Tax Reform (Fair Tax) Would Yield Many Benefits

The Daily Record published my letter in support of tax reform, specifically for the Fair Tax on Friday January 18 (full text below along with link where there was more discussion on-line).   ** also please note that you have an opportunity to sign a petition mandating a formal meeting and response by Obama regarding the Fair Tax. We are more than half way to the 25,000 electronic signatures required and then Obama is forced to meet with us.

Link of letter and blogging


I totally agree with Sally’s point (per her letter few days ago) that the recently passed bill to increase taxes with virtually no spending cuts does nothing to improve the economy.  Tax increases almost always result in less economic activity, less jobs, hence less tax revenues.  In November the middle class voted to fully fund core entitlements and to keep their taxes stable. Neither are possible with the current fiscal policy and tax structure. We cannot borrow from abroad indefinitely. We need to grow the economy more strongly to generate more revenue. The US therefore should look to the Fair Tax (bill in Congress as HR25).

Fair Tax eliminates all Federal payroll and income taxes and dubious tax deductions, replaces that with consumption tax, sends prebates to all up to poverty level to keep tax system progressive, eliminates IRS and $430 billion annual compliance cost. In sum, it will upgrade our wasteful archaic tax system and replace with a system that rewards success (income) and encourages more of it. The zero income personal and corporate tax rates will result in a more productive private sector of economy thus propel US economic growth back to more normal ranges of 3-5% growth up from what was 2% last year. Yes – eliminating dubious corporate tax breaks that feed crony capitalism will shift our private sector to be more competitive, hence grow our economy more strongly allowing for more tax revenue to fund core entitlements and spending priorities.

Best details how Fair Tax would impact nation and you personally — – click on Fair Tax.

About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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