Local Real Estate Comments and Ramblings

For several years I have been a supporter of the “Fair Tax”.  When I originally heard of the idea I liked it since it taxes the underground economy.  All of the people who are flying under the IRS radar by getting paid in cash will instantly become tax payers!  Waiters, drug dealers, illegal immigrants, all will become part of the tax system.  Yes, even the kid down the street that cuts your grass becomes a taxpayer.  when he spends the money on a new Xbox game and double McCheeses he pays the fairtax! If he puts it in the bank and saves it for college .. no tax. For a long time that is all that I needed to know.  That was enough for me.
 

As time went on I realized that there is a LOT more benefit to this type of tax system.  
 

Here are just a few of the high points as I see it

• Everybody pays but the monthly prebate will keep it from being a burden on low income earners.  High income earners who spend more will pay more.
• Everybody keeps 100% of their paycheck! Plus they get a check in the mail every month to offset the cost of the tax on basic necessities.
• It encourages saving.  Think about it – banks will become better capitalized and it won’t take a government bail out!
• It will attract business (and jobs) to the USA.
• It’s incredibly simple.
• As I already mentioned, there is no avoidance by getting paid in cash
• Foreign visitors pay tax when they spend here!
• By removing all of the hidden, embedded taxes and replacing them with one simple tax the cost of goods and services will remain the same.
• It keeps politicians from trying to buy our votes with our own money by finagling tax policies! There will still be plenty of debate on how to spend the money though. 

Can we support the entire US budget on a sales tax?  Well, there are two parts to that. Congress needs to enact a reasonable budget and then stick to it.  Government spending is a whole other issue. However, two of the largest government economies in the world are supported without income tax!  That’s right Florida and Texas have no state income tax.  They completely support the state governments with a sales tax.  It’s not even like the fair tax because it does not remove the hidden and embedded taxes form the cost of goods and services.
 

I have looked at the fair tax from many angles and at this point I cannot see any reason to not support it.

For more information on the Fair Tax visit www.fairtax.org

Here are links to a few previous posts that I have written about the Fair Tax. 
 

http://activerain.com/blogsview/754924/How-about-some-REAL-tax-reform 

http://activerain.com/blogsview/934776/Real-Estate-and-The-Fair-Tax

http://activerain.com/blogsview/932104/Will-the-American-Republic-endure
***************************
Here is another one in a series of short video clips about the fair tax.

Just for reference, in this series of ads the guy on the right is our current tax system and the guy on the left is the Fair Tax guy.  Enjoy!




*********************************************************
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money"                                                                                                                Alexis de Tocqueville 1805-1859

"Democracy and socialism have nothing in common but one word, equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude."                                                                                                                                                          Alexis de Tocqueville 1805-1859

Bob Southard, e-Pro, Realtor ®, Solid Source Realty, Inc. Buy a home, Sell a home, in Powder Springs, Marietta, Kennesaw, Acworth, Dallas, Hiram,and Cobb, Paulding, Douglas, North Fulton, South Cherokee, County, Ga. Call me for all of your real estate needs.

Visit my website

Call me for all of your Real Estate needs

770-656-9134

Copyright © 2008 By Bob Southard, All Rights Reserved

Follow Bob on Twitter , FaceBook, and LinkedIn