Johnson: Let's get America moving again
The Washington Times
...First, we need to get rid of the income tax. When our first great Supreme Court justice, John Marshall, equated the power to tax and the power to destroy, he was predicting what’s happening to our country right now. Giant, slow corporations spend their money on lobbying because tax avoidance is where their profit is. General Electric earned $14.2 billion in 2010 and paid zero taxes on it. Why? Because it has the lobbyists to get subsidies and tax breaks.
But those mom-and-pop stores? The tech startups? The nimble new corporations with new ideas and new visions for our economy? They pay as much as 35 cents on every dollar they earn. When the company pays its employees, the government taxes that money again. We need to stop taxing work, savings and investment. I advocate removing all income taxes, all capital-gains taxes, and replacing them with a consumption tax, kind of a national sales tax called the Fair-tax.
We also need to get rid of payroll taxes. Look at it from the perspective of employers for a moment. When they want to hire someone, it costs more than just the wage they’re paying. They have to pay payroll taxes, including for Social Security and Medicare. That cost is about 10 percent of the wages they pay an employee. Remove that burden, and employers will be able to hire 10 percent more people. With an unemployment rate of 10 percent, why wouldn’t we jump at this chance? The Fair-tax replaces employment and payroll taxes.
So how does Fair-tax fund the government? When anyone purchases a new good or service for personal consumption, be it a DVD or a yacht, the person is taxed. Fair-tax doesn’t tax used goods or business-to-business purchases.
Some think the Fair-tax is regressive, but in fact it’s progressive - taxing the wealthy more than the poor. Fair-tax issues a “prebate” for families to spend on food, clothing, transportation, medical care or whatever they want to spend it on - it’s their money. Undocumented immigrants will pay their taxes if they want to buy anything. They need a Social Security card to receive a prebate, so the incentive is for immigrants to get themselves on the books as fast as possible...
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