FairTax Clarity

After volunteering an entire weekend with FairTax at the Seaside Balloon Festival in New Smyrna Beach, I have a renewed clarity on my support for FairTax, HR25.

FairTax is a national movement to abolish the Federal Income Tax. Rather than paying taxes on what we earn and invest, we will pay taxes on what we spend. Right now, only those who legally report their income pay income taxes. The more you make, the more money you have to find loopholes in our 70,000 page tax code. Our income tax incentivizes people to do business under the table, to invest overseas, and if they can afford it, to completely move their businesses to countries with more favorable tax codes.

Currently, we're taxed on income (through payroll and income taxes), investments, gifts and most insultingly, we're taxed if we have anything left when we die. Businesses must operate at a profit to say afloat, so when we raise taxes on businesses, they must pass it on to the consumer. That means we only get to keep some of our earnings and then we pay taxes for businesses when we spend that money!

FairTax, HR25, proposes to replace all those individual taxes with one transparent retail sales tax charged only on new goods and services at the final retail level. I'd like to clear up some common, yet valid, misconceptions I heard over the weekend about FairTax:

• FairTax is regressive, the poor will pay more than the rich. FALSE! What makes FairTax unique is the monthly pre-bate. Written into the bill is a rebate to every American household on taxes spent up to the poverty level. Rather than basing it on income, it's based on the Federal Poverty Level and household size. No American will pay Federal Taxes until they spend above the poverty level. If one spends $50,000 in a year, their tax rate is 13.6%. The more you spend, the more you pay in taxes.
• FairTax will promote a black market. Right now, it takes only one person to cheat on their tax return form. Under the FairTax, it takes two people - the person selling the goods and the person buying them. Most retailers will not jeopardize their businesses to save someone the cost of federal taxes. In addition, our trillion dollar black market is finally taxed - do you know a drug dealer or prostitute who legally reports their income? Certainly not! They do, however, legally purchase goods and services in this country.
• How will we fund our roads or social security if you want to end federal taxes? FairTax REPLACES the Federal Income Tax. FairTax has nothing to do with budgeting or spending. FairTax defunds the IRS and eliminates our 70,000 page tax code. Rather than collecting taxes from those who legally report their income, FairTax collects revenue from everyone in America. Americans keep their entire paychecks while everyone in America pays taxes.
• How, in economic times like these, can we count on spending to fund our government? Historically, spending is more consistent than income. Take your unemployed neighbor, for instance. They no longer have a job with income, but they must spend about the same amount of money to merely exist. (Remember, they'll also receive the pre-bate, untaxing all spending up to the poverty level.) And, that unemployed friend may take money out of their 401k or other retirement plan to pay their bills without penalization from our government.
• What about the home mortgage deduction? Well, if you get to keep all your income, there's nothing to deduct! We only have deductions because the government keeps a portion of our income before it hits the bank accounts. Receiving your entire paycheck means no more pandering to get your money back.
• Why not a flat tax? The more you make, the more you pay to the government! Flat tax still depends on people honestly reporting their income to the Federal Government. The flat tax does not repeal the payroll tax, America's most regressive tax of all, which deducts 7.65% from employees paychecks and charges the employer 7.65% for the "privilege" of offering employment. It also keeps the IRS in tact and similarly encourages businesses and wealthy individuals to conduct business overseas.

The FairTax Act, HR25, encourages economic growth and estimates a 10% in our GDP in the first year of implementation. Because America will be a tax haven, corporations throughout the world will flock to our shores, creating jobs and wealth. Currently, American products do not compete on a world-stage because our income and payroll taxes are embedded in every item produced in America. FairTax removes embedded taxes, allowing for fair competition of American products. It also adds the same federal tax to any imported goods sold in America.

No longer will we punish productivity; instead, we will encourage job creation and economic growth. No longer will law-abiding citizens be punished for reporting their income to the IRS. Every American keeps their entire paycheck; everyone in America pays federal taxes.

reprint - letter to the editor re: immigration

Dear Editor:

So many letter writers have based their arguments on how this land is made up of immigrants. Ernie Lujan for one, suggests we should tear down the Statue of Liberty because the people now in question aren't being treated the same as those who passed through Ellis Island and other ports of entry.

Maybe we should turn to our history books and point out to people like Mr. Lujan why today's American is not willing to accept this new kind of immigrant any longer. Back in 1900 when there was a rush from all areas of Europe to come to the

United States, people had to get off a ship and stand in a long line in New York and be documented. Some would even get down on their hands and knees and kiss the ground. They made a pledge to uphold the laws and support their new country in good and bad times. They made learning English a primary rule in their new American households and some even changed their names to blend in with their new home.

They had waved good bye to their birth place to give their children a new life and did everything in their power to help their children assimilate into one culture. Nothing was handed to them. No free lunches, no welfare, no labor laws to protect them. All they had were the skills and craftsmanship they had brought with them to trade for a future of prosperity.

Most of their children came of age when World War II broke out. My father fought along side men whose parents had come straight over from Germany , Italy , France and Japan . None of these 1st generation Americans ever gave any thought about what country their parents had come from. They were Americans fighting Hitler, Mussolini and the Emperor of Japan . They were defending the United States of America as one people.

When we liberated France , no one in those villages were looking for the French-American or the German American or the Irish American. The people of France saw only Americans. And we carried one flag that represented one country. Not one of those immigrant sons would have thought about picking up another country's flag and waving it to represent who they were. It would have been a disgrace to their parents who had sacrificed so much to be here. These immigrants truly knew what it meant to be an American. They stirred the melting pot into one red, white and blue bowl. And here we are with a new kind of immigrant who wants the same rights and privileges. Only they want to achieve it by playing with a different set of rules, one that includes the entitlement card and a guarantee of being faithful to their mother country. I'm sorry, that's not what being an American is all about. I believe that the immigrants who landed on Ellis Island in the early 1900's deserve better than that for all the toil, hard work and sacrifice in raising future generations to create a land that has become a beacon for those legally searching for a better life. I think they would be appalled that they are being used as an example by those waving foreign country flags.

And for that suggestion about taking down the Statue of Liberty , it happens to mean a lot to the citizens who are voting on the immigration bill. I wouldn't start talking about dismantling the United States just yet.

(signed)

Rosemary LaBonte

Choosing NOT to Work

Man and woman riveting team working on the cockpit shell of a C-47 aircraft at the plant of North American Aviation. Office of War Information photo by Alfred T. Palmer, 1942.

I love when my opinions are all of a sudden backed up by reality!!

I've been talking with hubby, Mason, and over the radio waves about unemployment benefits keeping great people from working for well more than a year. Never in my life have I known so many otherwise go-getting adults to choose NOT to work. But never before has there been such incentive to stay unemployed!

If you were laid off in the prime of a career, the benefits of unemployment will easily outweigh the cost of working lower paying jobs. We have guys working second jobs at Wing Zone to make ends meet, but rarely do we see professionals seek employment in order to kick the government benefits.

America has had its fair share of recessions. One great American trait has always been our work ethic - when times got tough, Americans got working. Remember Rosie the Riveter and rationing during WW2? Everyone pitched in to keep our economy going and to support our troops.

Now, millions of Americans collect unemployment rather than taking those two jobs needed to make ends meet. Americans weigh the benefits of working versus the benefits of free-time and free money. Even if a job pays more than unemployment, it's the loss of free time that costs so much more.

A company in Michigan has found out what I've known all along: ...some seasonal landscaping workers choose to stay home and collect a check from the state, rather than work outside for a full week and spend money for gas, taxes and other expenses...

There were times during past recessions when adults worked anywhere available to earn a paycheck. There were times that government handouts were not an option because of the stigma attached. As Bob Dylan sang, "Times, they are a changin'," and it never rung truer than in 2010.

The fact that unemployment benefits have been extended to 18 months has a direct effect on the availability of qualified, experienced workers. Why would anyone take a delivery driving job when they can stay home and have wings delivered?

Rest assured that when benefits run out and we receive a load of applications from newly available workers, I will be asking, "So, what have you been doing for the past 18 months?"

And this leads to another question that's been burning inside: Where are the volunteers?? (To be continued...)

The customer is always right?

We all know the old adage, "The customer is always right," but what happens when the customer turns it around on you?

It's probably been a whole year ago when I was working in our restaurant taking orders and making deliveries. A man came in wearing a Florida State shirt and I said "Go Noles!" and he said "ya right, you probably say that no matter what team."

I said, "No, I'm Alumni!"

"And you work in a place like this? So much for that degree," he replied.

I leaned over the counter and whispered, "I own this place."

I'll never forget that day. Not only was this customer rude to me, but he belittled the establishment that employs 12 people and supports my family.

Unfortunately, this isn't abnormal in our line of business. "The customer is always right" has actually come back to haunt us. What happened to common courtesy? What happened to mutual respect? I provide a product that people enjoy, so why do people look down upon us, or our team members, as if we're less-than-worthy?

Unfortunately, this is a symptom of a larger problem in our society. We often judge people by their cover, not their content. The guy I wrote about above basically assumed I was a loser with a degree because I worked "in a place like this".

What about my guys who take pride in their job and who work 70 hours a week to pay their bills? Why does society look down upon the blue-collar workers as if they could get along without them? Personally, I have a lot of respect for people with degrees working part-time delivering chicken wings. Talk about pride in life rather than fear of judgement. We could all take a cue from them.

We all have a story and that's what makes the world go 'round. Yes, I'm a proud college graduate slingin' protein for a living.

Spewing thoughts...

For those who know me, you know that it's very seldom I have nothing to say! But for the past few weeks, my brain has been so full of all the crazy things happening in America that I can barely put my thoughts together.

Let's talk about this terrible oil explosion in the Gulf of Mexico. I can't be the only one thinking about the coincidence of the explosion, the remarks from President Obama a few weeks about about off-shore exploration and the Cap & Trade bill. I mean, it took only a few days before our Florida Senator Bill Nelson let the world know that we will no longer entertain the idea of off-shore drilling. Nelson is part of the global-warming brigade and in full support of Cap & Trade despite lack of support from his constituents. Rather than focusing on solutions, Nelson is positioning his political gain.

There's been a big rush to demonize BP. Did you know that BP didn't own the platform that exploded? It's just so much easier to blame big oil than to find the truth. Either way, it was an awful accident and we can't begin to comprehend the ramifications. I do appreciate that BP is doing what it can to control it.

Then we have the crazy taxes and regulations that are unfolding now that we can really digest the Healthcare Bill. As a small business owner, I purchase my own health insurance. It's quite pricey and a bit limited, but we sacrifice for the sake of our lives. When I was going over costs today at my doctor's office with their billing person, she assured me that things will be better come 2014. Does she assume that I don't want to pay for my own health insurance? Does she think that the taxpayers should pay for me to have cheaper insurance? I wasn't really in the mood to get into a political debate with her, especially since I LOVE my new doctor, so I just put out the idea that maybe if I don't pay my medical bills until 2014, Obama could go ahead and pay them off for me. I was joking, but she said "well, that may be an option"!!

Over the weekend I met a guy who tore his ACL and has no insurance. He's an example of an otherwise young and healthy American who should have had catastrophic coverage for out of the ordinary things like sports injuries and car accidents. Instead, he's been waiting 9 months for "government assistance" to pay for his $20,000 surgery. I said, "wow, I can't wait until Universal Healthcare is enacted. Your free surgery will happen so much faster!" He agreed! He went on to explain how he can't even work because of his knee injury. Again, I wasn't in the mood to have a serious debate (I was at a wedding after all), so I let it go. This guy is now living on our tax dollars through disability and unemployment waiting for our tax dollars to pay for his surgery. He's using his injury as an excuse not to work. If he can't get a job because he's not qualified, that's one thing; but if he's using his injury as an excuse to leach off the system, we have a problem. I mean, seriously, there are hundreds of thousands of disabled Americans going to work every day. (BTW, my solution to his dilemma is creating a payment plan. If docs and hospitals did that from the beginning, they'd have more people paying their bills. It's his injury, his choice to carry no insurance, and his responsibility - NOT MINE!)

Now we have the consideration of a VAT tax and there are people out there actually defending it. Thankfully, it's not many politicians because they know their careers are on the line. Instead, it's Americans who truly believe that government is the solution, not the problem. The VAT is a tax added to each stage of production and rolled into the final cost of each product. The VAT will not replace our current tax system, instead be added on top of it. The only beneficiary of the VAT is the federal government. The VAT will reduce competitiveness of American goods over seas, it will increase compliance costs, it will increase the costs of good to every American and it will literally stall our economy from any growth whatsoever. Kill the VAT.

How about the "radical solution" proposed by Union Labor to seize our PRIVATE 401ks to bailout their unfunded pension plans? Why isn't this getting news?? Will it happen below the radar while we deal with the oil catastrophe?

Okay, my head is spinning and I'm just beginning... do you feel secure in America? Land of the free, home of the brave... we better fight for it.