NEW YORK (Fortune) -- This week, I posted a story on Fortune.com saying that a Value Added Tax is fast becoming the only option America has left to solve the current fiscal crisis. In the piece, I said that former Arkansas Governor and leading Republican presidential contender Mike Huckabee favors a VAT to replace the income tax.
I received numerous angry emails stating that the ex-governor advocates a solution called a "Fair Tax" that's quite different from a VAT....full article here
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my comment:
Good to see this article. It is one step towards liberty. The VAT is poison in that it will add sales tax on top of what we already are paying.
The FairTax is not Governor Huckabee's plan, but the Governor is the smartest out there to embrace it. FairTax is the creation of the top minds in America 20 years ago and it has had over 20 million dollars spent on analyzing it.
When President Reagan gave us the Free Trade Policy, literally removing the closed boarder for trade, we left in place the convenient tax structure on production which is built into the cost of domestic manufacturing product. Imports evade this tax, thus the great shift of manufacturing overseas. We were ignorant to allow that to happen and those who took advantage of such action now have their business moved overseas and do not want it to be changed.
VAT leaves all the hidden tax in product, thus will do nothing to create jobs in America. FairTax eliminates tax from domestic product and equals the Federal Tax on all products including imports. It will create more jobs then one can imagine. What a problem to have, employee led inflation.
VAT will further empower Washington DC , thus the very reason that the FairTax is the leading plank in their movement. VAT will move our 37% of GDP taxation by DC to 50 to 60%. It will further destroy our liberty and freedom.
FairTax is an indirect tax that will empower we the people with our congress having to once again represent them and not the lobbyists who will have no business to bribe Congress with if the tax code is changed to the indirect tax of FairTax, a tax that our Founding Fathers insisted on to keep Government from becoming a Tyranny. What we need to do is repeal all of the 1913 Congressional actions.
Also, the FairTax Act HR 25 and SR 296 demand the repeal of the 16th amendment within six years to remain the law of the land. The FairTax structure itself is constitutional and may be passed by a simple Congressional vote. The very reason for repealing the 16th amendment is to avoid the VAT. The VAT would be the final death blow to our Constitution and the Sovereignty of the States powers.
With the Washington Federal powers changing their attitude to embracing Constitutional conduct and with the enactment of the FairTax Structure, America will once again become that Shining City on the Hill.
George
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