Fair Tax Would Stanch Flow of TARP Money Abroad

Here is an idea for a letter to your local editor:
~Jim

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In another development highlighting the need for the Fair Tax, Congressman Dennis Kucinich (D) OH-10, excoriated the Treasury Department last week for failing to adequately trace banks' use of taxpayer bailout money. The criticism included a $8 billion Citigroup Inc. loan to Dubai, a $7 billion Bank of America investment in China Construction Bank Corp., and a $1 billion investment in India by J.P. Morgan. Although the transactions are not illegal, Kucinich criticized the channeling of taxpayer money to foreign governments rather than the domestic economy.

If we had the Fair Tax, Kucinich would stop complaining, and it would be unnecessary to hit the banks over the head with a federal billy club.

The Fair Tax is a bill in Congress - H.R. 25 - to replace payroll, estate, gift and generation-skipping taxes, as well as corporate and individual income taxes. The Fair Tax replaces these taxes with a progressive national retail consumption tax. By un-taxing business and investment in a way that remains fair to low-income individuals, the Fair Tax, overnight, makes the United States the tax haven of the world.

With the Fair Tax, the banks would voluntarily invest money - taxpayer and otherwise - at home.

~Jim Bennett
Mr. Bennett is the New Jersey State Co-Director for the Fair Tax