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So you think you know about the Fair Tax. 30 December, 2007

Posted by David Anderson in Fair Tax.
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I have long been a skeptic of a national sales tax.  I tended to favor the flat tax. There are many advantages to a national sales tax.  It would encourage investment and savings.  It would be simple and fair and it would eliminate government manipulation of our lives by the tax code.  The disadvantages are that sales taxes are regressive and tend to dampen consumption.   

The Fair Tax eliminates the negatives while keeping the positives.  Every negative evaluation done has been of other proposals of the National Sales tax.  The positive evaluations are of the Fair Tax in HB 25.  Toss out what you think you know.

Let’s start from the beginning.

Imagine a tax system that:
• Allows you to keep 100 percent of your paycheck, pension, and Social Security payments.
• Frees up the time wasted on filling out cumbersome IRS forms.
• Wipes out the income tax code and shuts down the IRS.
• Makes taxation of income unconstitutional by repealing the 16th Amendment.
• Exempts all taxpayers from federal taxation up to the poverty level, through a monthly rebate.
• Ensures that all Americans pay their fair share of taxes.
• Dramatically lowers tax rates for low-income and middle-income Americans.
• Makes taxes visible by eliminating hidden income and payroll taxes in consumer prices.
• Enables families to save more for home ownership, education, and retirement.
• Protects and ensures the funding of Social Security and Medicare.
• Leaves unchanged the amount of money raised by the federal government.
• Makes American products more competitive overseas.
These are the features of the FAIR Tax.  This tax system is the most researched, and I think, the best tax reform plan.

The Fair Tax rate would be 23% or so.  It would feature a monthly prebate of around $500 to eliminate all consumption up to around $24,000 from the tax.  This makes the Fair tax progressive.  It would be like a monthly earned income tax credit. It would also encourage savings by allowing all savings and investment to be tax free.  It would encourage education by not taxing education.  It also stops penalizing domestic corporations and production and taxes imports at the same rate to produce a level playing field

Why do we need to change? The problem is the current income tax code.  The tax code is the main source of the power of the K Street elite. Earmark spending and a Byzantine tax code have given the K Street elite the power to reward or punish potential clients.  They are the twin pillars of corruption in the American system. 

Quoting the Fair Tax website.

The current tax code is unfair, costly, and unreasonably confusing.
• Because the tax code is so complex and easy to evade, many of us pay more in taxes per year than we should! The IRS estimates that over 40 percent of Americans are out of compliance with the current tax code! This makes the rest of us pay about 30 percent more in taxes.
• Over half of American taxpayers seek professional help simply to prepare their returns. And according to Money magazine, chances are 99 percent that you will pay someone to file an incorrect return!
• Compliance with the tax code is not only very difficult and complicated, consuming a total of 6 billion hours, but unreasonably expensive as well. It is estimated that it costs taxpayers $265.1 billion for tax filing, tax record keeping, and tax reduction advice. That’s just shy of $900 for every man, woman, and child in America! We have taxation without comprehension!

Now let’s deal with the critics.  It is often said that the Fair Tax rate would need to be 30% not 23%.  This is false because this analysis is based upon post tax dollars not what you actually earned.  It is not how taxes are currently figured.  If you earn $1250 and $250 is the income tax you pay, you have a 20% rate not a 25% rate.   Since the other taxes would be eliminated, you would not be spending current after tax dollars, but pre-tax dollars.  This 2006 Treasury department “error” has been widely denounced and disproven, but it still lives. 

And most important of all, The Beacon Hill Institute at Suffolk University and Laurence Kotlikoff, Professor of Economics at Boston University, have teamed up to provide a sound methodology for estimating the FairTax base and computing the FairTax rate.4 Their paper demonstrates that the 23 percent rate specified by the Fair Tax Act (HR 25) is eminently feasible and suggests what led Gale5 and the President’s Advisory Panel on Federal Tax Reform6 to reach the opposite – and incorrect – conclusion. (Paper available at http://www.fairtax.org/PDF/TaxingSalesUnderFairTax.pdf.) Beacon Hill Institute and Dr. Kotlikoff estimate the FairTax base for 2007 to be $11,244 billion. Implementing the FairTax rate of 23 percent on this base would generate federal tax revenues of $2,586 billion – $358 billion more than the $2,228 billion in tax revenues generated by the taxes it repeals. Because the FairTax prebate makes spending up to the poverty level tax free, the FairTax base needs to be adjusted for this. Likewise the FairTax base must be adjusted for the administrative credit paid to states and businesses collecting the FairTax. These adjustments to the base total $1,889 billion, resulting in a net FairTax base of $9,355 billion.In 2007, spending at current levels is projected to be $3,285 billion. Revenues from the FairTax at a 23 percent tax rate ($2,586 billion), plus other federal revenues not repealed by the FairTax, are estimated to yield $3,209 billion – an amount $76 billion less than the current CBO…. (http://www.fairtax.org/PDF/Excerpts_from_response_to_tax_panel-103006.pdf) (more…)

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What’s behind Sen. Thompson’s flip flop on the Fair Tax? 29 December, 2007

Posted by David Anderson in Election 2008, Fair Tax, federal.
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Why has Senator Thompson sputtered in the polls? His campaign has been marked by a lack of aggressiveness and major missteps. The media noted his paradoxical statement on abortion even though he is the endorsed National Right to Life Candidate. There is another one overlooked my most. It is highlighted by ABC News.

Senator Thompson changed his mind on the Fair Tax without explanation. In fact he denied that he supported it when on different occasions he publicly supported it. This is a man who criticizes Gov. Romney for changing his positions. At least Mitt acknowledges and explains his evolutions.

Click the link and see the video of his endorsement of the Fair Tax. http://abcnews.go.com/Politics/story?id=3428541

This left Gov. Huckabee as the undisputed leader and his poll numbers began their second climb. The rest is history.

Why do you think he dropped the Fair Tax? Is it because the former Washington Lobbyist heard from his friends. The tax code is the main source of the power of the K Street elite. Earmark spending and a Byzantine tax code have given the K Street elite the power to reward or punish potential clients. They are the twin pillars of corruption in the American system. Sen. Thompson has proven that he is unwilling to push on thos pillars. Gov. Mike Huckabee is.

Thank You! 27 December, 2007

Posted by David Anderson in Uncategorized.
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We have gone from a new blog, unheard of by anyone except the 4 people who started STOP, to thousands  of visitors in the course of a year.  We have helped shape the public debate on toll roads, taxes and fees, and open government.  We have helped transform the Delaware dynamic in the Presidential race.  We have helped give nationwide recognition to Gov. Sarah Palin.  It has been a good year.  Thank you.

Remember those who can’t be home. 25 December, 2007

Posted by David Anderson in Uncategorized.
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by David Anderson

This post is in honor of my brother -in- law SGT Roy Jones USMC who is spending this Christmas hospitalized from Iraq related complications.

http://news.yahoo.com/s/nm/20071224/ts_nm/iraq_christmas_dc

Thank you all who spent this Christmas on duty so the rest of us can celebrate.  You are my heroes. 

I was encouraged by a Christmas story from Iraq.  A church, which was bombed earlier this year by the terrorists, was rebuilt in time for the Mass of Christ.  What was unique is that is was rebuilt by the Muslims for their Christian neighbors as a statement both of love and solidarity against the extremists.  People loving people.  That is what makes this world worth living in. 

This act was made possible by the new security brought about by the sacrifice of American and Iraqi forces.  We are doing some good.  Thanks again.

Paul is the 6 million dollar man. 17 December, 2007

Posted by David Anderson in Election 2008.
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The Ron Paul Revolution continues with a record one day internet take of $6,000,000 plus.  Volunteers organized a tea bag day of $50.00 donations.  It is an incredible feat and it wasn’t even put on by the campaign just supported by it.

What’s behind the Huckaboom? 17 December, 2007

Posted by David Anderson in Election 2008, federal.
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Once upon a time there was a small state governor who decided to become President. The establishment disdained him because he never catered to them. He lived the life of ordinary people. He cared about what mattered in our lives. He connected where we live. They called him an also ran or second tier even though he had the most governing experience a year before the first vote was to be cast.

Then something happened. Under the radar, this candidate set up an Internet network of bloggers and others. He out-shined his rivals in debates. He showed that he wanted to fundamentally reform Washington instead of tinkering with it. Abolish the tax code which is where the special interests get their power over us. Have immigration reform that controls our border and holds responsible those corporations that cynically abuse those who want a better life, instead of disrespecting the hard working people who want a better life. He wasn’t afraid to talk to anyone, even minorities not Republicans. He led the way in defending family and marriage both in policy and by example. He tapped into the Lincoln style people’s party. He represents the Wal-Mart Republicans not the 5th Avenue or K Street Republicans.

He doesn’t need to go around saying “I feel your pain”. People can feel that he understands the middle class anxiety. His proposals would keep free trade while leveling the playing field for American Companies starting with getting rid of the tax breaks that send our wealth and jobs off shore. He is passionate for better education. He doesn’t bring anger to politics but a fix the problem attitude. He is a man of Christian Character. He is not afraid to challenge his own party when it is wrong nor does he shy away from pointing out the problems with the other party. He does it by standing on unchanging core beliefs, yet he understands that everything is not one of those issues. He made a career accomplishing major changes which made a huge difference in millions of lives by collaborating instead of compromising. He is the one Republican with a common touch.

He is the only one of the top GOP contenders who is not a millionaire. He devoted his early life building people not fortunes. That fact puts him suspect in the Wall Street Journal editorial page and the Club for Growth elite. Everything he says is suspect. What right does this former pastor (forget the fact the last 12 years have been in high public office not ministry–Reagan too was always an actor to some of the elite) have to think he can change America? When he says he wants to be the mainstreet president and break the stranglehold of the special interests which own both parties, they know he means it. He owes them nothing. He has always obtained office in spite of the special interests. They don’t finance him. They don’t own him.

That is the root of the appeal which is driving the so-called Huckaboom. It is also why negative reports and smears have never worked on him. It is why he is the Democrats worse nightmare. See the article below.

http://blog.washingtonpost.com/thefix/2007/12/huckabee_democrats_biggest_nig.html

Mike Huckabee’s rapid rise in the Republican presidential race is prompting concern among some Democratic strategists who believe that the former Arkansas governor could become a daunting general election foe should he secure the GOP nomination

These operatives believe that Huckabee’s profile — former Baptist minister, southern governor, fitness preacher — and self-effacing style on the stump could prove an appealing combination for moderate and independent voters.

“Mike Huckabee is the Republican that probably worries me the most,” said Wooten Johnson, a Democratic strategist based in Louisiana. “Unlike the other Republicans, he isn’t flawed in the eyes of the Republican base. But more importantly, he has a record of being a true compassionate conservative. He will be able to attract those suburban voters that don’t want to vote for [a] Democrat.”

Back to me

New polls show he beats Senator Clinton and Senator Obama (trounces Obama and Edwards) in Arkansas. He is dead even with her in the general election in both Zogby and Rasmuessen. He is unknown by a quarter of the people still and yet he runs about even with the leading Democrats nationally.

Like any candidate he has his pluses and minuses. It was common place wisdom that he did not have the organization to handle beyond the early states. That has now changed with the addition of Reagan confidant and campaign Chief Ed Rollins. Rollins sees in Gov. Huckabee a new Reagan. A man of vision and courage who is up to the challenges facing the nation. He sees a man who can connect with the people and communicate with them in way which inspires them. He is right. That is why supporting Mike Huckabee is not Huckacide. It may be the salvation of a party on the verge of being a generational minority again.

The Delaware Presidential Ballot is missing two on GOP side. 4 on Democrat side including Richardson miss cut. 13 December, 2007

Posted by David Anderson in Election 2008.
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From our Friend Dave Burris of Firststatepolitics.

According to the Department of Elections, Mitt Romney and Mike Huckabee have been certified to be on the Delaware primary ballot on Feb.5th.

Unfortunately, Fred Thompson fell short of the 500 signature mark, and will not be on the ballot.

The Delaware ballot for Feb 5th:

  • Rudy Giuliani
  • Mike Huckabee
  • John McCain
  • Ron Paul
  • Mitt Romney
  • Tom Tancredo

Others could be added in the near future should they decide to accept federal matching funds.

Note:  Also missing is Rep. Duncan Hunter.

Exclusive by David Anderson from Dept. of Elections

The February 5th Democratic Presidential Ballot is as follows:

Senator Joseph Biden

Senator Hillary Clinton

Senator Jonathan Edwards 

Senator Barrack Obama

Others may qualify through matching funds criteria.  Any candidate qualifying for federal campaign matching funds gets and automatic slot.  One does have to wonder what the relative disparity between the parties’ candidates efforts to get on the ballot means.  Do Democrats take it for granted or did Joe Biden’s candidacy discourage the second tier?

Info@woundwarrior.com 13 December, 2007

Posted by David Anderson in Uncategorized.
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Dear David,

During the holidays, terrible loneliness can overcome our military and veterans hospitals.

Imagine one scenario: You just lost a leg in Iraq. The pain is unbearable. Your family lives in a distant state. And no doctor can let you escape the wards to go home for the holidays. The story will differ from one wounded warrior to the next, but the plot will be the same for hundreds in the next few weeks.

You and I cannot take them out of the wards, sending them home to celebrate with family and friends. But you can make a secure gift online to help a hero get through this difficult emotional time.

Yes, our troops will put on a brave face and tough it out. But think of the peace you’ll create when a recovered warrior from the Wounded Warrior Project shows up, providing a newly injured hero with peer counseling and proving that an injury doesn’t have to destroy your dreams!

When you support our combat-wounded heroes during the holidays, you’ll do more than give them “things.” You’ll show our injured troops the community outside the hospital walls remembers them and truly cares. More than anything, it’s your kindness that makes your holiday gift so special to a wounded warrior in a hospital bed.

So will you give $25 …or $50 to help our nation’s heroes? For a gift of $99 or more, you can provide one wounded service member with peer counseling, helping them through the effects of combat stress and showing them that they have a life after their being injured, and they can still follow their dreams!

Please act now … and help WWP ensure we have the supplies and resources needed to help these severely injured warriors through the holidays!

Ring in the holidays for our wounded warriors!

John Melia, Executive Director
Wounded Warrior Project

Wash. Post asks Is Huckabee Democrats Worst Nightmare? 6 December, 2007

Posted by David Anderson in Election 2008, federal.
5 comments

 http://blog.washingtonpost.com/thefix/2007/12/huckabee_democrats_biggest_nig.html

 Mike Huckabee‘s rapid rise in the Republican presidential race is prompting concern among some Democratic strategists who believe that the former Arkansas governor could become a daunting general election foe should he secure the GOP nomination

These operatives believe that Huckabee’s profile — former Baptist minister, southern governor, fitness preacher — and self-effacing style on the stump could prove an appealing combination for moderate and independent voters.

“Mike Huckabee is the Republican that probably worries me the most,” said Wooten Johnson, a Democratic strategist based in Louisiana. “Unlike the other Republicans, he isn’t flawed in the eyes of the Republican base. But more importantly, he has a record of being a true compassionate conservative. He will be able to attract those suburban voters that don’t want to vote for [a] Democrat.”

Back to us

New polls show he beats Senator Clinton and Senator Obama in Arkansas.  He is dead even with her in the general election in both Zogby and Rasmuessen. He the man.

Huckabee Number One in Nation. 5 December, 2007

Posted by David Anderson in Election 2008.
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Update: Breaking News 5Dec07: Huckabee new national leader 20% to 17 % –Thompson sinks to 5th. http://www.rasmussenreports.com/public_content/politics/election_2008__1/2008_presidential_election/daily_presidential_tracking_poll

He is now polling even with Mrs. Clinton even though a quarter of people haven’t heard of him. That means he can move up, but not down (barring some political disaster). The latest poll puts him even with Mayor Giuliani. Welcome to the big leagues Governor.

Read this quote from the Rasmussen Reports daily tracking Commentary from 4 Dec 07.

“With less than a month to go before the Iowa caucuses, the Rasmussen Reports daily Presidential Tracking Poll for Tuesday shows that Rudy Giuliani has fallen back in the pack in the race for the Republican Presidential Nomination. Giuliani’s support has fallen to 18% and four other candidates are within six percentage points of the lead. Mike Huckabee is enjoying an amazing surge and now shares the top spot with Giuliani at 18%. Close behind are John McCain at 14%, Fred Thompson at 13%, and Mitt Romney at 12%. Ron Paul attracts 7% of Likely Republican Primary voters nationwide and no other Republican candidate reaches 2% (see recent daily numbers).

In the race for the Democratic Presidential Nomination, Clinton continues to lose ground as well. The former First Lady now attracts 35% of the vote, down from 41% a week ago and 43% two weeks ago. Today’s result matches the lowest level of support recorded for Clinton since Rasmussen Reports began daily tracking in mid-July (see recent daily numbers).”

Back to me. A lot can happen in thirty days. This is only today’s snapshot.

It seems Gov. Mike Huckabee is experiencing a bounce before a vote is even cast. This is the first time this year that Mayor Giuliani has not lead the field by himself. That is significant. It remains to be seen if this is a surge or a bounce. I vote for surge. He is unique in his issues yet bedrock on core Republican values.

That story is the reported one. What is even more intriguing is how Mayor Giuliani’s support is evaporating as many expected. The idea that he was the only electable Republican has been shattered. He will have to retool his campaign on the fly. That is something doable for him, but only time will tell if he will.

Gov. Romney is holding the ground he gained after the last debate in the national polls though his grip is weakening in the early states. You can almost hear the cheering of the national press corps over the latter fact for whatever reason. I think they hate the Governor because he left their side on some social issues, yet it is the right that is suppose to be intolerant. Inspite of the negative media, he is still right in the pack. He has plenty of money and a crack team. His speech Thursday could change the dynamic or get lost in the Christmas clutter. We shall see.

Senator McCain is back from the political dead. He is right in the mix. The surge has vindicated him. He staked his political fortune on principle and is reaping a nice return on investment.

Senator Thompson has lost more momentum than anyone. It has been sustained and shows no sign of reversal. Nonetheless he is still right in the pack. This campaign has shown it can change in a week.
All five are within 6 points and Ron Paul is still behind them but now polling credible numbers almost to the double digits. His support is likely greater than polling because his people are not normal likely voters nor answer house phones. Can he climb over 5 people to get to the top with his unorthodox campaign?

I think this will be the most interesting election in decades– since 1968. It is wide open on both sides. The Republican side is now completely fluid.

I just hope the issues don’t get lost in the coverage of the horse race. Taxes, trade, immigration, health policy, energy policy, and defense policy all still matter. Now that we are free from “the don’t throw your vote away mentality” can we vote for the best person for our future?