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

The fair tax and home ownership

I believe that there would be benefits to the entire economy by implementing the fair tax. Just imagine the economic power of every American keeping 100% of their paycheck! ....Plus every American getting a "prebate check" every month to off set the tax on essential items.  

But what about my home interest deduction?

As the  Fair Tax relates to residential real estate this is the question that always comes up.  Here is the condensed answer.  Under our current tax system we make our mortgage payments with after tax dollars.  That is, our paycheck is taxed and then out of our take home pay we make our mortgage payment.  At the end of the year we can claim a deduction for interest that we have paid. Many people understand the benefits of using pretax dollars  for savings and investment.  Think of your 401k. (not it's reent performance, just the concept of a 401k (-:   ).  One of the big benefits that is always promoted about joining your company 401k is that you are able to contribute pretax dollars toward your investment.  You get an immediate return because those dollars are not taxed ( until you withdraw them later on  anyway).  Instead of encouraging debt and worrying about interest deductions your entire house payment PITI is paid with pretax dollars! You don't need to worry about your interst deduction because your entire payment - not just the interest - avoids any tax!

The Fair Tax encourages savings!

For the past many, many years Americans have been saving at a negative rate. Since the fair tax only taxes what we spend, money contributed to savings is not taxed. I can see at two immediate benefits to real estate from this.  ONE - people will once again start saving money toward a down payment.  Two - money will flow in to banks.  Instead of the gov't allocating money to recapitalize the banks they will actually have money from their own customers!  Loans for mortgages, cars, business expansion, etc. will be be more common and available.



For a very detailed analysis of the Fair Tax and housing check this out - Diamond, John W.; Zodrow, George R. (May 5, 2008). "The Impact of H.R. 25 on Housing and the Homebuilding Industry". James A. Baker III Institute For Public Policy.

For more information about the Fair Tax visit www.FairTax.org

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

Last fall, during the Presidential campaigns, I got pretty fed up with BOTH candidates using the tax system as a means to buy or influence how I vote.  You can read my entire article here.  

“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

Was Mr. de Tocqueville right? and if so are we on our last days as a free republic?

Here is another one of his quotes:

"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

We are granted the right to life, liberty, and the pursuit of happiness ...“Whenever any form of government becomes destructive of these ends life, liberty, and the pursuit of happiness it is the right of the people to alter or abolish it, and to institute new government...”                                                                                                                              
 Thomas Jefferson

"Economic Justice can best be won by free men through free enterprise.."
C. William Brownfield  1946

So where am I going with all of this...?  Well, originally I was going to do a simple post about about the benefits of the "Fair Tax" for the real estate industry and home ownership.  Obviously I have already digressed from that.  One day I will get there ... I promise.  

Freedom is never more than one generation away from extinction. We didn’t pass it on to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children what it was once like in the United States when men were free.
Ronald Reagan

*********************

Life, liberty and the pursuit of happiness. No guarantees- just opportunities. The roller coaster of life can sometimes be a wild or scary ride. Personally I have ridden the highs and lows, taken some fast curves, and there are times when I just wanted to puke.  But all of those times, both good and not so good, are part of the fabric that makes me who I am today.  Sometimes it was not fun, sometimes downright painful, but where the scars are I am stronger.   I do not want a government that tries to guarantee happiness for individuals or business.  I want a government that allows every person and every business an equal opportunity to succeed or fail.  

Thanks for listening :-)
***********************************************************
Ok while I'm here let me go ahead and throw out one idea... it's my money, let me spend it, save it, or give it away.

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

Life, Liberty, and ...

See what Herman Cain has to say about Life, Liberty and the pursuit of  happiness!

If  you have never heard of Herman Cain, or even if you have, check this out       this video
http://www.youtube.com/watch?v=Hya-UpeZANc

 There was no embed code provied so just click the link.

Mr. Cain is now a radio talk show host but you can see from his bio that he is an accomplished businessman and one heckuva smart guy. He ran for the US Senate 6years years ago.  I am proud to say that I voted for him. His no nonsense doen home approach would have been a great thing for Washington. By the way the video is from 2006.  He was talking about "Change" before change was a political buzzword!

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

******************************************

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

Do we need to simplify our tax code? Does anybody really understand our curretn system of taxation?  I think this guy can explain it.  As the head of the department of Treasury (including the IRS) I'm sure he gets it ... right?

******************************************

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

 

Country Walk

Chili Cook Off / Super Bowl Party

 

Powder Springs, Ga. - The Country Walk Super Bowl Party and Chili Cookoff was a great time for all who attended.  We had 6 pots of great tasting chili competing for the grand prize plus neighborhood bragging rights.  This years winner was something just a little different … Barbara’s award winning “white chili”.  Thanks to everybody that attended and participated 

 

 

 

After the Chili Cookoff we all migrated in to the clubhouse to watch the big game.  Chef Rian MacDonald prepared a great spread of food and snacks and some of our neighborhoods brought some goodies as well. Good food, good commercials and it was even a pretty good football game!

 

 

 

Special thanks to CW residents Johnny Reagan of JJRocks DJ services and to Chef Rian MacDonald and his wife Lauren for all of the help.  It was a big that would not have been possible without them.

*******************

Country Walk is a fantastic, active, swim/tennis neighborhood located in the heart of Powder Springs, Ga.

******************************************

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