Replace All Federal Taxes on Income with the Fair Tax Act , HR 25
Rasmussen poll a FairTax roadmap
A few weeks ago the Rasmussen Poll found that 43 percent of Americans favor replacing the income tax system with an undefined national consumption tax! That’s real progress.
The poll was commissioned by an anonymous client to figure out whether a Value Added Tax (VAT) on top of the income tax system would fly with the public. It doesn’t. The idea had been floated out of Washington the week before the poll. Only 18% of those polled favor such a bad idea.
The idea of a VAT to pay for health care reform has been getting attention recently at the White House and in Congress and someone wanted to know how it would be received by the public. Most European countries, after all, use a VAT on top of their income tax systems. A VAT collects further taxes at each stage in the production, manufacturing and distribution process. It is a highly effective government strategy to further “embed” (and hide) taxes and the cost of government in the retail price of goods and services. Unlike the FairTax, the VAT is highly regressive, hides even more taxes from the public and has been put in place by government officials hungry for more dollars instead of by popular demand.
About the only thing that the FairTax and the VAT have in common is that they are both taxes based on consumption.
Interestingly and perhaps not surprisingly, most support for a national consumption tax in the USA (even an undefined one) comes from Republicans and Independents according to Rasmussen. Democrats are highly suspect of such an idea. This has long been a frustration for FairTax.org because, as we all well know, the FairTax helps everyone but probably helps those who are traditionally Democrat more than anyone else.
So why is Democratic support for the FairTax so weak? One word: polarization. These days, few ideas supported by Republicans have much chance for fair consideration by the left (and visa versa). Once most Democrats hear that Joe the Plumber, Neal Boortz and Mike Huckabee support the FairTax or when they take a look at Congressional support, they wrongly assume that such an idea does not even merit investigation. That is why we so often hear or read that the FairTax is, “regressive and unfair to the poor”. What is really revealed is someone who has not read page 2 about the FairTax prebate, elimination of highly regressive FICA taxes or the fact that the FairTax is far more progressive than the income tax system. For Pete's sake--it reimburses all federal taxes on those below the poverty line.
We love Neal, Herman Cain, Joe and Huck and will always value their advocacy of the FairTax, of course. Our support base grows because of them. But one side of the political spectrum will never be enough to enact the FairTax or repeal the 16th amendment so we had better find effective ways to reach across the political divide. Otherwise, we stump along on two unevenly sized legs.
The Rasmussen poll, while collecting information from the public about an entirely different and inferior form of consumption tax, has nevertheless given FairTaxers a peek into our national progress—and a roadmap for momentum. As satisfying as it may be to rail together against all those either ignorant or willfully blind people who can’t see the merits of the FairTax, our work is clearly needed to illuminate the idea to those now in the dark. That means newspapers, union members, teachers, community advocates and even local party officials.
It goes to the heart of what really makes America great.
Our passionate differences of opinion on the direction of the country have been happening from the moment we formed our great experiment in free speech, religious freedom and self-determination. I, for one, believe it is the argument, itself, that has made our nation so strong. The American people usually consider freely spoken differing points of view and usually find the right path. Those differences don’t disappear because of the FairTax but this is an unusual issue where we can find broad agreement despite differences in political philosophy—if we just talk to each other. It requires setting aside the passions that have divided us in the past. For the FairTax advocate, it requires patience, cheerfulness and an understanding that mistrust must be overcome for real progress to occur.
But restoring the proper role between citizen and government, making the cost of the federal government highly visible, saving American jobs and putting our economy on a path of robust growth for the good of every American is something that most Americans can agree about. Once we talk about it, it's not our neighbors who will slow progress on the FairTax; it is those in Washington, D.C. who profit so handsomely from the income tax system. The real battle here is between self-interest and the national interest.
The “political class” is adept at pitting us against each other and never so effectively as in debates about taxes. Let's face it--anger and indignation turn people out and win races. Our challenge, made clear in the Rasmussen poll, is to reach across the partisan divide and find common ground with those outside government. Not only is the FairTax good for all but no one from either party wants to be played for a chump by political power brokers. And, for all our differences of opinion, the plain fact is, we have more in common as Americans than we sometimes remember.
Those on the political left and the right have shed blood in defense of this country since our birth as a nation. Bravery, loyalty, invention, productivity and fair play are American virtues without respect to party affiliation. On the other hand, politicians on both the left and the right spend our money and our children’s money to buy our votes like there is no tomorrow. If there is a growing "difference" it is between those who consider themselves "American royalty" and all the rest of us. When this perspective begins to take hold, pundits, politicians and their savvy consultants start sneering at "populist" sentiments as if it were a form of communism. Both parties are equally threatened by the potential of the American people becoming unified.
The political class includes crooks and liars from both parties and always has. And to be fair, politicians from the left and right have been heroes and villians. The true genius of the American Republic can be found, however, not in Washington but in hometowns from Portland, Oregon to Portland, Maine. It is where our best ideas come from, where our companies grow, where people are still basically decent and where the political elite can be held accountable to the people.
If we want to see the FairTax enacted, we will have to reach across the political divide to begin speaking as one united American people. From many—one. This is how—and the only way—to overcome the destructive power of the new political "aristocracy" --both Republicans and Democrats--who put themselves above the best interests of the nation—and that, of course, includes Democrats, Libertarians, Independents and Republicans, alike.
The poll was commissioned by an anonymous client to figure out whether a Value Added Tax (VAT) on top of the income tax system would fly with the public. It doesn’t. The idea had been floated out of Washington the week before the poll. Only 18% of those polled favor such a bad idea.
The idea of a VAT to pay for health care reform has been getting attention recently at the White House and in Congress and someone wanted to know how it would be received by the public. Most European countries, after all, use a VAT on top of their income tax systems. A VAT collects further taxes at each stage in the production, manufacturing and distribution process. It is a highly effective government strategy to further “embed” (and hide) taxes and the cost of government in the retail price of goods and services. Unlike the FairTax, the VAT is highly regressive, hides even more taxes from the public and has been put in place by government officials hungry for more dollars instead of by popular demand.
About the only thing that the FairTax and the VAT have in common is that they are both taxes based on consumption.
Interestingly and perhaps not surprisingly, most support for a national consumption tax in the USA (even an undefined one) comes from Republicans and Independents according to Rasmussen. Democrats are highly suspect of such an idea. This has long been a frustration for FairTax.org because, as we all well know, the FairTax helps everyone but probably helps those who are traditionally Democrat more than anyone else.
So why is Democratic support for the FairTax so weak? One word: polarization. These days, few ideas supported by Republicans have much chance for fair consideration by the left (and visa versa). Once most Democrats hear that Joe the Plumber, Neal Boortz and Mike Huckabee support the FairTax or when they take a look at Congressional support, they wrongly assume that such an idea does not even merit investigation. That is why we so often hear or read that the FairTax is, “regressive and unfair to the poor”. What is really revealed is someone who has not read page 2 about the FairTax prebate, elimination of highly regressive FICA taxes or the fact that the FairTax is far more progressive than the income tax system. For Pete's sake--it reimburses all federal taxes on those below the poverty line.
We love Neal, Herman Cain, Joe and Huck and will always value their advocacy of the FairTax, of course. Our support base grows because of them. But one side of the political spectrum will never be enough to enact the FairTax or repeal the 16th amendment so we had better find effective ways to reach across the political divide. Otherwise, we stump along on two unevenly sized legs.
The Rasmussen poll, while collecting information from the public about an entirely different and inferior form of consumption tax, has nevertheless given FairTaxers a peek into our national progress—and a roadmap for momentum. As satisfying as it may be to rail together against all those either ignorant or willfully blind people who can’t see the merits of the FairTax, our work is clearly needed to illuminate the idea to those now in the dark. That means newspapers, union members, teachers, community advocates and even local party officials.
It goes to the heart of what really makes America great.
Our passionate differences of opinion on the direction of the country have been happening from the moment we formed our great experiment in free speech, religious freedom and self-determination. I, for one, believe it is the argument, itself, that has made our nation so strong. The American people usually consider freely spoken differing points of view and usually find the right path. Those differences don’t disappear because of the FairTax but this is an unusual issue where we can find broad agreement despite differences in political philosophy—if we just talk to each other. It requires setting aside the passions that have divided us in the past. For the FairTax advocate, it requires patience, cheerfulness and an understanding that mistrust must be overcome for real progress to occur.
But restoring the proper role between citizen and government, making the cost of the federal government highly visible, saving American jobs and putting our economy on a path of robust growth for the good of every American is something that most Americans can agree about. Once we talk about it, it's not our neighbors who will slow progress on the FairTax; it is those in Washington, D.C. who profit so handsomely from the income tax system. The real battle here is between self-interest and the national interest.
The “political class” is adept at pitting us against each other and never so effectively as in debates about taxes. Let's face it--anger and indignation turn people out and win races. Our challenge, made clear in the Rasmussen poll, is to reach across the partisan divide and find common ground with those outside government. Not only is the FairTax good for all but no one from either party wants to be played for a chump by political power brokers. And, for all our differences of opinion, the plain fact is, we have more in common as Americans than we sometimes remember.
Those on the political left and the right have shed blood in defense of this country since our birth as a nation. Bravery, loyalty, invention, productivity and fair play are American virtues without respect to party affiliation. On the other hand, politicians on both the left and the right spend our money and our children’s money to buy our votes like there is no tomorrow. If there is a growing "difference" it is between those who consider themselves "American royalty" and all the rest of us. When this perspective begins to take hold, pundits, politicians and their savvy consultants start sneering at "populist" sentiments as if it were a form of communism. Both parties are equally threatened by the potential of the American people becoming unified.
The political class includes crooks and liars from both parties and always has. And to be fair, politicians from the left and right have been heroes and villians. The true genius of the American Republic can be found, however, not in Washington but in hometowns from Portland, Oregon to Portland, Maine. It is where our best ideas come from, where our companies grow, where people are still basically decent and where the political elite can be held accountable to the people.
If we want to see the FairTax enacted, we will have to reach across the political divide to begin speaking as one united American people. From many—one. This is how—and the only way—to overcome the destructive power of the new political "aristocracy" --both Republicans and Democrats--who put themselves above the best interests of the nation—and that, of course, includes Democrats, Libertarians, Independents and Republicans, alike.
Replies to This Discussion
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Permalink Reply by Jim Tomasik on
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Ken,
After attending the NTU event last, it seems pretty clear to me that those in DC are not living on the same planet we are living on. They do seem to view themselves as a 'royal class'.
This is a very well written commentary on our current position. Thanks.
Jim
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Permalink Reply by Nancy L. Gatchel on -
I contacted Ken and requested permission to submit this to my local newspaper. I'd like to go a step further and submit something from you, as a Democrat. I would submit it at some point in the future after I submit Ken's piece above. If you can point me to any piece you've authored along the same lines as the article above, I'd really appreciate your permission to use it.
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Permalink Reply by Tony on
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I'm coming to that conclusion more and more each day.
They live in a bubble that is not part of 'our world'
I think for the benefit of the nation at this troubling time we need real people in Washington who have yet to be corrupted. If they become corrupted then fine.....but 'right now' we need people and not politicians.
Once they're in we take long term action/solutions!!
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Permalink Reply by Nancy L. Gatchel on
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Most excellent, Ken. Your piece goes to the heart of the matter, which is that politicians wish to keep us divided. Quite frankly, albeit simplistically, I believe the Fair Tax gives Americans the opportunity, once again, to unite and inspire us to further search for those other commonalities. United we stand, after all, and I'm thoroughly disgusted with the 'divide and conquer' techniques employed by our leaders and representatives.
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Permalink Reply by Dennis Wall on
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That 43% is great news. Thats 43% in favor of a consumption tax replacing income based taxes. Wait til they learn about "the prebate" and "jobs moving back to the USA" and "the interest rates being cheaper" and "drug dealers, the mob, or anyone else making illegal money getting to pay taxes like the rest of us" and "the 13 trillion dollars in offshore accounts freed up for investment into our economy" and "our American made products being sold overseas at 75% of todays prices and still getting the same amount of profit out of each item" and "the 50 million tourist that visit our country every year paying into our tax fund" and "the true transparency in Washington" and "the Politicians not being able to buy votes anymore" and "the citizen being able to keep every dime they make and spend it as they see fit" and "April 15th being just another beautiful spring day" and "having to hide under your bed to keep from getting a good job" and "Social Security being funded forever".
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Permalink Reply by Sean Fagan on
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Ken.
As always, a very thoughtful and well written message to all Fair Tax supporters. I don't know how I would even begin to express my appreciation for your clarity and direction. However (get ready, here it comes), I would like to ask how you propose we actually "reach across the political divide" and engage the good folks you mention.
I had the pleasure of working with Jim this past weekend at the NTU conference. Apparently Jim has learned what I've known for years (I lived there for 14 of them) - that the "beltway" crowd does not live in the same world as the rest of us; I also managed to learn a few things as well, like how necessary it is for us to be at all conferences of this type.
Admittedly the NTU event was pretty much in the conservative vein, but I came away from it with the knowledge and understanding that we have to do more to engage those who do not necessarily sit on the same side of the "political divide" as a lot of our members do. I myself had the pleasure of talking with a Iowan Democrat who was in favor of the FairTax and ready to offer whatever support he could provide.
FTN will soon carry the FairTax banner into the midst of the foray by attending the NAACP gathering next month. I think we would benefit greatly if AFFT was represented as well. In keeping with your comments, let us all go forth with the FairTax message and "proclaim it throughout the land and unto every inhabitant thereof". Any support that AFFT can provide I'm sure would be greatly appreciated.
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Sean, most in Washington will be the last to see the light--including most of the tax reform groups. But back home there are senior clubs, Rotaries, Lions, Chambers of Commerce, monthly union meetings, Democratic and Republican clubs, and many other gatherings hungry for speakers. How about a FairTax BBQ just for union members? By talking with our neighbors--by that I mean those who live in our hometowns--we build not just a base of conservative minded people but all people. That base leads to acceptance--under pressure--by legislators. Dan has it exactly right. Build the base and the politicians will follow--or pretend they've been leading all along. It's the Founding Fathers antidote to inevitable concentration of greater and greater amounts of power by any government, including our own. I love hearing about the NAACP plan--just great! Now, if only I could "beam" there without spending precious funds that we need for basic materials--bumper stickers, tri-folds, caps and shirts. Where's Scotty when you need him? I'm very tight when it comes to spending money for anything but our most critical needs. I'll get you a letter from us to the NAACP. I'd love to feature any pics on the website. And, I'll look forward to hearing about your results. Thanks for your work.
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Ken,
Thank you for the insightful and well written commentary. The replies are equally thoughtful. After reading all of them we need to realize having members of both parties sign onto the bill comes down to something we have repeatedly discussed in the past and have been doing since day one. We need to continue building the base through a growing grassroots movement. The bigger the base, the more people we have to exert more pressure on Congress critters to understand they either support The Fair Tax Act or risk losing their jobs to candidates who support The Fair Tax. Eventually we will have enough in Congress in who will help pass The Fair Tax Act.
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My wife is a nurse, who works from a float pool, in other words she works in whatever department she is needed most. Today she worked in the emergency room and the traffic was a little slow, all the doctors and nurses were worked up and angry about our government. She asked them if they had heard about the Fairtax. One or two had heard but didn't know much about it. Several left there saying they were going to look it up, and also they were going to a Tea Party somewhere on the 4th of July. I am surely hoping we all get a pleasant surprise and get huge turnouts at the Tea Parties. I wish there were some way all Tea Partyers would attend only the one at their "State Capitol". There is no way the "media" would be able to ignore a million people in each state capitol. Well the media might but I don't think our elected representatives would. In our state (NC) our state reps need waking up as much as the Fed Reps do. I know I am talking Tea Parties and not Fairtax here but when I here people that are mad about the goernment and I explain the Fairtax and its many assets they love it every time, most people are complacent and they will not go out and spread the word themselves but a lot will vote on election day. The Tea Party'ers will be more prolific.
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Dennis
I agree the tea parties can be an effective conduit for the Fair Tax. In fact they have been. However it is unrealistic to expect one million people at state capitals in small states such as Connecticut where the population is a little over three million. One third of the state showing up in Hartford on 7/4 is simply impossible.
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Maybe so but a lot of people are getting mad and if everybody could understand what I do there would be 308.9 million people out there.
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