Fact Checking Obama’s Claims About The Pork Spending (Stimulus) Bill

Okay, all is not well with the Obamanation. Here are some facts that have been checked by the Associated Press and have been found wanting:

OBAMA: “My bottom line is, are we creating 4 million jobs?” he told the news conference.

He said in Indiana, “The plan that we’ve put forward will save or create 3 million to 4 million jobs over the next two years.”

THE FACTS: Job creation projections are uncertain even in stable times, and some of the economists relied on by Obama in making his forecast acknowledge a great deal of uncertainty in their numbers.

The president’s own economists, in a report prepared last month, stated, “It should be understood that that all of the estimates presented in this memo are subject to significant margins of error.”

Beyond that, it’s unlikely the nation will ever know how many jobs are saved as a result of the stimulus. While it’s clear when jobs are abolished, there’s no economic gauge that tracks job preservation.

In the long run, this bill will cause a loss of jobs. The money to pay for this massive spending must come from somewhere. Ultimately, it will come out of our economy and hurt our ability to create jobs.

OBAMA: “They’ll be jobs building the wind turbines and solar panels and fuel-efficient cars that will lower our dependence on foreign oil and modernizing our costly health care system that will save us billions of dollars and countless lives.”

THE FACTS: The economic stimulus bill would allocate about $20 billion to help hospitals and doctors transition from paper charts to electronic health records for their patients. Research has shown that in some instances, electronic record keeping can eliminate inappropriate services and improve care, but it’s not a sure thing by any means. “By itself, the adoption of more health IT is generally not sufficient to produce significant cost savings,” the Congressional Budget Office reported last year.

Only proven technology leads to new job creation. Unproven technologies rely on government subsidies to continue, like wind farms that need government dollars to remain on-line. Again, this will lead to fewer jobs in the long run.

OBAMA: “I’ve appointed hundreds of people, all of whom are outstanding Americans who are doing a great job. There are a couple who had problems before they came into my administration, in terms of their taxes. … I made a mistake. … I don’t want to send the signal that there are two sets of rules.”

Obama previously acknowledged he “screwed up” in making it seem to Americans that there is one set of tax compliance rules for VIPs and another set for everyone else. Yet his choice for treasury secretary, Timothy Geithner, achieved the post despite having belatedly paid $34,000 to the IRS, an agency Geithner now oversees.

That could leave the perception that there is one set of rules for Geithner and another set for everyone else.

And let’s not forget how Obama went on a tirade about lobbyists in John McCain’s campaign and yet Obama himself appoints lobbyists to his own staff.

Anyone else think that there aren’t two set of rules here?

OBAMA: “We also inherited the most profound economic emergency since the Great Depression.”

THE FACTS: This could turn out to be the case. But as bad as the economic numbers are, the unemployment figures have not reached the levels of the early 1980s, let alone the 1930s — yet. A total of 598,000 payroll jobs vanished in January — the most in nearly 35 years — and the unemployment rate jumped to 7.6 from 7.2 percent the month before. The most recent high was 7.8 percent in June 1992.

And the jobless rate was 10.8 percent in November and December 1982. Unemployment in the Great Depression ranged for several years from 25 percent to close to 30 percent.

When we do reach the unemployment levels of the 1930’s, it won’t be because of the Bush Administration and the economy growing tax-cuts they enacted. It will be because of the socialist policies the Dems are trying to force down our throats right now.

You can access the complete article on-line here:

FACT CHECK: Examining Obama’s Job, Pork Claims
Calvin Woodward
Associated Press via Yahoo News
February 10, 2009

The Fierce Urgency Of Pork: Charles Krauthammer Column Could Kill Stimulus Bill

This column is amazing. Not for what it says or who wrote it. But for the fact that it was published in the uber-liberal Washington Post.

Sometimes, someone writes a column that is so hard-hitting, so to-the-point that it cannot be ignored for long. You won’t hear about this column on any of the left-leaning television networks, but you should read it and take to heart what it says.

Charles Krauthammer writes:

“A failure to act, and act now, will turn crisis into a catastrophe.”

— President Obama, Feb. 4.

Catastrophe, mind you. So much for the president who in his inaugural address two weeks earlier declared “we have chosen hope over fear.” Until, that is, you need fear to pass a bill.

That’s just for starters. Krauthammer rightly asks about why we should be scared into passing this “pork spending” bill.

The column goes on to describe all of the unethical and outright illegal conduct that the Obama administration has been trying to legitimize, as exampled by Timothy Geithner and Tom Daschle’s tax avoidance problems.

More:

And yet more damaging to Obama’s image than all the hypocrisies in the appointment process is his signature bill: the stimulus package. He inexplicably delegated the writing to Nancy Pelosi and the barons of the House. The product, which inevitably carries Obama’s name, was not just bad, not just flawed, but a legislative abomination.

It’s not just pages and pages of special-interest tax breaks, giveaways and protections, one of which would set off a ruinous Smoot-Hawley trade war. It’s not just the waste, such as the $88.6 million for new construction for Milwaukee Public Schools, which, reports the Milwaukee Journal Sentinel, have shrinking enrollment, 15 vacant schools and, quite logically, no plans for new construction.

It’s the essential fraud of rushing through a bill in which the normal rules (committee hearings, finding revenue to pay for the programs) are suspended on the grounds that a national emergency requires an immediate job-creating stimulus — and then throwing into it hundreds of billions that have nothing to do with stimulus, that Congress’s own budget office says won’t be spent until 2011 and beyond, and that are little more than the back-scratching, special-interest, lobby-driven parochialism that Obama came to Washington to abolish. He said.

Now, in the words of the racist Reverend Jeremiah Wright, Obama’s “chickens have come home to roost.” Clearly, Obama lied to America in order to get the votes. But what is really insulting here is that Obama expected to get away with it. Apparently, he expected America to forget about his promises and statments. Instead, Obama forgot about the Internet that he so masterfully used to come to power.

Read on:

The Age of Obama begins with perhaps the greatest frenzy of old-politics influence peddling ever seen in Washington. By the time the stimulus bill reached the Senate, reports the Wall Street Journal, pharmaceutical and high-tech companies were lobbying furiously for a new plan to repatriate overseas profits that would yield major tax savings. California wine growers and Florida citrus producers were fighting to change a single phrase in one provision. Substituting “planted” for “ready to market” would mean a windfall garnered from a new “bonus depreciation” incentive.

After Obama’s miraculous 2008 presidential campaign, it was clear that at some point the magical mystery tour would have to end. The nation would rub its eyes and begin to emerge from its reverie. The hallucinatory Obama would give way to the mere mortal. The great ethical transformations promised would be seen as a fairy tale that all presidents tell — and that this president told better than anyone.

I thought the awakening would take six months. It took two and a half weeks.

Two and a half weeks. That would make a great name if someone ever made a documentary about the disaster that Barack Obama is shaping up to be.

This column that Charles Krauthammer wrote is a classic for the ages. It is right up there with the fable about the emperor who wore no clothes.

You can access the complete column on-line here:

The Fierce Urgency Of Pork
Charles Krauthammer
The Washington Post
February 6, 2009

And you might also want to read why this spending bill will mean more inflation for the rest of us:

Why ‘Stimulus’ Will Mean Inflation
George Melloan
Wall Street Journal
February 6, 2009

The ACORN Slush Fund: An Example Of Dems Paying Back The Street Thugs

The current spending bill (mis-named as a “stimulus” package) went through the House of Representatives along party lines. Not one single Republican voted for it. Not one. But, eleven Democrats voted agaqinst it it.

It’s a good thing that the Republicans acted in unison on this. That means that the Dems will completely own this bill and whatever results from its passage.

One of those results is handing billions of taxpayer’s dollars to the voter fraud organization known as the Association of Community Organizations for Reform Now or ACORN.

We already know how ACORN routinely engages in voter fraud schemes in order to get leftist candidates (Democrats) elected.

ACORN Voter Fraud Uncovered In Michigan

ACORN Submits Faked Voter Registration Forms

ACORN Voter Fraud Is Widespread

Even More ACORN Voter Fraud

ACORN Tries To Register Mickey Mouse

More Voter Fraud From ACORN

But, they have other activities to keep themselves occupied with as well.

Writing for Town Hall, Michelle Malkin has the following:

ACORN, you may recall, is the left-wing activist group with longtime ties to community organizer-turned-President Barack Obama. The nonprofit, which now takes in 40 percent of its revenues from American taxpayers after four decades on the public teat, has a history of engaging in voter fraud, corporate shakedowns, partisan bullying and pro-illegal immigration lobbying. The Democrats’ stimulus proposals could make the group — and its lesser known but even more radical ideological allies — eligible for upward of $5 billion in new public cash.

Talk about subsidizing failure. These are the same activists that helped sow the seeds of the subprime meltdown. They aggressively played the race card and pressured banks to loosen standards, throw out down payments and lend to some of the nation’s riskiest borrowers. Now, these mobs protest across the country, disrupt foreclosure auctions, threaten bank executives and accuse lenders of, yep, racism for lending to those riskiest of borrowers.

Talk about Orwellian logic. First, ACORN helps to apply pressure to banks to make bad loans and then accuses the bank of racism for making such loans. This is what the Dems in Congress want to subsidize with billions of your dollars?

More:

Under the stimulus bill, as nonprofit watchdog Matthew Vadum points out, the middlemen would be eliminated — “making it easier to get Uncle Sam’s largess directly into the hands of the same people who run ACORN’s various vote fraud and extortion rackets.” Moreover, Vadum reports, “the legislative package provides these funds without the usual prohibition on using government money for lobbying or political activities.”

So, the Dems don’t want ACORN to be under the same lobbying rules as everyone else. Didn’t Barack Obama campaign on restricting lobbyist access to the legislative process? Why is he breaking that promise with ACORN?

Next in line for the stimulus windfall is the Massachusetts-based Neighborhood Assistance Corporation of America (NACA). Founder Bruce Marks proudly calls himself a “bank terrorist.” As I reported last spring, Marks threatened to march into the neighborhoods of bank executives and bully their children. He’s done it for years, all under the guise of “social justice” and “neighborhood stabilization.”

Marks’ agenda is blatantly political and personally lucrative. NACA — with dozens of offices across the country — has a no down payment, no closing costs, low interest rate policy for low-income minority borrowers and takes a hefty fee for each transaction. NACA loan applicants are then required to attend workshops that indoctrinate them in the group’s protest thuggery.

Nazi Brown Shirts. That’s all these people are. They do not deserve to stick their snouts in the public trough, especially when so many Americans are lacking basic necessities. The Dems seem to be okay with denying those necessities while handing monetary payouts to political allies.

This pork spending bill needs to be stopped. The Republicans in the House were right to all vote “Nay.”

You can access the complete article on-line here:

Stimulus Slush Fund For Housing Entitlement Thugs
Michelle Malkin
TownHall.com
January 30, 2009

Promote The FairTax Now!

Here are two ways you can help to get HR25, the FairTax Act, passed.

First, you can encourage the Republicans to rebuild the party around the FairTax by going here:

Tell Republicans To Rebuild Their Party Around The FairTax
RebuildTheParty.com

You can also ask the incoming administration to endorse the FairTax by going here:

Let Everyone Know The FairTax Is The Bold New Idea This Country Needs
White House 2

In The Federalist #21, Alexander Hamilton argued for the Federal Government to have the power to levy taxes.

To the People of the State of New York:

HAVING in the three last numbers taken a summary review of the principal circumstances and events which have depicted the genius and fate of other confederate governments, I shall now proceed in the enumeration of the most important of those defects which have hitherto disappointed our hopes from the system established among ourselves. To form a safe and satisfactory judgment of the proper remedy, it is absolutely necessary that we should be well acquainted with the extent and malignity of the disease.

. . . There is no method of steering clear of this inconvenience, but by authorizing the national government to raise its own revenues in its own way. Imposts, excises, and, in general, all duties upon articles of consumption, may be compared to a fluid, which will, in time, find its level with the means of paying them. The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal; and private oppression may always be avoided by a judicious selection of objects proper for such impositions. If inequalities should arise in some States from duties on particular objects, these will, in all probability, be counterbalanced by proportional inequalities in other States, from the duties on other objects. In the course of time and things, an equilibrium, as far as it is attainable in so complicated a subject, will be established everywhere. Or, if inequalities should still exist, they would neither be so great in their degree, so uniform in their operation, nor so odious in their appearance, as those which would necessarily spring from quotas, upon any scale that can possibly be devised.

It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue.

But, neither Mr. Hamilton nor any of the Founding Fathers ever imagined the beast that would be created a little more than a century later.

Origins of the Income Tax

The federal income tax was established in 1913. It actually required an amendment to the United States Constitution to make it legal. Why? Our Founding Fathers believed that taxing individuals on their private income was economic folly. They were right. The absence of an income tax, a tax on productivity, allowed our economy to grow and individuals to prosper for 124 years.

The original income tax legislation affected only individuals earning $4,000 or more per year, at a time when the overwhelming majority of Americans earned far less. The 16th Amendment was eventually ratified and added to the Constitution, and a national income tax was born.

That 16th Amendment was simply worded, the tax return consisted of only one page, and the entire tax code itself consisted of only 14 pages. No one could have imagined the vast impact it would have on the lives of their children, grandchildren, and future generations of Americans.

Since then, the federal income tax system has become so complex that it requires tens of millions of Americans to seek professional help to comply with it, not to mention the enormous, expensive federal bureaucracy required to enforce and administer the tax. The Internal Revenue Service employs more investigative agents than the FBI and the CIA combined, and with 144,000 employees, employs more people than all but the 36 largest corporations in the United States.

In addition to the $10 billion needed to operate the IRS, at least $265 billion (that is $900 for every man, woman, and child in this country) must be added to account for the cost of complying with the tax code. Massive amounts of our national wealth are consumed merely by measuring, tracking, sheltering, documenting, and filing our annual income.

There have been many efforts at tax reform over the past twenty years, but all of them failed to produce the desired results. Here are three end-goals that any tax reform plan must have in order to be viable:

1) The plan must remove from the IRS any power to intrude on the private lives of American citizens.
2) The plan must remove from the K Street lobbyists any power to influence Congressional votes.
3) The plan must not allow hidden taxes to be passed along to the consumer at any time.

There is only one tax reform plan that addresses all three of these end-goals:

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax — administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

Americans take home their whole paychecks.

Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks.

The prebate makes the FairTax progressive.

To ensure no American pays tax on necessities, the FairTax Plan provides a prepaid, monthly rebate (prebate) for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax?

No tax on used goods. The amount you pay to fund the government is totally visible.

With the FairTax you are only taxed once on any good or service. If you choose to buy used goods − used car, used home, used appliances − you do not pay the FairTax. If, as a business owner or farmer, you buy something for strictly business purposes (not for personal consumption), you pay no consumption tax. The FairTax is charged just as state sales taxes are today. When you decide what to buy and how much to spend, you see exactly how much you are contributing to the government with each purchase.

Retail prices no longer hide corporate taxes or their compliance costs, which drive up costs for those who can least afford to pay.

Did you know that income taxes and the cost of complying with them currently make up 20 percent or more of all retail prices? It’s true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices for everything you buy. If competition does not allow prices to rise, corporations lower labor costs, again hurting those who can least afford to lose their jobs. Finally, if prices are as high as competition allows and labor costs are as low as practical, profits/dividends to shareholders are driven down, thereby hurting retirement savings for moms-and-pops and pension funds invested in Corporate America. With the FairTax, the sham of corporate taxation ends, competition drives prices down, more people in America have jobs, and retirement/pension funds see improved performance.

The income tax exports our jobs, rather than our products. The FairTax brings jobs home.

Most importantly, the FairTax does not burden U.S. exports the way the current income tax system does. The FairTax removes the cost of corporate taxes and compliance costs from the cost of U.S. exports, putting U.S. exports on a level playing field with foreign competitors. Lower prices sharply increase demand for U.S. exports, thereby increasing job creation in U.S. manufacturing sectors. At home, imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparison to other countries’ value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.

The FairTax strategy is revenue neutrality: Neither raise nor lower taxes so consumer costs remain stable.

The FairTax pays for all current government operations, including Social Security and Medicare. Government revenues are more stable and predictable than with the federal income tax because consumption is a more constant revenue base than is income.

If you were in a 23-percent income tax bracket, the federal government would take $23 out of your paycheck for every $100 you made. With the FairTax, if the federal government gets $23 out of every $100 spent in America, the same total revenue is delivered to the federal government. This is revenue neutrality. So, instead of paycheck-earning Americans paying 7.65 percent of their paychecks in Social Security/Medicare payroll taxes, plus an average of 18 percent of their paychecks in federal income tax, for a total of about 25.65 percent, consumers in America pay only $23 out of every $100. Or about 30 percent at the cash register when they elect to spend on new goods or services for their own personal consumption. And this tax is collected only on spending above the federal poverty level, providing important progressivity.

Tax criminals don’t make criminals out of honest taxpayers.

Today, the IRS will admit to 16 percent noncompliance with the code. FairTax.org will be generous and simply take the position that this is likely a conservative estimate of the underground economy. However, this does not take into account the criminal/drug/porn economy, which equally conservative estimates put at one trillion dollars of untaxed activity. The FairTax does tax this — criminals love to flash that cash at retail — while continuing to provide the federal penalties so effective in bringing such miscreants to justice. The substantial decrease in points of compliance — from every wage earner, investor, and retiree, down to only retailers — also allows enforcement to concentrate on following the money to criminal activity, rather than making potential criminals out of every taxpayer struggling to decipher the current code.

Can you decipher the current code? Find out! The following link goes to the Table of Contents of our current tax code (26 USC). Not the full code, just the Table of Contents:

Internal Revenue Code (26 USC) (Warning! If you are on a 56k modem, it would not be a good idea to click this link unless you plan on waiting a while just to view this Table of Contents!)

That’s some list, is it not? 9,833 sections long! You could read the novel War And Peace by Leo Tolstoy before getting through 26 USC.

So, what should we do about it? There really is only one answer. Scrap the entire system and rebuild it from the ground up. I support the FairTax to replace our current tax system. You can get additional information, including research papers prepared by economists from the nation’s leading colleges and universities, by visiting the following website:

Americans For Fair Taxation

Some FairTax Food For Thought

We all know what income tax is as most of us actually pay it. We also know the headaches it causes and how easily the IRS can abuse it’s power when investigating and auditing private citizens. But where did this monstrosity come from?

In The Federalist #21, Alexander Hamilton argued for the Federal Government to have the power to levy taxes.

To the People of the State of New York:

HAVING in the three last numbers taken a summary review of the principal circumstances and events which have depicted the genius and fate of other confederate governments, I shall now proceed in the enumeration of the most important of those defects which have hitherto disappointed our hopes from the system established among ourselves. To form a safe and satisfactory judgment of the proper remedy, it is absolutely necessary that we should be well acquainted with the extent and malignity of the disease.

. . . There is no method of steering clear of this inconvenience, but by authorizing the national government to raise its own revenues in its own way. Imposts, excises, and, in general, all duties upon articles of consumption, may be compared to a fluid, which will, in time, find its level with the means of paying them. The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal; and private oppression may always be avoided by a judicious selection of objects proper for such impositions. If inequalities should arise in some States from duties on particular objects, these will, in all probability, be counterbalanced by proportional inequalities in other States, from the duties on other objects. In the course of time and things, an equilibrium, as far as it is attainable in so complicated a subject, will be established everywhere. Or, if inequalities should still exist, they would neither be so great in their degree, so uniform in their operation, nor so odious in their appearance, as those which would necessarily spring from quotas, upon any scale that can possibly be devised.

It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue.

But, neither Mr. Hamilton nor any of the Founding Fathers ever imagined the beast that would be created a little more than a century later.

Origins of the Income Tax

The federal income tax was established in 1913. It actually required an amendment to the United States Constitution to make it legal. Why? Our Founding Fathers believed that taxing individuals on their private income was economic folly. They were right. The absence of an income tax, a tax on productivity, allowed our economy to grow and individuals to prosper for 124 years.

The original income tax legislation affected only individuals earning $4,000 or more per year, at a time when the overwhelming majority of Americans earned far less. The 16th Amendment was eventually ratified and added to the Constitution, and a national income tax was born.

That 16th Amendment was simply worded, the tax return consisted of only one page, and the entire tax code itself consisted of only 14 pages. No one could have imagined the vast impact it would have on the lives of their children, grandchildren, and future generations of Americans.

Since then, the federal income tax system has become so complex that it requires tens of millions of Americans to seek professional help to comply with it, not to mention the enormous, expensive federal bureaucracy required to enforce and administer the tax. The Internal Revenue Service employs more investigative agents than the FBI and the CIA combined, and with 144,000 employees, employs more people than all but the 36 largest corporations in the United States.

In addition to the $10 billion needed to operate the IRS, at least $265 billion (that is $900 for every man, woman, and child in this country) must be added to account for the cost of complying with the tax code. Massive amounts of our national wealth are consumed merely by measuring, tracking, sheltering, documenting, and filing our annual income.

There have been many efforts at tax reform over the past twenty years, but all of them failed to produce the desired results. Here are three end-goals that any tax reform plan must have in order to be viable:

1) The plan must remove from the IRS any power to intrude on the private lives of American citizens.
2) The plan must remove from the K Street lobbyists any power to influence Congressional votes.
3) The plan must not allow hidden taxes to be passed along to the consumer at any time.

There is only one tax reform plan that addresses all three of these end-goals:

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax — administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

Americans take home their whole paychecks.

Not only do more Americans have jobs, but they also take home 100 percent of their paychecks (except where state income taxes apply). No federal income taxes or payroll taxes are withheld from paychecks, pensions, or Social Security checks.

The prebate makes the FairTax progressive.

To ensure no American pays tax on necessities, the FairTax Plan provides a prepaid, monthly rebate (prebate) for every registered household to cover the consumption tax spent on necessities up to the federal poverty level. This, along with several other features, is how the FairTax completely untaxes the poor, lowers the tax burden on most, while making the overall rate progressive. However, the FairTax is progressive based on lifestyle/spending choices, rather than simply punishing those taxpayers who are successful. Do you see how much freer life is with the FairTax instead of the income tax?

No tax on used goods. The amount you pay to fund the government is totally visible.

With the FairTax you are only taxed once on any good or service. If you choose to buy used goods − used car, used home, used appliances − you do not pay the FairTax. If, as a business owner or farmer, you buy something for strictly business purposes (not for personal consumption), you pay no consumption tax. The FairTax is charged just as state sales taxes are today. When you decide what to buy and how much to spend, you see exactly how much you are contributing to the government with each purchase.

Retail prices no longer hide corporate taxes or their compliance costs, which drive up costs for those who can least afford to pay.

Did you know that income taxes and the cost of complying with them currently make up 20 percent or more of all retail prices? It’s true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices for everything you buy. If competition does not allow prices to rise, corporations lower labor costs, again hurting those who can least afford to lose their jobs. Finally, if prices are as high as competition allows and labor costs are as low as practical, profits/dividends to shareholders are driven down, thereby hurting retirement savings for moms-and-pops and pension funds invested in Corporate America. With the FairTax, the sham of corporate taxation ends, competition drives prices down, more people in America have jobs, and retirement/pension funds see improved performance.

The income tax exports our jobs, rather than our products. The FairTax brings jobs home.

Most importantly, the FairTax does not burden U.S. exports the way the current income tax system does. The FairTax removes the cost of corporate taxes and compliance costs from the cost of U.S. exports, putting U.S. exports on a level playing field with foreign competitors. Lower prices sharply increase demand for U.S. exports, thereby increasing job creation in U.S. manufacturing sectors. At home, imports are subject to the same FairTax rate as domestically produced goods. Not only does the FairTax put U.S. products sold here on the same tax footing as foreign imports, but the dramatic lowering of compliance costs in comparison to other countries’ value-added taxes also gives U.S. products a definitive pricing advantage which foreign tax systems cannot match.

The FairTax strategy is revenue neutrality: Neither raise nor lower taxes so consumer costs remain stable.

The FairTax pays for all current government operations, including Social Security and Medicare. Government revenues are more stable and predictable than with the federal income tax because consumption is a more constant revenue base than is income.

If you were in a 23-percent income tax bracket, the federal government would take $23 out of your paycheck for every $100 you made. With the FairTax, if the federal government gets $23 out of every $100 spent in America, the same total revenue is delivered to the federal government. This is revenue neutrality. So, instead of paycheck-earning Americans paying 7.65 percent of their paychecks in Social Security/Medicare payroll taxes, plus an average of 18 percent of their paychecks in federal income tax, for a total of about 25.65 percent, consumers in America pay only $23 out of every $100. Or about 30 percent at the cash register when they elect to spend on new goods or services for their own personal consumption. And this tax is collected only on spending above the federal poverty level, providing important progressivity.

Tax criminals don’t make criminals out of honest taxpayers.

Today, the IRS will admit to 16 percent noncompliance with the code. FairTax.org will be generous and simply take the position that this is likely a conservative estimate of the underground economy. However, this does not take into account the criminal/drug/porn economy, which equally conservative estimates put at one trillion dollars of untaxed activity. The FairTax does tax this — criminals love to flash that cash at retail — while continuing to provide the federal penalties so effective in bringing such miscreants to justice. The substantial decrease in points of compliance — from every wage earner, investor, and retiree, down to only retailers — also allows enforcement to concentrate on following the money to criminal activity, rather than making potential criminals out of every taxpayer struggling to decipher the current code.

Can you decipher the current code? Find out! The following link goes to the Table of Contents of our current tax code (26 USC). Not the full code, just the Table of Contents:

Internal Revenue Code (26 USC) (Warning! If you are on a 56k modem, it would not be a good idea to click this link unless you plan on waiting a while just to view this Table of Contents!)

That’s some list, is it not? 9,833 sections long! You could read the novel War And Peace by Leo Tolstoy before getting through 26 USC.

So, what should we do about it? There really is only one answer. Scrap the entire system and rebuild it from the ground up. I support the FairTax to replace our current tax system. You can get additional information, including research papers prepared by economists from the nation’s leading colleges and universities, by visiting the following website:

Americans For Fair Taxation

Three Lies Told By Barack Obama During The Campaign

First: Barack Obama claims that his relationship with domestic terrorist Bill Ayers went no further than Ayers being “a guy who lives in my neighborhood.” Well, Bill Ayers himself does not agree with Barack Obama on this.

Rex W. Huppke of the Chicago Tribune has this to say:

In a new afterword to his memoir, 1960s radical William Ayers describes himself as a “family friend” of President-elect Barack Obama …

A “new afterward.” Not an old one, but a new one. Sounds like Ayers was at least a little more than some guy who lived in the Obama’s neighborhood.

Second: Barack Obama claimed that he never knew that the pastor at his church was a racist hate-monger. But back in 2004, he told a different story. According the Cybercast News Service:

[An interview was conducted] on March 27, 2004 by Chicago Sun-Times religion writer Cathleen Falsani for a story on Obama’s faith, but the interview was not released in its entirety until now.

“One of the churches that I became involved in was Trinity United Church of Christ,” Obama said in the interview. “And the pastor there, Jeremiah Wright, became a good friend. So I joined that church and committed myself to Christ in that church.”

Obama began attending the church in 1988 and formally joined Trinity in 1992. Falsani asked, “Do you still attend Trinity?”

Obama answered, “Yep. Every week. 11 o’clock service. Ever been there? Good service.

Anyone care to guess why that interview was put under wraps? Probably because it would have exposed Barack Obama as a race-baiting liar.

Third: The Obama campaign claimed they would move away from lobbyists as he brought “change” to Washington D.C. Well, that promised change was a lie.

One of the people brought on-board by Obama is Mark Gitenstein, a lobbyists who engineered a twelve million dollar contract with the U.S. Chamber of Commerce and promoted Boeing and General Dynamics. More recently, he lobbied for AT&T, Merrill Lynch, KPMG and Ernst & Young. (Bailout anyone?)

Look at the other lobbyists Obama is bringing into his fold. According to Ed Morrissey at Hot Air:

  • Ron Klain – Joe Biden’s chief of staff, had lobbied for Fannie Mae on “regulatory matters” until 2004, when the fraud got uncovered after years of Congressional interference with regulators. Klain also lobbied for companies defending asbestos lawsuits and for ImClone, the drugmaker that faced charges of fraud.
  • John Podesta – The man running Obama’s transition spent the last few years lobbying for the far-Left group Center for American Progress.
  • Patrick Gaspard – Lobbied on health care issues on behalf of the SEIU, now associate personnel director for the transition team

Podesta has an even more interesting tie to lobbying. Bill Clinton enacted a five-year ban on former White House staffers lobbying present and future administrations in order to curtail influence peddling. However, after George Bush won in 2000, Clinton rescinded the order to help his staffers get jobs in the wake of the Republican sweep to victory. The man who helped write the revocation? John Podesta.

Once, Barack Obama spoke against lobbyists. Now, he has surrounded himself with them. And no, I don’t believe he is emulating Jesus who surrounded himslef with sinners in an effort to redeem them. This Obama administration is all about power, not redemption.

You can access the stories on-line here:

Bill Ayers: Barack Obama A ‘Family Friend’
Rex W. Huppke
Chicago Tribune
November 13, 2008

Despite Campaign Claim, Obama Told Paper He Attended Trinity Church ‘Every Week’
Fred Lucas
CNSNews.com
November 13, 2008

Lobbyists In Key Positions In Team Obama Transition Team
Ed Morrissey
HotAir.com
November 15, 2008