Fair Tax: Part II

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.