The FairTax fixes the recession
The FairTax makes America THE "offshore" investment magnet for the world.
Instead of borrowing money from China to pay a "rebate" to American taxpayers, the FairTax makes America THE "offshore" investment magnet for the world. We have lost more than 12 trillion dollars of American capital to offshore locations in recent years. That money, jobs and a whole lot more capital will flow here when we have eliminated the corporate income tax, capital gains taxes and personal income taxes.
And as long as we're counting wasted money, tax preparations, hours spent on returns, tax lawyers and accountants cost our economy $265 billion annually. To that figure add the $350 billion the income tax system comes up short on taxes owed every year. My goodness, that wasted money is coming close to the size of a stimulus package.
Our tax system is damaging the American economy because the tax writing process is not about the economy--or taxpayers. It is all about Members of Congress having the power to reward friends and contributors, punish opponents and inept attempts to manipulate citizen behavior through the tax code. Add to that the profit motive of of thousands of tax lobbyists and you end up with 67,500 pages of tax regulations and a system that rewards debt over wealth, encourages cheating and mistakes, and has enough gimmicks to feed an army of academicians, tax lawyers and lobbyists who study the arcania. For Pete's sake, we've turned the CPA profession into seeing eye dogs leading us through the maze of tax regulations instead of a profession skilled at helping us grow our savings and investments.
Can the American people escape being victimized by the self-interest of Congress and force enactment of the FairTax? The question is really whether the citizenry can still direct the government, as the Founding Fathers envisioned.
In this, the FairTax idea, now widely distorted by those who profit from the income tax system, is more than a better tax system--it is a test of whether our form of Democracy still works hundreds of years after our first tax revolution.