As the 2012 Presidential Election becomes a two-person race, improving the nation’s precarious fiscal situation must be the candidates’ top priority. There are several issues the candidates must address in order to return the U.S. to its former glory as an economic powerhouse. These include: the repeal of harmful legislation, an equitable tax system and the abolition of the Federal Reserve.
One of the first ways of beginning that process would be to repeal all of the anti-opportunity legislation that has been foisted on the American people in the past few years. For example, we could repeal the McCarran-Ferguson Act and allow health insurance providers to compete openly for customers on a national basis. Allow health care providers to compete in the marketplace, charging for their services what the market will bear instead of what the insurance company will reimburse. This would bring more market pressures to bear in the health care industry and bring costs down. If it were coupled with meaningful tort reform legislation that would curtail frivolous lawsuits and shift legal costs to the losing party, we could have world-class health care that was available and affordable.
It is fairly obvious to most American citizens that the U.S. Tax Code has become a truncheon used to beat the American people into lockstep. The actual legislative code is more than four times the length of the Christian Bible and is full of incomprehensible and contradictory exceptions and exemptions. It is an unjust piece of legislation that hinders and manipulates economic activity. It is enforced by an agency that is far too often the antithesis of the basic American principles of due process and equitable justice.
The time has come to replace this punitive tax system, which seeks to appropriate a portion of our income with a tax system that collects revenue on positive economic activity only. In that way, legislators would be less inclined to pass laws that inhibit economic growth or penalize success. Their actions would have a direct impact on the amount of revenues generated.
The FairTax provides people the option of opting out of taxable activity without inhibiting economic activity. It also fairly distributes the burden of supporting government across everyone who reaps the benefits of our society, everyone who chooses to purchase something new without regard to the source or amount of the customer’s income or other personal information.
The FairTax gives everyone an automatic pay raise because of the elimination of all forms of income tax, including individual and corporate income tax, capital gains tax, and estate taxes.
It is a replacement for the existing tax system with an embedded personal consumption tax of 23 percent of all goods and services sold at the retail level. It is not collected on the sale of used or previously owned items, only new transactions.
If a person worked 40 hours for $10 per hour, his paycheck would be for $400, instead of the $292 it probably is now. The average 22 percent of business taxes that are currently embedded in everything we purchase would be eliminated. And everyone would receive a monthly payment to cover the sales tax up to the poverty level.
Once enacted, the FairTax law would immediately repeal the Sixteenth Amendment, and the Internal Revenue Service would effectively become a bookkeeping department for the Treasury. The number of attorneys in Washington, D.C., would plummet because there would be no reason for many of the lobbyists on K Street to continue operations.
Congress has shown that if given the choice between incrementally increasing the tax rate and dealing head-on with overspending issues, they will increase the rate. Plus, with the flat tax, we would still be competing with lobbyists and special-interest groups for the undivided attention of our duly elected representatives.
The Federal Reserve was chartered in 1913 in response to public clamor over bank runs and credit deficiencies. Its stated purpose was to manage the government’s monetary policies and hold inflation in check. In reality, the central bank shields the commercial banks in its cartel against true market competition and enables all banks to expand together so that one set of banks doesn’t lose reserves to another and is forced to contract sharply or go under. The Fed enables its cartelized commercial banks to inflate money and credit together by pumping reserves into the banks via demand deposits and bailing them out when they get into trouble. This creates a false sense of prosperity with easy credit, which leads to excessive risk taking and overleveraging—boom and bust. The only way to stop the cycle is to eliminate the cause: the legalized counterfeiting that constitutes and creates the inflation.
Liquidating the corporation that is the Federal Reserve and returning to a monetary system based on a market produced precious metal, like gold, which is represented by a currency printed and managed by the U.S. Treasury Department as stipulated by our Constitution. The assets currently owned by the Fed should be liquidated and parceled out on a pro-rata basis to its creditors. All we need is the will.
We should make it crystal clear that Americans are fed up with funny money, bailouts, and crony capitalism. Any efforts to disrupt our national economy by an outside agitator should be looked as a threat to our national sovereignty and dealt with accordingly with extreme prejudice.
People succeed or fail on the merits in America, not on who they know or whose reelection campaign hey supported. This absolutely American principle must be reestablished and permanently fortified.
There can be no more “too big to fail.” If you are reckless, greedy, and arrogant, the American taxpayer should not bail you out.