Video: Herman Cain sings God Bless America

Steve, I understand the 9% sales tax comes with a reduction of the income tax top rate to 9% – a significant advantage for those in the upper brackets.

It may just be gimmickry – it’s certainly not the FairTax, which would eliminate the income tax altogether, along with all the loopholes, exceptions, etc. However, an across-the-board sales tax reduces the power of the Congress to determine winners and show favoritism, as well as reducing the influence of lobbyists. The smaller the income tax, the smaller that power.

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Steve, that’s precisely why the FairTax is better than the present system. Look at all the loopholes, deductions, exemptions and doubletalk that characterize the present program.

With the current system, the Congress can routinely make changes that affect small groups of people without stirring the pot very much. Likewise, they can reward some groups quietly – ever hear of the oil depletion allowance? Look at all the available deductions some time – it’s amazing.

On the other hand, if there’s a FairTax, there’s only one tax, and one rate. Any attempt to change it will be seen immediately because it’s the only tax around. Right now, if the Congress decides to make changes to the oil depletion allowance, it might mean millions of dollars plus or minus to a small group, but for most of us, we might or might not notice the article in the paper, but as soon as we see that it relates to a part of the tax code not affecting us, we’ll pass it by.

Not so with the FairTax, or any national sales tax, as long as it’s kept simple and broad. The more exemptions, the more complexity, the more people’s eyes will glaze over before they get to the end of the article, and the better the chance they’ll let an increase through without even realizing it’s an increase.

You’ve seen what’s happened over the last few years – now imagine there’s only one tax – the FairTax. First of all, enjoy the thought of our Representatives and Senators not being hounded by lobbyists out for special tax breaks for their clients – the FairTax doesn’t permit tax breaks, and so those lobbyists have gone off in search of honest employment.

So the FairTax is at 27% and some yutz rises in the House to call for an increase to 27.5%. You don’t honestly believe that nobody’s going to notice, do you? There’s be no way to sweep it under the rug, no way to hide it, no way to suggest that an increase in the FairTax won’t affect most Americans. It’ll be front-page news across the land.

Such an increase might pass, if it’s justified – but it’s not going to pass in the dead of night, it’s going to pass in the full light of day with every member’s vote recorded.

There are constant hearings on the tax code today, and adjustments and changes routinely being made that none of us know anything about because they’re minor and don’t affect most of us, but in the aggregate they do. With the FairTax, they may hold all the hearings they want, but there’s only one thing that can change, and lots of people will be keeping an eagle eye on it – the tax rate.

I think the FairTax , if implemented, will be incredibly hard to game.

Sorry for the length. Take good care, and

May God bless us all!

TGY

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