24 April 2005

Tax & Social Security Reform

Since the State of the Union, Social Security Reform has been at the forefront of public debate. The President wants a fix that provides personal accounts for younger workers to keep part of their own money from the pay as you go system and invest it. He also want benefits and tax rates to remain unchanged. But how to do it. How can you take money out of the system for the personal accounts and keep tax rates and benefits the same? It is no mystery, the system needs more money but where does it come from? The answer is tax reform. In order for us to have reform in Social Security, the tax system needs to be reformed first. There is a plan that would eliminate the tax on income and create a tax on what we spend. It's called the "Fair Tax". The plan calls for 2 Constitutional Amendments to be adopted. The first, to repeal the 16th Amendment to eliminate and forever outlaw taxes on income. The second, would establish the consumption tax. This tax would be paid only on new end user consumer goods. By eliminating the taxes on incomes, it also removes many hidden taxes that the consumer pays and never sees. Hidden in the price that you pay for a widget, is the cost of material used to produce it, the cost of the process used to produces it, the labor cost that it took to produce it, and employment costs the employer paid on the labor. And that is all factored in before the manufacturer's profit, the wholesalers costs and profit, warehousing costs, the retailers costs and profit all of which have employees involved and employment taxes that have to be paid on those employees. The "Fair Tax" eliminates all those hidden taxes and thus, lowering costs. Lower production and retail costs means lower prices to consumers. Lower costs and the elimination of taxation means more capital available to develop new products. New products mean expansion. Expansion means more jobs. More people working means fewer people on the taxpayer's dime. Which in turn saves the government money. More people working also means more people spending. More people spending means more revenue for the government. Money that could be used to shore up the failing Social Security program and give everyone what they want. The details of this plan are extensive and I'm just totally unqualified to relate them. However, the plan is laid out by Americans For Fair Taxation. Their website spells out the particulars to the plan. If I read the information correctly, it will be employers shopping for employees instead of the other way around. To not have a job will be intentional. Jobs that have left our borders would return. Because doing business in the United States would be cheaper. And if our foreign partners have the sense to follow our lead, economic growth on a global scale would be enormous. Check it out. Sign the petition and let our leaders know we want this. Help Put A Stop To The Most Dangerous Organization In America. We are trying to organize a march on all of the ACLU state offices in all of the 50 states. To help in this matter, we are trying to raise money to pay for advertising in our nation's newspapers promoting the march. You can help. Visit Bulldoze The ACLU online store and buy a bumper sticker or t-shirt. All of the proceedes will be going into advertising for this march. Thank You.


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