Opponents of the Fair Tax

Some economists are predicting that the fair tax (HR25/S25) would place the burden of the tax to the poor and retirees.
There have been speculations that it will create new taxes, such as sales on the internet would be subject to the tax. Some also speculate that it gives the Federal Government easier access to raise taxes.
It would also put additional burden on companies, big or small, to become the tax collector for the Federal Government. In return the Businesses would get a 1% of the taxes they collect for the government.
Other opponents claim that it could also cause consumer debt to skyrocket. I have posted a link to a website that explains pesonal opinions of the drawback to the fair tax. You may also click here for more info on the opposition to the fair tax.

My opinion

Whether the S-25HR-25 will cripple or excel the economy, my prediction that the economy would grow. The bottom line is since the ratification of the 16th amendment, new and rising taxes have gone out of control. Most states have implemented a sales tax, most states have a state income tax. Pennsylvania has both sales tax and income tax. There is also the occupational tax in Pennsylvania which is $52 a year.
Tax reform is needed. The entire system indeed due for a complete overhaul. It would not be a bad idea to audit the entire government and cut wasteful spending.
The entire taxpayer roll just seems to be a complete unsigned paycheck for those who have access to the funds. Whether it would be politicians themselves or bureaucrats, your guess is as good as mine. The waste must stop.
No tax reform, no matter of you cut or raise, is going to help unless the waste and spending are under control. That is the bottom line.

U.S. Ban of iPods to North Korea

This is very unique. The U.S. is going to make it tougher on Kim Jong-Il to get his items of luxury. This is the first time the United States has made an trade sanctions of this kind.
This is in cooperation with the United Nations and is the first time ever to include goods such as iPods and and cognac. It would be the first time also that the goods are not things like military buildups or weapon design.
I am in support of anything that may defer development of nuclear weapons by a nation that can use them on innocent people. My opinion is Kim Jong-Il will find an alternative to getting the things he enjoys.
He enjoys many luxuries such as French wines, American movies and luxury vehicles. . Kim Jong Il enjoys gourmet meals and many North Koreans cannot afford to feed themselves.
It seems like a double standard when he enjoys the cognac, the French wines, and Television when he supports a "system" that is meant for economic equality for all. Most North Koreans are very poor so that matches his standard of "economic quality," everyone is destitute. He also supposedly supports a government system where the needy are to be helped by the government. He sure left his people down by staving how many to death.
North Korea is one of the few Communist countries left in the world. It is also a country where you need permits to leave your own village or neighborhood. A country where the people show a great fear of criticizing their leaders. North Korea is notorious for its prison camps. The prison camps have been reported to torture people, to the point where people are in severe disbelief when it is observed.
Are economic sanctions like this helpful? I would have to say the U.S. won't be helping Kim Jong-Il get his cognac and sports cars any longer. I feel other nations as well should support these sanctions.
Kim Jong-Il should be forced to live like his citizens for two years. No cognac or sports cars. Just the terrible conditions most North Koreans live in. Maybe he would understand the agony and despair that they endure.

The Benefits of the Fair Tax

The benefits of the fair tax are as follows.

Abolishes the IRS. (Less Government)
Closes all loopholes and brings fairness to taxation. (Much needed)
Ensures Social Security and Medicare funding. (Better Security for those programs)
Brings transparency and accountability to tax policy. (Much needed)
Allows American products to compete fairly. (Promotes Free Enterprise)
Reimburses the tax on purchases of basic necessities. (Reduces tax burden on the poor)
Enables retirees to keep their entire pension. (Good for consumer and economy alike)
Enables workers to keep their entire paycheck. (Good for consumer and economy alike).

Some of the benefits are that retailers would have a zero corporate tax rate.
Economist estimate as well an "underground economy" or black market would be taxed fairly instead of going untaxed. An estimated 1 trillion dollars a year are spent in an "underground economy."
Some economists speculate that the Fair Tax would drop the price of consumer goods because corproations would have no tax liability. It would make American made products more competitive and give Americans much more spending and consumer power.
So far this sounds like a good idea. I am beginning to like this fair tax the more I read about it. I read alot of good information on the website, more than I could post here. I do have links scattered all over my blog, linking to fairtax.org.
Here is another link to good information.

The Fair Tax

This post is about HR25/S25, which is legislation to enact the "fair tax." I ventured onto this link, fairtax.org, which is a grassroots and non-partisan group that wants to elimiate the current tax code. Instead, the tax would be replaced by a national sales tax. It provides a "prebate" to ensure no American would over pay their fair share. They also favor repealing the 16th amendment.
The Fair Tax would place a sales tax of 23% on items of sale. Taxes would no longer be income based, but on how much you spend. This tax would replace all current federal taxes, such as federal Income, Social Security,and Medicare.
The fair tax would also eliminate the IRS. That would not make me lose sleep.
There are also provisions for people in Federal Poverty Guidelines to exempt or refund their money they paid into the tax.
I am going to do some more research on pros and cons of the fair tax. I will post on the benefits followed by the negatives of the fair tax.

The Preamble of the Constitution

The Preamble of the United States Constitution.

THE Conventions of a number of the States having at the time of their adopting the Constitution, expressed a desire, in order to prevent misconstruction or abuse of its powers, that further declaratory and restrictive clauses should be added: And as extending the ground of public confidence in the Government, will best insure the beneficent ends of its institution

RESOLVED by the Senate and House of Representatives of the United States of America, in Congress assembled, two thirds of both Houses concurring, that the following Articles be proposed to the Legislatures of the several States, as Amendments to the Constitution of the United States, all or any of which Articles, when ratified by three fourths of the said Legislatures, to be valid to all intents and purposes, as part of the said Constitution.

ARTICLES in addition to, and Amendment of the Constitution of the United States of America, proposed by Congress, and ratified by the Legislatures of the several States, pursuant to the fifth Article of the original Constitution.

The 16th Amendment

The 16th amendment authorizes congress to collect a Federal Income Tax.

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

This amendment has been an amendment of much controversy. Through interpretations and scrutiny, the 16th amendment has been challenge in the court of law.
Others have claimed the amendment was never ratified legally.
The amendment was passed by the 61st congress and was declared ratified by three-quarters of the states on February 25, 1913. It was ratified in 42 states.
Something I have been studying recently is the fair tax law. The link is can be found at fairtax.org.
The basics of fair tax is to abolish all federal income taxes and replacing with a single sales tax.
I do have a draft written for a post on it and will be sharing that in the days to come.
I will be investigating and researching the theory the 16th amendment was never properly ratified as well.

The 13th Amendment and the Draft

The thirteen amendment of the United States Constitution abolishes slavery and involuntary servitude. As stated the amendment reads this:

Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.
Section 2. Congress shall have power to enforce this article by appropriate legislation.

Many have speculated that a military draft falls under this amendment as well. This sparked my interest recently because of representative Rangel of New York to re-instate the draft.
Everyone knows that conscription has occurred before. The first draft took place with the War of 1812. It was imposed during the Civil War, WWI, WWII, Korea, and Vietnam. Military conscription did take effects, however without opposition and controversy.
The Draft Riots of 1863 in New York and Vietnam protests in the 1960's and 1970's proves that. Even today men still must register with Selective Service.
Some have questioned whether the draft is constitutional. Some have argued that it coincides with the 13th amendment.
In 1918, the Supreme Court did uphold that the draft was in fact constitutional and did not violate the 13th amendment. During the Vietnam War, a court of appeals concluded the U.S. government had the power to initiate the draft.
As I said before, I oppose military conscription. People are volunteering for military service. It should be a matter of choice whether one chooses to serve or not. It is set to be brought before Congress in early 2007.
Rangel is only trying this as a political stunt.
I always hate to bring race up as an issues, this is making my stomach turn now, but Rep. Charles Rangel feels that minorities are disadvataged when they are recruited into the military.

According to Rep. Rangel 30% of the military are minorities. His bill would include both men and women ages 18 to 26. high school students would get deferments and exemptions. College student would not be able to seek a deferment for college attendance.
Anyone that is ineligible for military service would be required to do some type of community service for little or no pay.
According to Rangel, this would force President Bush and other lawmakers less likely to go to war. It would make a lot of legislators less eager to send troops overseas.

My opinion is that, it would not make our lawmakers think twice about deploying troops. It would not prevent "forcing minorities" into military service. There are exceptions as stated above. People of high class could find a way around the "exceptions."
Rangel's plan is horrible. The government does not own people. The government should not force anyone into the military or perform community service for free, just because they are young. That job belongs in the hands that have committed a tort against society.

Forcing people for no reason to perform community service is a huge violation of the 13th amendment.
I can't stress enough to tell you elected leaders what you think of this legislation. You elected them now tell them how you feel about involutary service.