Tuesday, November 06, 2007

Urban Michigan Needs a FairTax by Akindele Akinyemi

Are we openly talking about the Fairtax Legislation that is on Capitol Hill right now? For those who might not know what a Fairtax is it is a a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment.

This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax -- administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

I am in support of this because the FairTax will tax undocumented workers who now evade U.S. income and payroll taxes. Under the FairTax, all persons living in the U.S. pay taxes, whether they are here legally or illegally.
Under our current tax system, many non-citizens do not pay income and payroll taxes, even though they are here earning wages and are legally required to do so. They may also be receiving benefits in the form of health care, education, roads, and much more. Under the FairTax, both lawful and unlawful residents will pay taxes when they purchase goods and services for consumption here; however, only lawful residents are eligible to receive the FairTax prebate which effectively eliminates taxes on spending up to the poverty level.
The tax code in this country must be repealed because it is a very complex code that no one can understand. This code has more pages than the Holy Bible.
How ridiculous.
In Michigan, there is talk about repealing the current service tax because so many people (including myself) are pissed off about it. How can Gov. Granholm continue to tax more of us when unemployment is at 7.5% (the highest in the nation)?
We need to repeal our own tax code.
In her 2006 State of the State address, Gov. Jennifer Granholm famously promised, "In five years, you’re going to be blown away by the strength and diversity of Michigan’s transformed economy."
Yes, we have been blown away.
In 2006, Michigan was tied with North Dakota for the highest outbound migration rate of any state, according to United Van Lines statistics.
The state’s per capita income has been in freefall relative to other states since 2000. It is now an astonishing 7.8 percent below the national average — unprecedented since the Great Depression.
Home values are plummeting as foreclosures soar to their highest level in recent memory.
In 2001, Michigan’s average private sector wage was 9 percent below the average in state government. Today, it’s about 18 percent below. We’re becoming a poor state but with well-off public servants.
According to the Tax Foundation, the state’s overall tax burden will rise to 11th in the country if the recent hikes take effect. Add in the "taxing" effect of our high regulatory burden and a labor climate perceived as unfriendly and you have a toxic brew that’s driving away people and businesses every day.

I find it interesting that people in power right now want more taxes but cannot give a blueprint to keep or generate jobs here in Michigan. Who wants to live here in this state anyway?

In terms of the Fairtax I highly recommend that other conservatives who want more money in their pocket get behind this effort and make some noise on a national level about this.

1 comment:

gillberk said...

People have been resonating with Mike Huckabee because people feel that he is genuine. I strongly feel he is genuine and sticks to his platform.The Republican Party is out of step with the common man and woman in our community. I cannot count on my hand how many times I have heard Duncan Hunter and Mitt Romney BOTH saying that we need to RETURN to the Party of Ronald Reagan.

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