A FAIRTAX NOTE

It would truly be refreshing if we could all discuss the FairTax based on the actual bill that has been introduced [H.R. 25] by Congressman John Linder. Instead, FairTax proponents spend so much valuable time chasing down rumors and inaccuracies created by opponents. Since late last week, for instance, FairTax officials have had to respond to the charge leveled by Wall Street Journal columnist Bruce Bartlett that the FairTax movement was begun by the Church of Scientology .. a provable untruth.

One of the most pervasive distortions about the FairTax is that is the idea that when you go out to buy something you'll have to "add 30 percent" to the price of whatever you purchase. This particular FairTax attack contains two false statements: (1) that the FairTax rate is 30 percent, not 23 percent; and, (2) when you buy something – a house for instance – the FairTax will be added to the purchase price. The truth, of course, is that the FairTax will be included in the purchase price – a part of the price that is quoted you. That's why it's referred to as an "inclusive" sales tax.

The way you most often hear this particular FairTax distortion presented is with the statement that "when you go buy a $100,000 home you will have to pay the added $30,000 FairTax. That means the $100,000 home will actually cost you $130,000."

For the sake of our argument here, I'm now going to try to once again point out that under the FairTax the embedded taxes that would be in that home today are removed, and those embedded taxes are replaced by the embedded FairTax.

Let's turn the tables on the opponents. Now remember ... this is just for the sake of argument ... but let's assume that their false position is actually true. We'll go ahead and stipulate – just to make this point – that under the FairTax you'll have to add $30,000 to the cost of a $100,000 home, bringing the total up to $130,000.

Now ... since there is no income tax under the FairTax, and since you get 100% of your paycheck, just how much do you have to earn to buy that house under this scenario? Answer: $130,000. That's $100,000 for the house and $30,000 for the tax.

But ... and this is a big "but" ... what do you have to earn to buy that same $100,000 house under our present income tax system?

The average American household pays about 33 percent of their income to the federal government in income taxes. So how much do you have to earn in order to have that $100,000 free and clear to buy that house? Well, if you earn just $100,000 you're going to have to pay about $33,000 to the government. That leaves you with $77,000. Not enough. The fact is you will have to earn $150,000 to buy that $100,000 house under our present income tax. You earn the $150,000; your tax rate is 33 percent, that takes $50,000 away from you; and you have the $100,000 you need to pay for the home.

So --- even using the FairTax opponents false claim that the tax is added TO the price of an item, in this case a home, instead of included IN that price (replacing the embedded taxes that are already there), you see that there's still an advantage to the FairTax! You don't have to be much of an economist at all to understand that it is better to have to earn $130,000 to pay for a $100,000 home than it is to have to earn $150,000.

BOORTZ BOMBS ON C-SPAN

Well .. that's according to the C-Span producer who arranged the whole thing. Belinda had a conversation with Rich (last name unknown) yesterday and asked him how things went with the broadcast. "Not good," replied Rich. "We were very disappointed." It seems that I didn't do enough to entertain the C-Span audience during the breaks, and we didn't have enough guests and phone calls.

Oh well ... looks like my TV career was short-lived. We don't expect to see C-Span in these parts again.

By the way ... looking at the C-Span ratings for Atlanta, there was only one time out of the last three days where C-Span even so much as showed up on the overnight Neilson ratings. Yup ... you got it. Right up there to a 4-share!

ARE YOU ONE OF AMERICA'S MILLIONS OF TEMPORARY WORKERS?

Most people with full time jobs don't really understand the reach of staffing and temporary agencies in our jobs market. Employers are tired of dealing with government interference in their hiring and firing activities, so they turn to staffing agencies. The result is that across our country millions of people go to work for a company that has contracted with a staffing agency or temporary employment agency for your labor.

I know people who are in this business, and they tell me stories of how dismayed their workers are when they see what happens to their paychecks. They're told when they go to a new assignment that they're going to be earning $15 – 20 – 25 bucks an hour. They put in 40 hours, and then are shocked when their staffing agency presents them with the check. "Where's my twenty bucks an hour?"

Well, under the FairTax this all changes. When you're told that you're going to work an assignment for two weeks that is going to pay you $25 an hour for two 40-hour weeks, you know that at the end of your assignment you're going to get a check for $2000. No deductions.

Does that sound like a bad deal to you?

On top of that, you'll get your monthly prebate from the federal government. Depending on the size of your household, that could be from $100 and change to over $500.

The FairTax really blows, doesn't it?

THOMPSON'S 'ANNOUNCEMENT'

How do you feel about Senator Thompson running for President? Run, Fred, run! Eh, who cares. I'm saving myself for Newt.

Yes, I've heard about it. Fred Thompson confirmed that he will, indeed, be entering the Presidential race. Although he won't officially announce until next week, aides confirmed that he will be running for president.

Look for tours in Iowa, New Hampshire and South Carolina real soon.

The question is whether or not he has the courage and foresight to run on the FairTax.

THE RIGHT TO VOTE

Bill Nelson is a Democratic Senator from Florida. He wrote an opinion article in USAToday about the right of Florida Democrats to vote in the primary. As you may remember, the party stripped the Florida Democrats of their votes after the state moved its primary to a date before February 5th.

Understandably, Bill Nelson is upset. Here are a few points of what he had to say.

"Four decades ago, our nation belatedly enacted a law to guarantee every U.S. citizen an equal right to vote ... It was said then there is no reason that can excuse the denial of this right ... It was true yesterday. It's true today. It will be true tomorrow."

"The issue before us is simple: It's a case of fundamental rights vs. party rules."

"We are immersed today in seemingly greater debates: Iraq, health care, home foreclosures. But rarely does an issue arise that is so sacred to our democracy.

As to our right to vote, and have that vote count, there can be no debate."

Sorry, Senator Nelson, nice try; but you're wrong. There is no right to vote in a federal election under our Constitution. The Voting Rights Act, to which you are referring, merely sets forth criteria that cannot be used to deny a vote to certain people if and when the state decides that a vote is going to be held.

Call me on the air. I'll be glad to explain it all to you.

CHEMICALS? IRAQ? UN?

In the UN building in New York City, officials found a dangerous chemical agent. This chemical is a warfare agent. A chemical agent that causes choking. It came from Iraq.

A decade ago these chemicals were round in Iraq and removed. They ended up at the UN building right here in the U.S.

My question is this: How could these deadly chemical agents from Iraq have ever ended up here in the United States when we all know that Iraq didn't have weapons of mass destruction?

GOVERNMENT SCHOOL PRANK

One crafty government educated student decided to pull a prank at the Davidson High School's football game in Columbus, Ohio. He arranged colored pieces of paper on the opposing team's side of the bleachers. When the signs were held up, they ended up spelling "We Suck."

Now the guy gets three days of suspension and is banned from all sporting events for the rest of the semester. Needless to say, he was not expecting this harsh a punishment from a silly prank.

Actually .. I think it was kind of clever! Kudos to the prankster!

THE FUTURE OF NEWSPAPERS

Yesterday you heard me talk about the disappointing newspaper we have here in Atlanta, the Atlanta Journal Constitution.

Now I find a story that might actually give us a little insight into why newspapers are suffering! Parents of government school children in Naples, Florida are upset. They are upset because their children are being graded in their journalism classes based on how many ads they sell. Not on their reporting skills. Not on their grammar. Not on their interview skills or being able to put together a coherent sentence. No. It is all based on sales.

The publisher of the Carolina Journal, Jon Ham, says that the Collier County School District has it right. He says that journalists should be concerned about the business aspects of the papers they work for, rather than just "doing God's work." He adds, "Not that many of us [journalists] actually believe in God, you understand, but you know what we mean, right?"

He says that journalists reporting with the bottom-lines in mind will definitely help the future of the industry. He adds that these kids will get into a newsroom and have a better idea of how to "make their product appealing to the consumer instead of holding the reader in contempt."

Yeah ... let's make the stories appealing to the reader, we'll worry about accuracy and thoroughness later.

Bill N. sends us this with the insensitive observation: how'd he get up there?

REDNECK SCRAP BOOK

I don't know, this is clearly missing a cup holder and an ashtray. Of course, this isn't the first redneck potty humor we've featured. More in the Redneck Scrap Book.

READING ASSIGNMENTS

A new survey shows that less than half of all scientists who publish materials endorse manmade global warming theories.

Ok you warmers. Are you ready? Climate change is now the cause ... of more cougar attacks.

One of the Taliban's top commanders was killed yesterday. Perhaps the principal of McNair High would like to have a moment of silence.

Bonnie Alba (no relation) writes of "The FairTax – distortions and lies." It seems that Ms. Alba also recognizes the distortions contained in Bruce Bartlett's recent column. A correction from Bartlett? Not as of yet!

Uh oh. Call the diversity police. Some students chanted "white power" during a discussion about immigration (make that illegal immigration) at a school in Colorado. What's wrong with you people? Don't you know that "black power" and "Latino power" chants are perfectly OK? But that's as far as it goes?

The teenage with TB here in Atlanta ... he's being deported back to Mexico. Am I the only one wondering how many illegal criminal aliens we have here as a result of the Mexican invasion who have TB?

Here's some controversial artwork depicted Osama bin Laden as Jesus Christ. Where are the Christian riots? Where are the protests or violence?

When government schools are failing, just give them more money. That's what they are doing in Arkansas. $13.2 million, to be exact. Let us know how that works out for you!

Here's an in-depth look at how illegal immigrants have impacted the state of New Jersey. Needless to say, it costs the taxpayers a lot of money.

The teachers unions are hard at work ... denying your children to their government education by refusing to teach. If I refused to go on the air, I would be fired. Simple as that. But not when you are protected by the unions and government.

This is for all you smokers. Smoking stays in your genes even after you quit. So now you can blame your habit on your genes.

Do you think Lauren Caitlin Upton could have handled this one? In the Mrs. America pageant, Mrs. Tennessee was bitten by a rattlesnake and then saved by Mrs. Idaho!

A new study shows that more women commit domestic violence.

A car smashes into this guy's house ... for the 10th time?

Larry Craig should blame his current troubles on this underwear ad from the 60s. Yeah, that should work.

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