How to save and spend trillions | AspenTimes.com

How to save and spend trillions

Dear Editor:Ted Rall’s recent article, “Death by Consumption” (Aspen Times, March 22) is so misleading I hardly know where to start. There is a bill HR25/S25 called the Fair Tax. In the first false and emotionally charge “lie,” Ted states it is “Fully Regressive.” Our dearly beloved income tax embeds 22 percent in almost every product the poor, or any consumer for that matter, purchases. This is “fully regressive.” Further, the “poor” who “pay no taxes” pay 7.6 percent in payroll taxes plus the embedded taxes. HR25 fully removes both the embedded tax and the payroll tax and, in addition, does not tax used goods i.e. used cars, used houses, garage sales etc. Since the poor consume an inordinate amount of used goods, this is a real benefit. Additionally HR25 rebates monthly, the entire amount of the sales tax to the poverty level. For a family of 4 this would come to a monthly check of $420. After HR25 is passed the poor will pay no taxes, via the rebate, including deceptive hidden taxes and payroll taxes. The poor would therefore realize OVER a 30 percent benefit! This is hardly “regressive.” Removal of the hidden taxes will also benefit American exports by the same 22 percent. The United States no longer will have a predatory tax system so trillions and trillions sequestered offshore will return. Further, the huge $400 billion per year cost to comply with the IRS will virtually disappear. More than 20 million new jobs will be created, via increased economic growth, providing more opportunity for the poor and all to increase living standards. Ted didn’t realize how right he was when he quoted Greenspan’s statement about changing to a consumption tax would promote growth. Estimates are that the first year the country could see 14 percent growth after passage and sustained economic growth 10 percent higher than continuing with the income tax.Ted states in charged language “(the Republicans) sank their fangs into the soft fleshy throat of Social Security.”Other than savaging Social Security, no one, not Republican or Democrat, I’ve heard has presented a credible solution to Social Security, deficits, foreign trade, war funding, tax cuts or other problems that could be solved with more money!There is really only one credible way to solve all these problems. HR25 would grow the economy AND Government revenues by more than 10 percent per year over continuing with the income tax.By 2018, the year that general revenue funds will have to be added to sustain Social Security, the government would collect $8 trillion more than it would have by continuing with the IRS. By 2042 the year of bankruptcy, over $87 trillion would be available without raising taxes one iota. Since the estimate to save Social Security is about $11 trillion by 2042, HR25/S25 will save Social Security and all those other intractable problems all by itself. The choice is clear. Take on the BIG issue of tax reform and the entire country, both Government and individuals, will benefit OR continue with an oppressive, antigrowth, anti-American tax system that will lead us into darkness and oppression.Mike MasonCedaredge


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