Wednesday, May 6, 2009

Have you heard of the Fair Tax

The FairTax is a proposed change to the federal tax laws of the United States that would replace all federal income taxes[1] with a single national retail sales tax. The plan has been introduced into the United States Congress as the Fair Tax Act (H.R. 25/S. 296). If in the course of time we will be forced to pay back the billions which have been borrowed, then maybe we should reconsider how we will raise the revenue neccessary to pay back this debt. Perhaps it would behoove us to consider how an earlier generation handled a similar problem.
Thomas Jefferson, in his second inaugeral address said,"The suppression of unnecessary offices, of useless establishments and expenses, enable us to discontinue our internal taxes". Jefferson understood that the best government was small government. During Jeffersons time,the National debt was 83 million dollars, quite a sum in those days, his goal was to pay off the debt nad balance the budget, sound familiar?
Well old Tom had a plan, and that plan, at the time called a "luxery tax" was actually a consumption tax. In his second inaugeral address Jefferson made reference to this, after having said that his goal was to retire the Federal debt, and eliminate, get this eliminate, internal taxes, he aid the rest could be paid "cheifly by those who can afford to add foreign luxeries to domestic comforts".
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