Monday, April 12, 2010

Would Ronald Reagan Support The Fair Tax

I can not find one quote where Ronald Reagan said that federal taxes are too low.
I can not find one quote where Ronald Reagan said that the federal government is too small.
I can not find one quote where Ronald Reagan said that the federal government has too little to do with Americans everyday life.
I can not find one quote where Ronald Reagan said we should build debt today for our children to pay tomorrow.
I can not find one quote where Ronald Reagan said its OK for the federal government to spend without limit because all the government has to do is raise taxes.
I can not find one quote where Ronald Reagan said that the road to prosperity is paved with ever higher tax brackets.
What Ronald Reagan did say was that lower taxes are the key to prosperity, that limited government was important to keep taxes low, that the difference between our constitution and others was that in our Constitution, the powers of the government were enumerated and bestowed to the federal government by "We The People" versus other constitutions where the government grants freedoms to the people.

I guess that by this point you may be thinking OK, so what does any of this have to do with the Fair Tax and if Ronald Reagan would have been a supporter. Well, I would think that most folks that take the time to read this will have at least heard of the Fair Tax and perhaps know that the Fair Tax is a proposal to eliminate all federal withholding taxes, death taxes, medicare, medicade, social security, and capital gains taxes and replace that revenue with a national sales tax. If you would like more detail, just review my blog, I've detailed the Fair Tax and how it would impact our economy many times.

But back to the question at hand; Would Ronald Reagan Support the Fair Tax Today? I say that the answer to that question would be a resounding YES! Why? Because I would argue that Ronald Reagan believed that the power and wonder of our country resides in the individual, not the government that, the fuel that drives our economic engine is derived from the sweat equity of you and I, not a Nancy Pelosi or a Harry Reid.

So what does this have to do with the Fair Tax? Well, beyond the direct implications and impact on the economy of the Fair Tax, the indirect implications run parallel with what Ronald Reagan Stood for; a country where "We The People" have more power than "We In The Government".

Today, the federal government can tax and spend to their delight, they use the tax code as leverage to gain favor with one group and therefore by definition, punish another. Someone has to pay for those tax breaks. In a word, its corrupt. Even today, April 12, 2010 I heard Mitt Romney on the Factor talk about how he would use the tax code to create jobs. How? He would let companies write off capital improvements in one year rather than five. Folks, that's using the tax code to manipulate people and businesses. If there is no tax code, politicians can not manipulate taxes to curry favor. We the people are in charge, not We the government!

Pretty simple stuff here. If the tax code as we know it is eliminated along with the IRS, how could special interest groups direct tax policy? How could politicians continue to carry the big stick of taxation every day? I believe that Ronald Reagan would see the Fair Tax as not only a superior way to revive our nations economy, but one that restore the balance of power between "We The People" and "We In The Government"

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