Guest Column: FairTax legislation is a jobs creator
BY PHIL SCHILTZ
How can we create more jobs?
Our country currently has three main problems that need addressing:
• a shortage of available, good jobs,
• spending more than we bring in,
• and an inconsistent revenue stream.
The truth is, we don’t have a revenue problem in Washington. We have a spending problem. Cutting spending is important but must be put in second-place for the short-term. Jobs should be the No. 1 priority for Congress in 2013. The ability to increase available jobs and put people back to work relies heavily on the stipulation that two current impediments, high taxes and excessive regulation, can be removed or drastically reduced.
No matter what many think, raising taxes, on the rich or anyone else, is not the answer to our deficit and debt problems. That would create only a drop in the bucket of necessary revenue. More jobs, however, would add a substantial and continuing flow of new revenue to pay down our growing debt/deficit problem while, at the same time, reducing the burden of unemployment, food stamp, and welfare expenditures. Some 5.1 million jobless workers are collecting unemployment benefits, 8.4 million jobless Americans have given up looking for work since January 2009, and the unemployment rate would be 11 percent if these individuals were included in the count!
Excessive regulation and taxes create a stagnant economy because of all the costs businesses are forced to pay. Matching Social Security and Medicare taxes for all employees, business taxes, and over $450 billion in avoidance and compliance expenses annually make products costly and uncompetitive for export.
Many companies have moved overseas in order to give their investors a tax advantage. They will not return to the U.S. until our system gives them a similar advantage in the world market. The FairTax is the only comprehensive answer for this condition. It will:
• eliminate a 73,608-page tax code and the IRS that are slowly destroying free enterprise,
• end all personal and business income taxes, and withholding,
• jump-start the U.S. economy by lowering product costs by removing business taxes and avoidance and compliance expenses now hidden,
• encourage new startups,
• bring jobs back to the U.S. from overseas,
• capture untaxed dollars currently lost to criminal and offshore businesses,
• allow you to keep 100 percent of your paycheck,
• let you save all the money you want and pay taxes only when you spend it,
• eliminate taxes you don’t even know you are paying buried in the cost of products,
• end the sale of tax favors to the rich, the politically connected, and special interest lobbying groups,
• secure funding for Social Security and Medicare with a larger, more stable tax base,
• lower tax rates for all Americans and capture taxes from the underground economy,
• make April 15 just another beautiful spring day.
The FairTax is a 23 percent retail sales tax included in the price of all new goods and services. This allows you to pay tax only when you purchase new goods or services. All used goods are tax free. Every sales receipt would show exactly how much tax you paid for your purchases. To make sure nobody pays taxes on essentials, each legal family unit receives a prebate each month for taxes due on spending up to the poverty level for their size family.
Remember, an income tax is a penalty on productivity. Under the FairTax, you receive the total dollars you earn.
If everyone tells their congressman to support H.R.25 and their senator to support S.13, we can turn this economy around as soon as the FairTax is enacted.
Phil Schiltz is a resident of High Point and a volunteer for Americans for Fair Taxation. His personal website is philibusterdigest.org.