All business shifts the corporate tax to the consumer in the product price. Tax them high enough and you make the business not competitive, like our embedding of all our federal production are, including your own taxes paid, which means you put any tax on the production side of a product and you will pay that tax again, with no benefit to anyone, except importers who avoid the federal production taxes.
Best to tax imports equally with domestic goods and level the playing field, don't you think? Read this through and it will dawn on you how we have been allowing our cashflow(net pay) to be the actual tax payer, as even the employee taxes are passed on into the price of goods made in America. So paying wage taxes and buying American brings the average taxes paid to about 44% of our gross pay.
Here is why we are fiscally failing and how the proposed flat tax by the Washington establishment will not fix our future:
The reason our Nation is failing fiscally is because we left in place a production tax structure meant for closed borders to trade. When we went to free trade, we left the production tax in the price of our own product, whereas we should have switched to the consumption tax meant for open borders where the imports share the tax burden as well as domestic goods. If we change to FairTax, American manufacturing will appreciate a 17% advantage to imports with wage earners bringing home gross pay and free to volunteer where they pay their federal tax by which consumption they deem needed.
In reading the below, keep in mind that 22% of the price of domestic products is hidden Federal taxes. Even a loaf of bread contains these embedded taxes, if not imported. In a closed border, it would not matter to keep our current tax structure, as the Nationalist GOP wants such as leadership of group Freedomworks in a plan they call flat tax, but we have freetrade which handicaps American Industry. Thus we need an open border tax structure as explained below.
Where did we go wrong:
Before W.W.II this Nation was a closed market to imports. The framers of our current tax structure did so under the Americans consuming only domestic manufacturing, I imagine using the production tax system was a convenience since the bookwork was already in place and under management control. Then we opened our trade to Japan, making for free trade. This gave the American consumer a boost to their cashflow, making for more spending in other areas and though we lost a few jobs, the increased cashflow produced many more jobs.
President Reagan then introduced free trade to the world and opened our border to duty free import. No thought was given to the production tax structure in place and the new surge of cheap goods made for even greater prosperity to the American consumer, while again eliminating some jobs, but at the same time we had new technology introducing new avenues of employment, thus the excise production tax on domestic production had minimal effect. During the period after, companies were being cannibalized for short term profit as their competition from imports was cutting into the profit margin and causing little advantage to stay in business. These companies were closed, jobs being eliminated, as the scavenger Companies bought them up and sold them for parts or took the parts overseas to open up manufacturing to import and feed the open accounts of buyers of the closed companies products, in a duty free, production tax free advantage and at a high markup profit.
The slow demise of manufacturing in America has grown and the need of social programs from the Federal Government to prop up the American dream continued to grow, expanding deficit spending and hidden inflation. This perpetuated the domestic excise production tax, furthering the handicap of American manufacturing. The need for additional income into Families also grew, demanding more then two spouses could produce to keep up with the standard of living and regulations and license fees, insurance costs, to a point where a majority of Americans are now in a fiscal struggle living paycheck to paycheck, if working. Jobs have become hard to find, many being entry level service jobs without any ability to advance or receive adequate wage. Jobs are at a premium, even with a low reported unemployment level, which does not report and hides many who have slipped from the employment rolls due to years of job seeking frustration, especially in the urban and rural areas.
Now we find ourselves being tempted into becoming what we fought for years with our own blood to push back, fascism, Communism and the Tyranny of Government, with the promise of fiscal security. The American Dream is on life support in need of a true free market, one of which fair trade exists. The cost advantage of foreign imports over domestic by continuing with a production tax is about 22%, the amount of hidden tax in domestic goods.
Time is of essence, that this very hour, this Nation is about to fall. The World Government proponents are about to make their final push for world dominance through one world currency. The Marxist of the world have moved into leadership positions in coalition with the One World Shadow, the Democrats and RINOs in the GOP the pawns of the One World Government advocates, nationalist by their acts. The old media has joined or is owned by both powers and is a major instrument of this Coalition and is making for a unique threat to the U.S. Constitution.
The only way to prevent the above from fulfilling their mission to dominate this Nation and the World is to offer change to the American worker and Family a grand demand for their employment, jobs, jobs, jobs. Only then will the chain of despair be broken. The Conservative Movement must center all it's will on fixing the failing tax and trade structure of this Nation. We must lay down the plank of the Fair Tax Plan WWW.fairtax.org to the Democrat and Republican Grassroots and educate them across into a Party totally centered on the character and values of the Founding Fathers, presiding under the Constitution as written through the demand on the Judiciary to be of good behavior as instructed in the Constitution and defined by Alexander Hamilton in the Federalist #78 Document. http://www.constitution.org/fed/federa78.htm
One of the huge barriers to bringing about Constitutional sanity to our Federal spending is to transition SSI, Medicare/aid and the socialist health insurance plans of today is to implement transition to HSA/IRAs when FairTax is implemented ending payroll deduction and we the people get our gross paycheck. More on this here:
http://rgeorgedunn.blogspot.com/p/obamacare-rations-senior-healthcare.html
The Fair Tax is the Salvation of the United States of America and it's Constitution of liberty and Freedom of We the People. Make it so:
Operation FairTax — It is time for FairTax to lead us out of this mess we have accumulated since the 1913 Congress led us into this trap.
George
George, The real point where we went off course was much earlier. The world bankers finally got what they wanted in 1913. They first played class war games to get Congress to enact an income tax on the "rich". They then played their game out to get what was their largest desire. They convinced Congress to allow them to create a central bank, knowing all along that this would allow the banks to create money. The income tax was to pay the interest on the newly created money which the banks would loan to the government so the creation of programs and fighting of wars would enrich the banks. Once we allowed these we were doomed.
ReplyDeleteThe path off the precarious limb the USA is on
Deletehttp://rgeorgedunn.blogspot.com/p/constitutional-conduct-will-eliminate.html
Without a doubt, Cary, the 1913 Congress did more harm to the USA then any other. I must confess I know nothing about the monetary system, but that we have established a Federal reserve that has an independence that is easily able to hide it's profits, thus stealing from we the people.
ReplyDeleteThis history as to how we got to where we were and are, still does not remove the fact that we are trying to compete with imports based on these outdated or corrupt tax structures. By taking the tax out of domestic product we begin the path to recovery.
We also need to end unconstitutional spending and repair our monetary system. Had we remained on the precious medals, we would be not facing the inflation we are about to experience.
You folks have to know something. The income tax has nothing to do with "tax". It has to do with control. The income tax allows the government to have total control over us. They use it to reward and punish. It gives the government immense powers. The only way FAIR TAX will become a reality is to find candidates that will give a written oath before they elected to switch to the FAIR TAX after they are elected. Even that may not work. If it doesn't then it's time for the cartridge box.
ReplyDeleteSincerely, Daniel Johnston
We are truly at the most critical point in my lifetime as far as survival of this country as we have known it. I was never in fear during the cold war because I had faith in our leaders for the most part. We were taught in school to love our country and the principles it was founded on. How could Ike not be taken seriously? Pay taxes to public schools who punish American Students for wearing T-shirts with Ole Glory? How could these signs of tyranny and anti-Americanism be tolerated. I fear the apathy in this country has put us on life support. So many people today believe it's the government's responsibility to provide for their needs, they've been taught to be lazy. I'm going to stop now, but I appeal to you all, let's TAKE OUR COUNTRY BACK!!!!!!!!Anyway, our tax system must be overhauled. I am in favor of eliminating the federal income tax, the IRS, and going to a national value added tax on new hard items only, not on food, clothing or anything used. That way we will all pay our fair share of taxes based on what we spend for new products that we buy. We must also penalize China for manipulating currency values and they have been given a free ride on tariffs long enough. They must be relieved of their "Most Favored Nation" status. President Reagan would have told them to go pound sand. I'm only commenting as "anonymous" to fulfill profile requirements. I am JAG GAYNOR
ReplyDeleteAny small incremental tax rate on one's income requires the publishing of 1099 documents describing every buck of such income. That is the part which should have been considered sacrosanct. A taxation that produces revenue without prying into specifics of where and how income is derived is both labor saving and freedom enhancing. Even a sales or VAT tax does require cash register tapes on consumption trends, but is not so in your face. If the newly freed communist satellites who are now students of free enterprise can sustain themselves with flat taxation then we ought to try adopting that simplified system.
ReplyDeleteGot a candidate for Ohio's new 10th District (John Anderson) who has a contract with the voters he is going to share soon. Item 3 is open support for the FairTax. Get you candidates and incumbents to do something simular or kick their butts out!!
ReplyDeleteFrank Gilbert
Fairborn, Oh.
Working backwards: Frank (anonymous #4) is right. And there is a good method that has worked very well so far. On the internet radio show FairTax Time, which airs each Wednesday evening, we have vetted many candidates for the FairTax since April, 2011. Get off the couch and participate. For details: http://www.fairtaxtime.com/FTT/
DeleteAnonymous #3: a flat tax will still leave 70 million people free to not pay. The FairTax will collect from them (visitors to the country, illegals that don't contribute, illegal businesses , and the shadow economy . Under the FairTax, since everybody pays, everybody pays less.
Anonymous #2 (Jag): The FairTax (HR25/S13) will accomplish what you want without compounding taxes in the manufacturer-->consumer chain. It will also level the playing field with China and all other countries by not taxing business-to-business transactions in the U.S. and in so doing, it will repatriate many businesses and trillions of offshore dollars.
Anonymous #1 (Daniel): Right on, brother! See reply to Anonymous #4.
Everyone: There is a wealth of info at http://www.fairtax.org/site/PageServer, and you can learn how you can help at http://www.fairtaxnation.com/. Thanks for the pulpit, George.
Another stellar article. Keep up the good work. :)
ReplyDelete