Wednesday, November 02, 2005

Demint's alternative tax proposal

Dear FairTaxers,

It's me again, with another rant.

This article about Senator DeMint's introduction of an alternative tax system says a lot.

It tells me that perhaps the money brokers have heard our cry, and are offering something that they think is middle ground. But I can see right off the bat that this proposal is totally flawed from the FairTax perspective.

First of all, I am highly suspect of it because it was apparently conceived and introduced in the "House of Lords" (The Senate). This means that it is most likely the collaborative product of business and government. Notice how there is a provision to hide part of the government's tax base in the cost of goods and services. This does not coincide with our goal of total transparency.

The worst part of it is that there would be two different taxes instead of just one. A friend of mine, who is an accountant, says that there is an unwritten rule of government that pronounces something to the effect that "tax schemes tend to multiply rather than shrink in number". This seems to be an indicator of that concept.

As long as taxes are hidden in the cost of business, there will always be the temptation of those with wealth and power to use their influence on government to tweak the tax rules in order to gain an advantage.

The prospect of starting a small business in America has become as intimidating as a hike up Mount Everest with all the regulations that one must abide by, let alone the tax compliance. And I'm not pointing the finger just at the Federal Government, although they are the main culprits, having hamstrung the States and local governments with their coercive distribution of Federal Funds; our tax monies.

We have seen, over the past century, the near extinction of family owned farms, slowly being replaced by the corporation. I dare say that the existence of the family owned business will go the same way, and we will all become employees of a corporation in the latter part of this century, if the tax advantage is not taken away from the corporate moguls. The States will soon follow, all dissolving into the "United Corporations of America".

We are not living in the America that I learned about as a child. Follow the money, and you will find out where the real power is in this country. America is no longer a concept of the people, by the people and for the people. The corporations, in their partnership with the government, have muscled their way into this position at the expense of our opportunity and freedom. And we, the people, have literally paid their way via taxes.

You can't blame the corporations for this, after all, its just business to them. But to us, the people, it's our lives and the lives of our children.

And this, my friends, is why the passage of HR25 is so critical to our future.

Best Regards

Robert Nathan

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