are not part of the cost of government, examples are almost unlimited.  They take from the many and give to the favored few to garner votes.  The Income Tax has provided a unique opportunity it allows the federal government to favor some citizens while punishing others.   It taxes citizens at different rates, it eliminates the taxes for some, even pays some rather than taxing them.  It provides subsidies to certain groups, the indigent, homeowners, farmers, etc. Beyond the Income Tax, Congress has found it convenient to tax certain goods or services.  The so-called “sin taxes” on tobacco and alcohol are examples.
          It is appropriate for the government to tax the Citizens to defray the costs of government.  It is also appropriate to defray the costs of federal projects such as our national highway system through fees, duties or taxes.  However, often these projects have lives far beyond their benefit or only benefit a segment of the population.  Congress seldom repeals a federal program. It is not appropriate to tax the Citizens to fund programs not directly tied to cost of government or beneficial to all.  It is also important to insist that there be only one form of taxation to maintain the general cost of government.
          We now have an Income Tax that not even the IRS understands; various other taxing programs have been talked about, mainly a value added tax and a consumption tax.  The current administration is even floating the idea of adding a value added tax upon the income tax.  There seems to be no end to Congress’s desire to tax the people to support their special interests.    
           The Fair Tax bill, a form of consumption tax, now before congress is the best program being considered for the reasons enumerated below but is being held in committee without action.  We need to force Congress to get the bill out of committee and before the Congress as a whole. There is a strong citizen’s movement throughout the country to force Congress as a whole to consider the Fair Tax bill; however, there are many special interests that do not want to see the income tax removed.  For further information go to
          The benefits of the Fair Tax are:
          First, it taxes everyone equally, today illegal aliens do not pay any income tax and many people evade paying taxes by being paid under the table.
          Second, by providing a prepayment to everyone, low-income workers are compensated for their tax burden.  Still, they are not compensated as a special group – everyone receives the prepayment.
          Third, it rewards thrift while the income tax punishes it, interest and dividends are not taxed. Those that are thrifty and invest are allowed to keep their profits.  The current Income tax doubly taxes those that invest in business.  First, it taxes the business’s profits, so investors receive less in dividends and then taxes the dividends paid to the investors.
          Fourth, Corporations will be more competitive as they will pay no taxes. Corporations will use that saving to reduce costs and the price of the goods they produce. They will be more competitive on the international market while providing a cheaper produce, a benefit to both the corporation and the users.
           Fifth, it is easy and less costly to administer.  There would be no April 15th burden on individuals and businesses. The size of the administrative department needed to oversee the system, “the IRS”, would be minimal.
          Sixth, it would be transparent.  Congress would have to pass a bill to raise the taxation rate, which, even if hidden in an obscure bill, would be immediately apparent to all when we find the cost of our purchases rising because of the increase in the tax rate.
          If you agree, please investigate and support the Fair Tax by going to its web site at   

This entry was posted on Monday, September 27, 2010 at Monday, September 27, 2010 . You can follow any responses to this entry through the comments feed .


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