Following letter by Ted was published in The Daily Record June2 — http://www.dailyrecord.com/story/opinion/readers/2014/06/02/fair-tax/9802775/
I further expand on former state senator Ray Bateman’s argument that it is poor economic policy to tax the rich to the point where they leave the state. This not only takes away state revenues from their exit but also diminishes future revenues from the jobs many rich entrepreneurs create. In the end the state suffers from punishing income taxes. Tax more income and thereby expect less of it.
New Jersey should eliminate the state income personal and corporate taxes, thereby reward success (income), encourage more of it, and subsequently grow the economy along with more revenue potential for the state. New Jersey should then closely implement, at the state level, the Fair Tax. The idea is to replace income taxes with revenue neutral consumption taxes on new products and services. This tax reform at both the state and federal level would more strongly grow the economy, add new jobs, and thereby provide governments adequate revenue sources. Annual budget deficit woes may then finally become just memories.
Ted recently had a letter to editor posted in the Daily Record – Morristown NJ local paper – again regarding the Fair Tax. Below is the letter and link along with comments that followed on-line. I invite all to join this debate and answer one question Ted raises:
Main argument here is that current tax system unfairly benefits large corporations. I propose the fair Tax as a remedy. To all readers – please propose your remedies, would love to read about them.
Alex Pugliese is absolutely correct in his letter stating that “Capitalism works, when not playing favorites.” The current tax code by itself is a huge impediment to a more free market capitalist economy. Approximately $900 billion of annual corporate and individual tax deductions are of dubious value to economic growth. Many of these tax deductions are for large corporations. This mainly insulates them from threats from new, small, innovative companies. As a result our economy staggers. Clearly tax reform is needed.
The most promising tax reform alternative is the Fair Tax, now in Congress as HR25. It eliminates all personal and corporate income taxes, deductions and breaks, regressive payroll taxes, the IRS, and gruesome $430 billion annual compliance cost. It replaces that with a revenue neutral consumption tax on new products and services.
All will receive monthly prebates up to the poverty level to offset the consumption tax and render a progressive tax structure. Results will include domestic and foreign entrepreneurs investing in new industries, companies, jobs, thereby creating more wealth for all. To learn more please visit www.fairtax.org.
Fix #ObamaCare Now!
An immediate fix to our worsening health care plight can be accomplished as follows.
From congress 1 Democrat and 1 Republican will propose and immediately push through:
Strengthen private insurance industry and increase competition and thus decrease costs by allowing all to contract with insurance companies across all 50 states.
Revert all ObamaCare insurance regulations except for these regarding pre-existing conditions. Yes – allow consumers freedom of choice. It is ok for a healthy 25 year old to opt for only catastrophic insurance. Why must a 25 year old pay for colonoscopy insurance? Why must a 60 year old woman pay for maternity care?
For the poor, increase funding for Medicaid and Medicare by as much as 50%. Yes – this will cost billions and increase federal taxes for the (only 50%) that pay them. But we must provide better quality care for the poor. We are still a nation of strong morals. ** I will need to calculate the total net cost of this.
What about those who choose not to buy insurance or cannot? This may be 30 million. Continue to allow them to utilize ER services when needed. Allocate a risk pool fund of $30 billion per year to handle this. Care from this pool will not be as thorough or available as those who pay for insurance. Hence it will be an incentive for those who can buy insurance to do so. Why $30 billion per year? Project 10% will require quite extensive coverage and thus multiple 3 million by $10,000; this is $30 billion. This is just a rough projection and can be made more accurate.
Much damage has been done to current health care industry. It will be expensive to fix it but we must. Otherwise it will be extremely expensive and destroy our private health care industry, our world leading health care and tank our economy.
To leave our health care as is? More have lost insurance than gained since Oct 1.
Sign up for #ObamaCare and you may be signing away your identity.
Many who expect to have signed up for insurance may find out Jan 1 that the insurance companies were not able to process applications due to web site back end processing bugs. What about revenues for the insurance companies? How about uncertainty among all corporations about ObamaCare impacts in late 2014 and 2015? Any of these by themselves can tank the economy and cause long waits for health care services. It is time for brave bipartisan team to tell BO this debacle is enough! We will pass legislation veto proof to save our economy and health care.
How about Democrat Senator Joe. Manchin and Republican Senator Kelly Ayotte; both are very bright and moderate. Some must step it up now! Time is of essence.
Dec. 8, 2013