Ways to Solve the Jobs Problem - Fair Tax & Illegals
How does the 16th amendment help business? This authorizes the "progressive" income tax. We all know that more than a mechanism to feed the government's need to defend us, and to enable highways to be built and other things that individuals cannot do by themselves, the income tax has been used as a mechanism for wealth redistribution. Employees do not like this, but the non-working, especially the deadbeats, really do. They think it is fine.
We all think that it is a good thing to help the helpless. It is not good to help make poor people out of those who otherwise would be fruitful contributors to their own lives.
The notion of giving to those who should not need anything returns nothing to the people. The government really decides way too much for the people. And, our government, unfortunately consists of mostly dunderheads who don't know their back end from a hole in the ground. Worse than that, they do not seem to care as long as they get their paycheck. The leadership in Congress is even worse.
The income tax is a convenient vehicle to manage the people's purchases via tax exemptions, credits, and deductions. How does government know what is good or bad for you or for me? Why should we care what they think about what we do? We all know they do not know much about anything because most of them are unfortunately asleep or too inept to make a positive difference. But, they sure know how to get in the way of a citizen's productive life.
Since we do need taxes to support the good parts of government that we the people control, the best tax is clearly a consumption tax. We know that our current income tax system has become absurd when those who make zero dollars by not working are entitled to a refund.
Because the system is intrinsically unfair, everybody tries to scam the system. Its like scam or be scammed. We have all seen waitresses and waiters who treat you and your family quite well. I sure have. You and I know that they prefer to get cash, rather than have the tip on the bill. Why is that? It's because cash is not reportable to the nasty IRS. A consumption tax, such as the FAIR Tax, would force get them along with you and I and even illegal aliens to pay a tax whenever we spend a dime. But, there is no income tax so we have more to spend and we can afford the tax. If restaurant employees choose to spend their tips, they would then pay a tax regardless of whether you gave them cash or it was on the charge card.
Please know that I am not talking about a Value Added Tax or VAT that permits the government to keep the unfair and incredulous income tax and add a 20% sales tax through the supply chain. A FAIR Tax is a national sales tax yes. But, the income tax goes away first. Moreover, there is a way to help those who are poor and those with many children within the FAIR tax.
So, a Fair Tax can save the money the government uses for the IRS to find the tips that these folks might hide. The 16,000 IRS agents for Obamacare at multiple bllions of dollars in salary would not be needed. Instead the tax would be applied evenly on all items in which it is spent.
A consumption / sales tax would therefore force those operating outside the current income tax system to pay their fair share -- whether they are legal or illegal. In this way, nobody gets public services for free. Nobody!
Why is that not something that we all like? Anybody with a job and those who receive money from those with a job all pay taxes. This lifts the burden from only those who work to all.
There is a notion that a sales tax can be a very practical measure by which we will gradually wean ourselves off of our dependence on federal and state services. By slowly lowering the percentage of the tax over time, the size of the government overall can shrink and government services can eventually be returned back to state control where they belong or perhaps, other than those deemed extremely essential, they will be ended entirely.
So that you understand the salient components of the Fair Tax Plan, I have captured the following from the http://www.fairtax.org/ site. It essence is noted below.
What is the Fair Tax Plan?
The Fair Tax 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 neutrality, and, through companion legislation, the repeal of the 16th Amendment.
The Fair Tax Act (HR 25, S 296) is nonpartisan legislation. It 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 Fair Tax taxes us only on what we choose to spend on new goods or services, not on what we earn. The Fair Tax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.
The Fair Tax:
• Enables workers to keep their entire paychecks
• Enables retirees to keep their entire pensions
• Refunds in advance the tax on purchases of basic necessities
• Allows American products to compete fairly
• Brings transparency and accountability to tax policy
• Ensures Social Security and Medicare funding
• Closes all loopholes and brings fairness to taxation
• Abolishes the IRS
The Fair Tax makes taxation fair for everybody from regular citizens to illegal foreign nationals to those involved in illegal activity such as robbery, drug peddling, prostitution, etc. Everybody pays taxes whenever they buy something. Buy nothing and you will pay no tax. It's the only way because it is fair! Some other ideas to help American jobs are shown immediatly below and then we close out this essay.
Jobs for Illegal Foreign Nationals
Another place where Jobs go is to illegal foreign nationals. As part of illegal labor arbitrage, corporations seek to establish the lowest possible wage to drive down the hourly rate that they must pay American and foreign workers. For example it is widely reported that the meat-packing industry average wage is now approaching $8.50 per hour when just fifteen years ago it was at $19.00 per hour. Wages in the construction trades have seen the same downward spiral.
The solution is simple. As of a certain date, without any penalty to the companies, (amnesty of sorts), they get to report the number and the wages of each of their potentially illegal foreign nationals who are employed. No action against anybody will be taken. However, the company will pay a wage differential equal to $5.00 per hour to the federal government for each hour an illegal foreign national has worked in a given pay period. The bottom line is that non-citizens will cost businesses $5.00 per hour more than American citizens.
This would be a voluntary program. However if in government audits, it is found that a percentage of the employees are illegal and the company has not reported the workers' wages and paid the tax, they will owe double the amount plus the cost of the audit and the full cost of the collection.
H-1B and Other Visas
The Visa Program will be examined to be sure it is not used for labor arbitrage and if American workers are available, visas will not be granted and existing visas will be shortened.
All of these methods, from discouraging offshoring to illegal foreign nationals to a proper visa program to better regulations and tax reductions for small businesses will have a major impact on jobs.
The FAIR Tax makes sure that everybody pays taxes and that is fair.