Wednesday, October 8, 2008

Mr. President and Taxes

I sadly have to accept that the next President is most likely going to be Sen. Obama. It saddens me that this is the case because he is not what this country needs right now, but is what we are going to get. I just hope that he and the Democrats in congress don't go crazy. This country can not afford the tax and spend policies of the past. We need to move the country forward and that means creating new jobs and paying off the huge amount of debt we are currently racking up at a record pace (about 1 trillion in the last week alone).

I have one suggestion and it won't be real popular with anyone, but it might just help the country out of the mess that it is in. A question was asked during the debate what would either one of them ask the country to sacrifice to fix the mess that we are in. Neither one gave an answer because asking people to sacrifice doesn't win you votes. Here is my plan and it won't win me any friends. We impose a nation sales tax of 1% on everything (think fair tax plan promoted by Huckabee) that would be used solely to payoff the nations debt, period. I know that this is crazy and there currently isn't a mechanism to make this happen, but it is necessary.

We get the smart people together and figure out how to implement it. We also prevent anyone in Congress from tapping into it for any other reason because you know that they will try. You could make all kinds of rules and mess this up, but if done right the American public would put up with it if it meant really paying off our huge debt. It would also open the door to the fair tax policy that would get rid of income tax, which we really need to do because it would end the class warfare in this country. If you buy something then you pay a sales tax, plain and simple. If you buy cheap stuff then you don't pay a lot and if you buy expensive stuff you pay a lot, but regardless the percentage is the same thus fair for everyone. Sen. Obama, you say want a fair tax system and this is it. You can't get any fairer then the same for everyone. This would also close all the loop holes and force companies to pay taxes here and not hide their money abroad.

I ask you, wouldn't you be willing to pay a 1% sales tax to erase our national debt? Let me here what you think because I might be off my rocker with depression over the thought of the next four years with President Obama, Nancy Pelosi, and Harry Reid in charge.

4 comments:

  1. I would pay a 1% sales tax to pay off the national debt IF and only IF I knew for sure, that:

    1. It would go away when the debt was paid off, yea right. Historically once you get a temporary tax in you can keep it in because the American People are "used" to paying it anyway.

    2. As you said, IF you could keep any of teh riders out of it. Unfortunatly so many bills start out fundamentally good, and to get votes, it gets riders. I don't see a anyone in congress approving something that they can't get "their" piece of the pie on.

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  2. Richard,

    You are 100% correct on both accounts. I see this also as a stepping stone to the Fair Tax system, which will eliminate all payroll taxes including FDIC, SS and so forth. It would be great to bring home all the money that we make and then only give it to the government at a time of our choosing. You need to ping on your Congressman and Senator to make sure they know how you feel about this and the Fair Tax.

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  3. I would gladly pay it but check out the growth of the debt. A 1% tax wouldn't even pay the interest on the debt we have now and it is currently increasing nearly exponentially with no reason to think it will slow.

    Government spending has become a major portion of the GDP. Tax revenue is not a factor. They just print money to cover costs. The wars are totally off the books as are all the bailouts and Fed monetary manipulations.

    Do the math. We are at 11 trillion in debt today and if current rates continue will be at 22 trillion before the end of 2010. Neither McCain nor Obama will cut spending or raise taxes.

    The writing is on the wall. We have deflation now because of the commodity crash and the equity contraction in the stock market. It will quickly change to a hyper inflationary crisis as a huge wave of freshly printed money hits the system.

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  4. reddog,

    I know that it isn't the only answer, but it would be a start. That is the problem with this country right now, we never take a first step because there are plenty of people around to say stuff won't work. I'll give you an example, why should be start drilling of more oil because drilling won't solve our problem. The problem with it arguement is it can help and should have been done years ago. Currently, we are doing nothing and it isn't working, so why not get started doing something and make adjustments along the way. Sure 1% does sound like much, but it is a start and a hell of a lot more than we are doing now. Sure we should deeply cut spending and not give any additional tax cuts, but we have to start doing something serious about the debt and not allow congress to screw with it or waste it.

    Thank you for your support of the idea. Tell your Congressman that you want this because with enough grassroot support they might actually pull their collective heads out. I've written my Congressman and told him how I feel. Of course if Obama gets elected then there is zero hope of reducing spending, so the idea goes out the window. It is nice to dream that our grandchildren's children won't still be trying to payoff the debt we are running up.

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