OMG they might SAVE!

Okay … to an extent this is old news … It’s a rant that I’ve been meaning to write for several weeks now, but haven’t had the time, energy, or motivation to put fingers to keyboard. I expect, however, that I’ll get around to firing up the old blog for a few entries over the next couple of weeks.

At this point April 15th has come and gone. Americans across the country have spent a horrendous amount of combined man-hours and money laboring under an archaic tax system that needs revision. Many of you that know me already know that I support a new tax law proposed by Congressman John Linder (R-GA) commonly known at the Fair Tax Plan (Details can be found at http://www.fairtax.org/ including a rebuttal section that explores some of the more common arguments against the plan) which would make April 15th ‘just another day’ by doing away with income tax and replacing it with a consumption tax (thus taxing DISPOSABLE income as opposed to all income).

I almost regret that both my US Senators and my Congressman already support this legislation as it means that I can’t call/mail/etc them to urge them to support the proposal. (I do email them to thank them for supporting it though.) The Fair Tax movement has grown substantially over the last couple of years and with the coverage that it gained over the last election period it gained the ear of President Bush … it also gained it’s first ‘organized’ opposition.

Now there has, of course, been opposition to the Fair Tax plan before this, but it was individuals or small groups of people that were largely unfamiliar with the bill and made blanket statements such as ‘it will just be an additional tax on the poor!’ (Since it repeals the current income tax completely it can hardly be considered an ‘additional tax’ … second off the poor, along with everyone else, would get their ENTIRE paycheck (no withholding payroll taxes) AND they would get a check for the amount that they would be expected to pay in tax for the ‘essentials’ (food, clothing, shelter) so that in essence they would pay zero tax.)

Now, however, a major organization has stepped forward and made a stance against the Fair Tax plan. The National Retail Federation is opposed to the fair tax and has apparently urged their member organizations (mostly major retail stores such as Home Depot and others) to oppose the legislation.

But why is it that this particular special interest group has stepped forward to combat this Tax Legislation? Because they’re afraid that people, once given their entire paycheck, might choose to save some of their money. OMG the HORROR! Americans, in particular the poor and middle class, might actually SAVE their own money for retirement or *gasp* for a rainy day.

What it boils down to is that the National Retail Federation wants every American to spend 100% of their Net income … or even better spend 150%. Don’t save any of it! SPEND SPEND SPEND! Never mind that part of the problem with the economy is a low savings rate … never mind that people in this country could live better longer with a little more money in their pockets … never mind that it might mean that there are less bankruptcy cases as people have more net income due to the removal of federal withholding taxes.

This same organization supports and fights for the Bush tax cuts, and states that the tax cuts are directly responsible for increased spending and economic growth because the cuts put more money in the hands of the American people to spend. Never mind that with the Fair Tax plan I (and most Americans) would receive most of the 28% or more that is withheld from their paychecks … never mind the myriad of economic studies that show that the Fair Tax would result in enormous economic growth for this country. Never mind any of that … people might SAVE!

Do you remember the first real paycheck you got? If you’re like most Americans, when you looked at that paycheck stub your jaw dropped as you realized how much was being withheld for tax purposes. I want you to relive that … look at those withholdings every time you get a paycheck and realize that there is an alternative. You and every American could be receiving all of those federal withholdings (Federal, Social Security, Medicare) yourself AND receiving a check from the federal government in compensation for your estimated tax on essential items.

I urge you ALL to become informed about the Fair Tax proposal, and if you support it, to lend your voice to the cause. Individually there’s not much we can do …. Together, there is nothing that we can’t.