Tuesday, July 03, 2007

Must read for those who support our current Trade and Tax policy

Our current trade policies and our current tax policies are one of the largest problems we face as a nation. Many Americans do not understand this issue at all.

Neither The Democrats nor The Republicans seem to understand this issue at all.

Please read this article:
<http://www.townhall.com/Columnists/PhyllisSchlafly/2007/07/02/fair_trade_for_us_business_the_aim_of_house_bill>

This is one way to view the problems with some of our policies and it is worth a read.

The World Trade Organization always rules against America.

It is way past time for America to wake up and get rid of our outdated, complicated, and ineffective income tax system. We need to put a consumption tax into place. This will help create jobs in America and will level the playing field.

Unfortunately; most Democrats and Republicans in Federal Offices are unwilling to "open their eyes."

We need to ensure we elect a lot of new people to as many offices as possible...

Mike Sylvester

6 comments:

Jeff Pruitt said...

Many of the newly elected Democrats understand the necessity of Fair Trade. The leadership, on the hand, is only slowly warming to the idea. It's only a matter of time in my opinion before this issue explodes in a major way...

Robert Enders said...

America still has a nasty reputation for agricultural subsidies. It hurts our efforts to promote free trade abroad when we don't practice it at home. If we're the last superpower, how come people act like we still have an agrarian-based economy.

Fair trade is a nice idea, but it hurts lower income consumers. A third shift security guard needs coffee more than a first shift IT guy, but does not have the same ability to pay extra to ensure that the beans were grown by a co-op instead of a corporation. If it soothes your conscience, by all means look for the fair trade label. I have to buy whatever I see on sale.

Jeff Pruitt said...

That's not what I mean by Fair Trade Robert...

LP Mike Sylvester said...

Jeff:

I agree that some of the nwely elected Demcorats seem to udnerstand the issue; however, they have done nothing.

They could easily propose legislation that Republicans would support and push it through...

Mike Sylvester

Robert Enders said...

Jeff,
I realize that the term means different things to different people. What do you mean by fair trade then?

Ian said...

On the tax side, we're at a 22% price disadvantage because of embedding income / payroll taxes and compliance that cannot be jettisoned at export. The FairTax plan in Congress solves this, and quite a number of other problems. WITNESS: The FairTax is:

• SIMPLE, easy to understand
• EFFICIENT, inexpensive to comply with and doesn't cause less-than-optimal business decisions for tax minimization purposes
• FAIR, loophole free and everyone pays their share
• LOW TAX RATE, achieved by broad base with no exclusions
• PREDICTABLE, doesn't change, so financial planning is possible
• UNINTRUSIVE, doesn't intrude into our personal affairs or limit our liberty
• VISIBLE, not hidden from the public in tax-inflated prices or otherwise
• PRODUCTIVE, rewards, rather than penalizes, work and productivity

Its benefits are as follows:

FOR INDIVIDUALS:
• No more tax on income - make as much as you wish
• You receive your full paycheck - no more deductions
• You pay the tax when you buy "at retail" - not "used"
• No more double taxation (e.g. like on current Capital Gains)
• Reduction of "pre-FairTaxed" retail prices by 20%-30%
• Adding back 29.9% FairTax maintains current price levels
• FairTax would constitute 23% portion of new prices
• Every household receives a monthly check, or "pre-bate"
• "Prebate" is "advance payback" for monthly consumption to poverty level
• FairTax's "prebate" ensures progressivity, poverty protection
• Finally, citizens are knowledgeable of what their tax IS
• Elimination of "parasitic" Income Tax industry
• NO MORE IRS. NO MORE FILING OF TAX RETURNS by individuals
• Those possessing illicit forms of income will ALSO pay the FairTax
• Households have more disposable income to purchase goods
• Savings is bolstered with reduction of interest rates

FOR BUSINESSES:
• Corporate income and payroll taxes revoked under FairTax
• Business compensated for collecting tax at "cash register"
• No more tax-related lawyers, lobbyists on company payrolls
• No more embedded (hidden) income/payroll taxes in prices
• Reduced costs. Competition - not tax policy - drives prices
• Off-shore "tax haven" headquarters can now return to U.S
• No more "favors" from politicians at expense of taxpayers
• Resources go to R&D and study of competition - not taxes
• Marketplace distortions eliminated for fair competition
• US exports increase their share of foreign markets

FOR THE COUNTRY:
• 7% - 13% economic growth projected in the first year of the FairTax
• Jobs return to the U.S.
• Foreign corporations "set up shop" in the U.S.
• Tax system trends are corrected to "enlarge the pie"
• Larger economic "pie," means thinner tax rate "slices"
• Initial 23% portion of price is pressured downward as "pie"
increases
• No more "closed door" tax deals by politicians and business
• FairTax sets new global standard. Other countries will follow

While many vested interests are motivated to demagog this well-researched plan, those who want to become part of the solution can start with these whitepapers:

http://snipr.com/ftagranch - Agriculture/Ranching

http://snipr.com/ftecon - FairTax and the Economy