No big surprise, yesterday, Virg Bernero announced that he was officially running for governor. Finally we will have a good primary race on the Democratic Party side.
This is the first announcement that actually seems planed. Virg has ads, and a webpage right out of the gate. Sure Hokestra's announcement was more extravagant, but, it wasn't timed correctly. Right now, Bernero is the hot ticket and, with well timed press releases, can remain the hot ticket until August 3rd.
To hear really great coverage of the 2010 election make sure that you tune into "Talking Michigan Politics" last week they interviewed Rick Snyder. Take a listen:
So I haven't posted in a while. I've taken a job as a stagehand for the Maine State Musical Theater in Brunwick, Maine and before that was in the UP for a month. I was a little out of the loop.
You all should know that Bouchard has entered the race and that Land has bowed out. She also has thrown her support behind Bouchard. $3 Million wouldn't have even made it through the primaries.
We also have two other contenders on the Democratic side. First is Alma Smith, the Yippslani State House Rep. The Second is George Perles the
former MSU football Head Coach. I will be doing a profile on Alma Wheeler Smith soon. So far on the surfice all I know is that she has the look.
What of Healthcare? Well, medicine and insurance would have no tax attached to it. All citizens would be required to have emergency insurance. The Fair Tax could easily provide for this. All you need is a health care account for all citizens (perhaps represented by some kind of card) and flat benefit (say $200-$250 per dependent). This would help the lower-class greatly but be of little consequence to the upper-class. You could easily shop around from a bunch of private health care providers or (if your employer covers you) use the money for medication and doctor's visits. Just yesterday, I bought Medical/Dental insurance for $75 a month (and additional dependents were not much more). Such a plan would cover a large percentage of your insurance, but you would still have to save up for other costs.
Health care can even be tied into education. We know that lower-class children are more at risk for health issues and all public schools engage in fitness testing. Why not provide a flat benefit to all students who pass the Presidential Fitness exam (and one to those who are physically unable to compete). True, they would have to be stringently run at central locations; but we could again make fitness a big deal for youth.
This could be just the tip of the iceberg for restructuring under education. Money from the Fair Tax would be used for only two purposes: providing a standardized test to appraise the job school districts are doing and provide flat grants for individual schools. The European countries actually open up schools to total choice and we may consider doing this as well. It creates fabulous competition. I would only add the caveat that the individual transferring has to pay equivalent taxes to a local taxpayer. This is particularly important because municipalities would take over almost all basic taxes and services. Again, the flat grants would benefit poorer school districts which generally lack the means to find outside contributors. Unlike Michigan's MEAP test, the new test would have no bearing on monetary decisions. Rather, it would only provide the public with an idea of where schools are lacking and provide students with an idea of their progress.
Overall, the Fair Tax is not a perfect system. Additionally, I apologize for saying too much and not making this seven individual articles (though that may be a project for the future) However, the Fair Tax is a revolutionary alternative that is absolutely what the State of Michigan and, probably, the US needs right now. The combination of the Fair Tax and the flat benefit principle provide a simple and lethal combination to counteract our current economic and social shortcomings. It is my contention that the system I have outlined here would improve many facets of our society including: Fiscal responsibility, job creation, environmental concerns, health care, education, and more. To paraphrase conservative poster-boy Ronald Reagan, "The solution to our problem are not complex but simple and they are not easy but hard."
The long and short term effects of the Fair Tax also show great promise. I never thought I would borrow Keyensian rhetoric, but we may eat a little inflation at first in order to stop long term destructive spending. In the long term, you would have people prioritizing their purchases and a stronger dollar. Also, businesses would stay in or move to an area where property and income taxes do not apply. Remember, having cultivating property and earning an income are positive economic activities, spending is a quick fix to a problem (I am hungry therefore I will buy food). We should not tax the positive activity.
Additionally, consider the how that might change us from a consumer economy to a producing economy. Gone would be the days of the US being the economic engine that keeps our competitors (India, China, EU) going. We can weaponize this Fair Tax by applying it like a medicine to the pressing issues of our country: Environmental Initiatives, Terror, Health Care, and Education.
Without forcing them, how do you get people to invest in Green products? You simply do not tax them. You would go to the store and see energy efficient light bulbs cheaper than traditional bulbs; it makes for an easy choice. Windmills, rainwater collecting tubs, and solar panels are just a few items that could be discounted. You could even measure the pros and cons of fuel efficient cars. Certainly, the discounting of wind power and alternative fuels would deal a crushing blow to our reliance on Middle East oil. I would even be in favor of the State using the shores of the Great Lakes to harvest wind energy in a taste full and useful manner (they could also serve a light houses for our miles of coast line). They could be self sustaining as area energy providers could rent them from the state to tie into their electric grid.
Given how skewed the Obama tax structure is, we would probably manage to generate more tax revenue despite just using one tax. Wait a minute, would not a predetermined monthly estimate for accrued taxes on a lower class family be tantamount to social engineering? Probably. Is there a crisis of responsible citizenship in this country the likes of which we have never seen? Absolutely yes! How do you solve this? Do not hide behind a complex and governmental system stimulated by loans and aid. Rather, give some responsibility and power back to the everyday citizen by using a simple form a government; one that is still socially sensitive but proscribes to direct aid.
Nader hit the nail on the head when he suggested you could send the Wall Street bail out money to families. If you have little problem with spending an absurd amount of billions, just send half or more back to the American taxpayer. If this needs to be done, make it a flat amount. We will come back to this theme, but I feel a mild obsession with flat benefits because you accomplish the point of a social safety net by giving it to folks who actually need it while making the haves provide for their own advancement.
Another benefit of the Fair Tax and flat benefits would severely disrupt our new favorite practice: over-consumption. You would certainly think about how much you had to buy if the Fair Tax were to be initiated. So would Wall Street investor and sub-prime lenders; not just now but in the future. Yet, it is not just those groups that are to blame. I have met many people who come from lower-class backgrounds in the country. They complain about their circumstance and say they are broke, but they also own ipods, cell phones with internet access, and ridiculously expensive footwear. How much could that run you a year? $1000 to $2500 easy.
What about the upper-middle class parent who complains about the cost of college but gives their child a weekly allowance or credit card for doing nothing? Last week, I spoke to a 14 -year old who lives in a mildly affluent suburb and receives $100 a week all year. That is $5200 to do whatever he wants. Just imagine what kind of car he will get when he turns 16. Even peers who lived in less affluent neighborhoods received between $25-$50 a week. The Fair Tax would not tax positive activities, only defend against reckless spending and provide innumerable tax dollars from those who would continue to engage in such activity. After all, it is fruitless to argue that such recklessness has not led to our current recession.