The foundational purpose of switching to a consumption tax verses the production tax or labor tax which is taken directly from the worker without even owning it, is to get jobs. When the employer pays the federal taxes, he has to recoup those taxes by placing the cost of the Federal tax into the price of the domestic product. We are handicapping our own industry in America by using the old closed border tax we had when Reagan gave us Free trade. What has happened since then? We have lost industry, watching it be distributed to the world. We should have switched to an open border tax structure, like FairTax, 30 years ago. Incidental, FairTax came about at that time and has been tweaked for 30 years and has had 20 million dollars spent on it vetting its worth.
We want Jobs? Getting more of the same song and dance from the coupe Federal Government is not the answer. Under Reagan congress gave us a flat tax to help stimulate the economy. What it stimulated and the current flat tax proposed will do also, is it gave congress the ability to sell graft tax wavers at the tune of over 1,200 amendments to the IRS tax code. The current new flat tax is what is known as the reset button, to recycle all that corruption to fill Congressman campaign funds. They don't want you, the Citizen to benefit from a tax structure change, but to keep their evil ways of greed. Demand we go to the FairTax and bring back sanity in the Congress, as they will suddenly have we the people to cater too, rather then a slew of lobbyists with nothing to present as bribes.
Alexander Hamilton stated that the least burdensome tax structure is the sales tax as if you cannot afford to pay it, you don't have to. The charts show that the 90% of the people will benefit from this new FairTax plan. Those who are criminals or illegals, under the table will suddenly have to pay their fair share. That is how 90% benefit from a tax neutral change in tax reform. We need our industry jobs back and fairtax will bring an approximate 15% price advantage to domestic made in the USA products over imports. The Steel industry touts that it only takes a 10% advantage to put them back to work.
Don't let the communist Marxist progressive income tax fool you into thinking it is your friend. Most rich people do not pay taxes as they have either bribed congress for a waver, taken their money off shore to hide it and most importantly, most do not make incomes. Wealth is not taxes, unless you tax their spending. Also, if you just seen the 60 minutes show on corporations hiding their wealth off shore to avoid taxes. Remember, they took our industry offshore for the very same reason, to avoid federal taxes by importing the very product we used to make. We are to the end of this rope and no raising of taxes or cutting of spending can save us from what is coming. Only changing the tax structure to a consumption tax will do so.
If everyone knew all there is to know, they would not do half the things they do, including myself, therefore I must foregive them, including myself.