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The Fair Tax Solution

The idea presented in “The Fair Tax Solution” by Ken Hoagland is so simple, yet it could have profound positive effects on our country (and the world) if we would just implement it. I highly recommend that every American read this book. Hoagland is not an economist, but that is exactly what allows him to use layman terms to successfully explain this powerful solution to the United States’ current economic situation. Simply put: stop taxing what goes into the economy (earnings, savings, investments) and instead start taxing our consumption. Take control of what you pay to the government. No plan is perfect, but this one seems to have the potential to correct so many of our problems, including our national debt crisis.

 

Almost everyone wins under the Fair Tax, because the tax base is expanded to include all the 15-20 million illegal immigrants in our country, the drug dealers, and every other under-the-table worker. If they spend money here, they pay their taxes under this plan. The poor benefit because they will only be taxed based on their level of spending. Employment goes up because businesses will have the money and motivation to build and expand in America. It will be the end of the IRS and their complex tax forms we have to wade through every year. We won’t need to keep all those detailed records anymore, because the only time we pay a tax is when we spend our money. We all get to take home our paychecks without deductions for FICA and Social Security and Federal Income Tax. True, we pay a higher sales tax, but in the end, it is still less than what we are doing now. Hoagland does an excellent job of explaining how this will benefit our economy and you personally.

 

The losers under this plan are the politicians who currently wield power by continually manipulating our already-too-complex tax code and promising favorable tax legislation to lobbyists, campaign supporters, or favorite causes. Foreign producers would also lose the advantage they currently have in our market. With our current income tax, we penalize businesses for their successes, their creativity, their inventions, their growth, thus driving them out of our country to places where the tax laws allow them to reap the benefits of their work. Under the Fair Tax, “made in America” would mean something again because businesses would be motivated to put their manufacturing plants here.

 

The only way that this Fair Tax will ever get implemented is if there is a groundswell from the citizens, because the politicians will never go for it unless we make them. I plan to be a part of that effort, thanks to Ken Hoagland. So please read this book and then pass it on to your friends. Educate yourself on the Fair Tax. Write to your Senators and Representatives.

 

Spread the word.