"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it."
A must-read blog every day in preparation for the show is Cato@Liberty. There you will find information like this ... KPMG released its latest global survey of corporate tax systems. Sounds like a real snoozer, right? Well that's why you have me. I'm the guy who wrote a New York Times best seller about taxes.
So back to this survey ... for the 10th year in a row, the average corporate tax rate world-wide has fallen. Now it rests at 25.5%. But that's the average. This means that some countries have a corporate tax rate higher than 25.5% and some less. So ... where is the United States? Well, we're stuck. Stuck at 40% .. where we've been for quite some time. Only one country has a higher corporate tax rate than the United States; Japan.
In case you haven't noticed .. .the world is shrinking. Businesses and businessmen find it easier to move around the world in search of advantageous business climates. In a world of instant communications; in a world where no business hot spot is more than one day's travel from another ... why would a company continue to subject itself to a confiscatory tax rate when it can simply move?
This, of course, brings me to the FairTax. Right now we have the second-highest corporate tax structure in the world. But what would happen if we had the lowest? In fact, what might happen if businesses could operate in the United States without any tax component on capital or labor? What if corporate leaders never had to consider the tax implications of any decision? What if business decisions could be made on the basis of what is good for the company, the stockholders, the employees and the customers, rather than on how to minimize tax consequences. This would be life under the FairTax.
Right now you can bet that business owners are contemplating ways to escape the coming increases in tax rates in the United States. The response will be to move more jobs and more business out of the country. Sure, The Community Organizer will try to find a way to erect some sort of an economic Berlin Wall to keep American wealth from fleeing tax tyranny, but it will only be partially effective. Why not try to attract wealth, rather than looking for ways to chase wealth away?
Well, you know the answer; don't you? To attract wealth the political class must transfer power to the private sector. That isn't going to happen; not with the looters in charge. The game here is power, not the economic welfare of the American people. The FairTax would be the greatest transfer of power from government to the people in the history of our Republic. You don't' see very many people with a "D" after their names who like that idea.
In cased you missed it, we'll be running the FairTax 101 special 9-10am ET. Then in the information overload hour, Neal will answer FairTax questions that you emailed us. Consider this your FairTax discussion thread.
What, you missed it AGAIN? Okay, here's a link to the audio. Oh yeah, and it was already sitting on the audio archives page. Check there every once in a while. You never know what we'll stick on there.
Here's an idea. Read this and then see if you can figure out why our politicians wouldn't go for this in a heartbeat!
Because of America's punishing tax system there is a lot of money that is owned by Americans but invested overseas. How much? Well, before the economic downturn some people estimated that figure at around $13 trillion. That's with a "T" folks. How much of a hit has it taken? Well, let's cut it back by about 30% and say that the figure now stands at $11 trillion.
It would be grand, wouldn't it, if that money came back home to America to go to work in our economy? So ... why doesn't that happen? Taxes, that's why. That money is overseas doing well, thank you very much, earning money outside of our confiscatory tax system. If a corporation or individual tries to bring some of that money back home our federal government jumps on it like Clinton on a bimbo.
Now .. what if that money could come back home to work in our economy without being taxed? Under the FairTax, of course, that would be the case. Not only would that money come back to work here, but it could be put to work creating jobs and growing wealth without any tax component being added. But we don't have the FairTax right now, so how can we get this done?
AMNESTY!
There you go! Declare a tax amnesty for all American-owned dollar-denominated deposits overseas! Welcome that money back home without any taxes, any interest or any penalties. Just ask the money to come home and work here! Would every dollar come home? Certainly not! But let's just go for about one-half about $5.5 trillion! Do you have any idea what this could do for our economy? That's the equivalent of about seven Obama stimulus plans. What's more, this money wouldn't be spent by politicians trying to insure their reelection. The cash would belong to and would be spent by the private sector! You can be sure that unless someone saw an investment opportunity - a possibility of a financial return - the money would not be spent on puppet theatres or giant inflatable alligators (seriously). Over $5 trillion dollars infused into our economy could be quite a jolt, especially in the private sector.
OK ... is there anything wrong with this amnesty idea? Sure there is! I've already outlined it. The money would be spent by the private sector, not the government. We have an administration based on the premise that America's greatness comes from government, not freedom. In the minds of these politicians the way to make America greater is to move as much money from the private sector to the government as possible, and then have the government spend it. That, by the way, is exactly what Obama is trying to do with the overseas funds. Tax them. Send the IRS out there looking for these corporations and people. Bludgeon the Swiss into releasing account information. Increase penalties. Beat this money into submission and then seize as much of it as you can.
The Obama administration is desperately searching for ways to take more money away from you and use it to fund its dreams and schemes. After all, the painful truth that most people forget is that the government does not earn any money. Basically, there is only one way for the government to get money to spend, and that is to seize it from the private individuals who worked for and earned it. Since government is force, this isn't hard. You have producers and looters. Not hard to figure out which is which, is it?
When you think about it, one big difference between Republicans and Democrats is the manner in which they choose to loot, and the subtlety with which they operate. With all of the spending The Chosen one has generated, you just know that they're burning some midnight oil trying to figure out new methods of plunder. One particularly onus tax is gaining much favor ... the value-added or VAT tax. In fact, John Podesta says that some form of a VAT tax is "more plausible today that it ever has been."
Podesta says that a consumption tax would "create a balance" with other economies and could substantially effect competitiveness. Now, Podesta says that a VAT tax would be regressive but can be "balanced" by exempting certain products and "[supporting] low-wage workers." By "supporting" low-wage workers Podesta, of course, means more income transfer and welfare programs.
Let's wade through some of the rhetorical bull squeeze here, shall we?
Podesta calls the VAT a "consumption tax." When you really think about it, ALL taxes on business are consumption taxes. That would be business tax burdens are passed down to the ultimate consumer of the product or service taxed. Right now businesses and corporations pay federal income taxes, one-half of the Social Security taxes, unemployment taxes, worker's compensation taxes and a bunch more. These taxes are built into the price of whatever that corporation or business sells to its customers. Eventually all of these taxes are paid by the final consumer. All that Podesta (and Obama) are proposing is the addition of one more tax --- one more tax to roll down hill and nail the consumer at the end of the chain of production.
If this idea gains traction in Washington will you be ready? Will you be ready to duplicate the 9/12 DC tea party with a FairTax march on Washington. You know, and these political hacks know that there is a better plan out there. A TRUE consumption tax. Let every product and service reach the ultimate consumer carrying absolutely no tax component at all ... then charge an honest and open inclusive sales tax as the product goes from the marketplace to the final consumer.
It is beyond outrageous that Obama's dog washers would be considering this atrocity when a fully researched and vetted idea like the FairTax is out there. But we all know why the political class will fight the FairTax, don't we? The VAT would ADD to the power of the political class. When they get to sit up there and decide what will be taxed, and what will not be taxed; and to set the rates for those taxes ... now that's what power is all about. The FairTax, on the other hand, transfers that power to the people. The payment of taxes would be voluntary. You could chose to live at the sustenance level and pay no taxes at all to the federal government. You only pay taxes when you make the voluntary decision to expand your spending past that required to provide the basic necessities to your family. You're in control. Complete control And that's what makes the FairTax so frightening to the political class.
Watch this VAT nonsense, my friends. It is something that will not only take dollars out of your pocket; it is a tax you will truly come to hate. Just another wonderful change you can believe in.
Oh how I would like to see a march on Washington of that magnitude promoting the FairTax. Now with the looters in charge in Washington right now that could well be an exercise in futility. But if the Republicans get on the ball and make the FairTax a part of their 2010 platform (another Contract with America?), do you folks think we could gin up a crowd like this?
Hey, did you miss the Special Boortz Hour "Back to School: The FairTax 101?" We're making the whole thing available to Boortz Blast email newsletter subscribers. Sign up here. It's free.
Well, this seems to be as good a time as any to remind you that TODAY on the show we are going to dedicate one complete hour to the FairTax. During that hour I'll cover the following:
A brief history of taxation, including how politicians used wealth envy to sell the people on the income tax.
Who developed the FairTax idea, and why
How the FairTax works, and how it makes payment of federal taxes essentially voluntary.
How the poor are completely protected from paying any taxes at all to the federal government under the FairTax
The role the FairTax could be playing today in bring our economy back to health.
The current status of the FairTax in the Congress.
Answer questions from listeners and respond to the most common objections.
We'll have this hour for you at 11:00 am Eastern time with an encore at 3pm ET on our flagship station, News/Talk 750 WSB. Figure it out for where you happen to live.
Also, if you missed it, we're going to put the audio for this in next week's newsletter. If you are not yet a subscriber, you can sign up here.
Just a few months ago someone published a book slamming the FairTax. I checked Amazon.com today and that book is currently No. 193,091 in book sales. The FairTax Book was published what ... five years ago? It is number 9,961. Oh yeah ... I would like to see it doing better, but at least we're damned near number 200,000.
By the way ... I was thinking of doing an entire hour sometime next week, during the congressional recess, re-explaining and discussing the FairTax. Any comments?
The folks over at fairtax.org have another way you can advance the cause of the FairTax. Download the FairTax toolbar and it will provide financial assistance to the FairTax cause, at no cost to you! Find out more here.
A recent Gallup polls shows that 40% of Americans describe themselves as conservative. Only 21% of Americans call themselves liberal and 35% consider themselves moderate.
Clearly all of these conservatives don't consider themselves to be Republicans. Many of them are round in the ranks of or in sympathy with the Libertarians. A lot of them even vote Democrat. Conservative doesn't always equate to Republican. There are a lot of conservatives, for instance, who do not feel that it is the government's role to control a woman's reproductive life. Many of them won't vote Republican until the party starts to concentrate more on governance than it does on people's personal lives.
Fact is, the Republican party is out of fresh and new ideas, and it is ignoring the good old ones. Where are the Republicans who are standing up with anything more than a whimper for free enterprise?
OK .. you know where I'm going. I'm completely convinced that if the Republican party would put its full support behind the FairTax, and pledge to pass it as soon as they have control of the House and the Senate, it would turn next year's midterm election on its ear. The FairTax would become the issue. Sure, the Democrats would demagogue it, but as more and more Americans learned the truth their demagoguery would serve to hurt their cause, not help it. The formula here is so simple. Would you rather pay the government 33% of everything you earn, or 23% of everything you spend. What do you think of the idea of nobody paying any taxes at all to the federal government until they have provided for the basic necessities for their family? Now think about that one. Should the government have a claim on one single penny of the money you earn --- or, to state it differently --- should the government have any claim on one single minute of your life before you've taken care of your own family's basic needs? Unless I miss my guess, most Americans would answer "no" to those questions. Can't you see the Republicans running on a campaign of "Not one penny for the government until your family is taken care of." Well, that's the FairTax.
Why won't the Republicans get behind this? The FairTax is the most thoroughly studied and researched piece of legislation ever to have been placed before the Congress of the United States. Still, the Republicans don't believe that they can stand up to Democrat demagoguery. They have no confidence in the voters. They think that the voters will respond to simplistic and sophomoric ideas like calling the Democrat Party the "Socialist Democrat Party." Yeah ... that's showing 'em. But when it comes to supporting and promoting legislation that would bring about the largest transfer of power from the government to the people in our history .... The Republicans shy away.
There are trillions of dollars ... perhaps as much as $13 trillion ... in American dollar-denominated deposits working in overseas economies. Those dollars belong to Americans and American corporations. Stimulus? You want stimulus? What if that money came flowing back home to work in our economy? Can you imagine the stimulus to our economy that would result from just one-half of this money coming back home? This money would be spent by the people who earned it and own it, not by the government. The spending decisions would be privately made, not made in Washington's dark chambers. Obama's idea? Pass laws that tax these overseas earnings right here at home. Construct an economic Berlin Wall. If you see a dollar trying to escape our tax system, shoot it down without remorse. The FairTax plan? The FairTax play that could be the Republican plan? Tell the people who hold this wealth to bring it home with absolutely no federal tax consequences whatsoever. No taxes, no interest on taxes, no penalties .. nothing. Bring it home and put it to work in America and for Americans. But ... have you heard one single Republican present these different approaches to the American people?
How can the Democrats frighten the Republicans so much on this plan? The Democrats would argue for withholding money from your paycheck before you even see it. The Republicans could argue for presenting you with 100% of your paycheck every payday. The Democrats could argue for taxing everything that moves. The Republicans could argue for businesses operating in the US with no tax component on capital or labor. The Republicans aren't willing to take on this argument?
How sad it must be to have the hearts and minds of the plurality of the American people, but be unable to translate that into actual support. How on Earth do we have Barack Obama, Nancy Pelosi and Harry Reid running the show? Again, I said there were two reasons. The first being that the Republican Party has nothing going for itself. The second is because the American people have been conned ... at least in the presidential election ... into voting for a man who promised them "hope" and "change."
Elections have consequences. Are you starting to figure that out yet?
Neal Boortz show friend Steve Penley has developed a beautiful poster for the Midwest Fairtax Rally in Columbia, Missouri June 13th. Come on out and meet the Talkmaster and support the FairTax. What a deal!
We need to kiss and make up. Really, we do. As I understand it Dave said on his show yesterday that he got it a bit wrong when he wrote about the FairTax on Townhall.com. Now I'm trying to get him on the air so we can swap some spit. No problem, Dave! All's well.
... and this time it's none other than Dave Ramsey.
The FairTax is a bold proposal. It is only natural that people are going to try to criticize it. Is it too much to ask for these people to do at least a modicum of research so that they at least appear to know what they're talking about?
This time the culprit is Dave Ramsey. I like the guy, and I like his approach. His sermons on living debt free are right on, and no doubt he's helped millions of people to improve their financial. OK .. mighty fine. But now he's taken it upon himself to opine that the FairTax simply isn't, in his words, "fair."
Let's take this quote from Ramsey's article: "People would only pay taxes on items they buy, except for food, basic clothing and other kinds of necessities." Most of the FairTax supporters know that this is just flat-out wrong. The explanation is incomplete. If Ramsey really was informed on the FairTax he would know that you pay taxes only on items that you buy at the retail level, and that food, basic clothing and other kinds of necessities are included. Ramsey would also know about the prebate. He would know that every household in this country --- that is, every legal household --- would get a credit or check from the Treasury Department every single month equal to the FairTax they would be expected to pay on the basic necessities of life during the following month. This FairTax prebate is so essential to the FairTax plan that to ignore it, or to be unaware of it entirely, is worse than careless.
Ramsey also writes of the FairTax "This means it's more of a burden on poor people, because they would pay a higher percentage of their overall income." Sorry, wrong. The poor, poor pitiful poor would pay virtually nothing - zero percent of their income - to the federal government. [ALERT! Brilliant thought follows!] To pay any taxes at all to the feds the poor would have to spend above the poverty level. If they're doing that ... they're not poor. Pretty easy, isn't it? I wonder why Dave Ramsey doesn't get it? Is there a chance he just shot from the hip here without doing any real research? The FairTax deserves better than this flippant, uninformed treatment.
Dave Ramsey could be a good proponent of the FairTax. He's very bright, and he would recognize the beauty of this plan if he just would take the time to actually study it. Knowing what you're talking about .... Is that too much to ask?
Weird, this audio clip on YouTube seems to show Ramsey supporting the FairTax. Huh. Maybe he's lost changed his mind since that was recorded.
The Republicans are starting a new outreach initiative. Basically, they know that their party is hopelessly screwed. They can't save themselves; they can only hope that the Democrats screw up enough to make the Republicans not look as bad.
But they are making an effort, nonetheless. Will it work? Well, this National Council for a New America launched an open letter to the American people. What is interesting about the letter is what was left out: illegal immigration, same sex marriage, abortion .... all of these issues that have the Republican Party completely handcuffed.
Now I have a strong personal interest here ... but I truly believe that if the Republican Party would work to understand and then promote the FairTax the American people would respond very positively. They could have the Democrats on the run. Am I dreaming here? Your thoughts?
The left most certainly didn't like the spectacle of the tea parties and FairTax rallies on tax day. Liberals would much prefer that you just file your tax return and shut the hell up. After all .. this protesting government thing is something that rightwing extremists do, right? I think that we all knew that the left would try to find ways to denigrate the protests ... and here you go.
Princess Nancy has come forward with her own theory as to how these rightwing extremists came to be protesting our government spending habits and our tax code. You'll love this. Nancy Pelosi actually believes that these tea parties are supported by ... ready for the class-warfare card? ... "the high-end." That's just another way of saying the evil, filthy, disgusting rich. Here's her quote:
"This initiative is funded by the high-end. We call it 'astroturf'; it's not really a grassroots movement. It's astroturfed by some of the wealthiest people in America to keep the focus on tax cuts for the rich instead of for the great middle class."
So there you have it, folks. Rich people were behind this. They're somehow using the masses to protest taxes so that the evil rich won't have to pay their "fair share" of taxes. Why is it only the "great" middle class that is deserving of a tax cut? Is Princess Nancy implying that the evil rich don't actually work to earn any of that money? Hmmmm. You know, of course, that she actually does believe that. Oh .. by the way, Nancy and her husband are worth in the tens of millions.
Why the "Astroturf" word? Well ... and let's see if we can follow this: The tea party movement is not true grassroots. It's fake. Fake because it's promoted and financed by some rich people .. and Fox News, of course. Fake grass = Astroturf. Get it? Unusually clever for liberals, I'd say.
Oh and by the way, guess who happens to be known as the master of "astroturfing" in Washington? Obama's chief strategist David Axelrod. Basically what it happens is a corporation or political party creates the impression of something being caused by spontaneous "grassroots" behavior .. when in fact it is very much manufactured.
So this is what Nancy Pelosi believes the tea party movement to be all about. And therefore, your anger and your frustration is not worthy of her time because it is coming from an artificial source.
I don't think there was anything false or manufactured about what happened on April 15th. Do you? But that's how the Democrats are going to get around this ... by pretending that your actions aren't fueled by genuine concern for your children's future.
Wouldn't you like to see Pelosi just reduced to another one of the 435 members of the House of Representatives? What a day that would be ... and that day only comes around when the actual productive people get off their duffs and actually vote when the next election comes around.
Much thanks to the people of Columbia, South Carolina for their wonderful reception last night at our FairTax rally. Many were WIS listeners and it was great to see them in person. Governor Huckabee and I talked last night about the enthusiasm of the crowd. Here are some pictures.
Barack Obama says that he wants to pare down the "monstrous" tax code to make it simpler for Americans to pursue the American dream. Hey, President Obama ... I've got a really ingenious, simple idea. Maybe you have heard of it? It's called the FairTax. No filing federal or state income taxes. No more IRS bureaucracy and thousands of pages of tax codes under which to comply.
What do you think my chances are of getting that one in front of the president for consideration? More likely than my chances with Angelina Jolie?
The day is here. Tax day. For me, this day brings the excitement of a FairTax rally in Columbia, SC. For others, it will be literally hundreds of tea parties where you can bond in the disgrace of our gross government tax and spend policies. For others, it will simply bring frustration because they had to spend time filling out tax paperwork rather than watching American Idol.
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A must-read blog every day in preparation for the show is 
If this idea gains traction in Washington will you be ready? Will you be ready to duplicate the 9/12 DC tea party with a FairTax march on Washington. You know, and these political hacks know that there is a better plan out there. A TRUE consumption tax. Let every product and service reach the ultimate consumer carrying absolutely no tax component at all ... then charge an honest and open inclusive sales tax as the product goes from the marketplace to the final consumer.
Well, this seems to be as good a time as any to remind you that TODAY on the show we are going to dedicate one complete hour to the FairTax. During that hour I'll cover the following:
Just a few months ago someone published a book slamming the FairTax. I checked Amazon.com today and that book is currently No. 193,091 in book sales. 
... and this time it's none other than Dave Ramsey.
The Republicans are 
The left most certainly didn't like the spectacle of the tea parties and FairTax rallies on tax day. Liberals would much prefer that you just file your tax return and shut the hell up. After all .. this protesting government thing is something that rightwing extremists do, right? I think that we all knew that the left would try to find ways to denigrate the protests ... and here you go. 
Much thanks to the people of Columbia, South Carolina for their wonderful reception last night at our 