Monday, December 28, 2009

Note to my Rep. about the Fair Tax

Here is a note to my COngressional Representative about supporting the FairTax.

What are all of your thoughts?

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Thank you Rep. McClintock for your response and for your promise to keep an open mind on the issue. While I am a Civil Engineer mostly involved in Residential Design and structural engineering, due to the current economy, I became a Professional Tax preparer for H & R Block part-time last tax season (and start again here in a week or so). Even before this experience I was for a consumption based tax system and for the repeal of the income tax. Even more after seeing firsthand the system that so many try to cheat (and succeed, due to lack of moral character in our society). I wish it were different, but in a sense I see Harry Reid’s comments about tax being voluntary as somewhat true.( http://www.youtube.com/watch?v=H6q0slMhDw8)

We so need a tax system based on consumption (i.e. Fair Tax)and not one based on a “supposed” income like the flat tax system you mentioned. So much of the income is unreported. I know the argument that people will remain immoral and just buy good on a new “black market”, but I do not believe that the resulting “missed” tax revenue will any way equal the current fraud in the system that is based on income.

Since I am fundamentally against a Flat income tax system I am unaware of what that system would do to the also current Capital gains and Corporate tax systems. The Fair tax proposal would abolish those taxes also which would spur a reinvestment in the US economy and level the playing field with many other nations. We all know that while Corporations actually pay the Corp. Tax it is just a number for the bottom line that increases the costs of the goods, Also many of the embedded “hidden” taxes in goods would know be transparent or non-existent. I just cannot see anything wrong with the Fair Tax system except what people say “it is too good, and therefore will never happen”. We need a revolution in thought and in action and I hope you can be a part of it.