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Friday, June 15, 2007

To start with...no...I didn't read the book. So if Boortz is listening, I don't wanna hear about it.
On paper and listening to people on the radio, this seems like a great idea. You can read blogs about it and it is even linked to our web page, but there are some fundamental issues I have found through my limited research. I am sure that if anyone reads this, they will send me hate mail and death threats because I don't agree with Boortz, but oh well. Here are the reasons I have found that make me think it won't work. (This is long...bare with me)

#1 - The only way prices will drop on products is if companies lower the wages of their workers. It is like this. If a guy makes $100,000 a year, the company has to pay taxes on that individual. He is only taking home say $80,000 (to use round numbers). Now the company doesn't have to pay those taxes to the govt, but he is still paying the $100,000 straight to the employee. The company saves no money unless wages are reduced.

#2- Not anywhere in the meat and potatoes of H.R. 25 does it mention how to appeal the 16th Amendment. What it does is repeal Subtitle A of the Internal Revenue Code of 1986 with regards to Income Tax and Self-Employment Tax and Subtitle C that relates to Payroll Tax and withholding of Income Taxes. Then...to wrap things up...it says to repeal the 16th. That takes a Constitutional Amendment which has to be passed by Congress and then approved by 3/4 of the States. What incentive does the Govt. have to repeal this after the National Sales Tax is in place? What is to stop them from just adding the Income Tax back after the National Sales Tax? Guess what...it won't abolish the IRS either. They just change their name...that is all. It still calls for a Federal Agency to monitor this.

#3- This is a progressive tax. Says so in H.R. 25. That means that while it starts at 23%, the government can raise that at any time for any reason. And it would be easy to do. This tax will also be placed on top of current taxes. There is no mention anywhere in H.R. 25 of the current Gas Tax. This 23% would be on top of the current taxes we already pay.

#4- This turns every small business man or even kid mowing grass in his/her neighborhood into a tax collector. Yes...that is going to work...

#5- The one everyone hears...black market. It will increase the black market. Would you want to pay a 23% (or more) tax on an item that you can buy on the black market for free? I don't think so.

I did more research and actually came up with more reasons as well, but I am using a lot of space here. I am sure many people, especially in the Atlanta Area, will disagree with me. That is fine. That is why we have freedom of speech.

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