The “Fair Tax” Is for the Wealthy Only!

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Have Republicans and the far right sold their very souls?

The only thing The Pink Flamingo dislikes about Herman Cain’s 999 Plan is the fact that he wants up to a 9% national sales tax.  Do not confuse the FLAT Tax and a FAIR Tax.  The FLAT Tax, as embraced by Steve Forbes is wonderful!  Everyone pays the same rate.  I do think there should be a minimum deduction before the tax applies, but other than that, go for it.

The talking heads and punditry of the far right love this plan, because it “taxes” everyone.  There is this weird idea that the poor aren’t paying their “fair share”.   If the “rich” are to pay – say 10%, then so should the poor.  The problem with this, is that a family barely hanging on by making $25,000 a year will disparately miss that $2500 to the point where they will end up going without.  Someone who makes $100,000 will complain all the way to the bank, but $10,000 is not going to push them over the edge.

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Byron York wrote:

“…The second objection is that 9-9-9 would add a national sales tax on top of current income and business taxes, and would thus give Congress another tax to raise. Why couldn’t 9-9-9 become 12-12-12? Or 15-15-15? The rates would still seem fairly low. “In the long run it leaves the door open for politicians with the wrong motives to push it upwards, and then we’re stuck with something worse than what we had before,” says a second expert….”

The average senior citizen in this country makes about $26,000 a year.  If taxed 10% that $2600 will probably come out of their medical budget. It is almost impossible to live on $26,000 and have any quality of life. (When I mean “quality of life”, I’m talking about food, fuel, medicine, heat, power, phone).

How do I know?

The Pink Flamingo started doing the banking for my parents about a year ago.  I’ve cut out a number of duplicates to save money.  This is just a little eye-opening FYI monthly tally of their bare bones expenses.

  1. Medicare supplement:  $364
  2. Home, property, vehicle:  $250
  3. Power:  $345 (Otero County Electric has a serious problem over-charging.  They won’t even answer the phone when you complain, and everyone I know who lives near my parents is complaining)
  4. Gas cards now that gas is so high:  $150
  5. Medication (not covered by their supplement):  $450 (minimum)
  6. Satellite:  $120
  7. Phone:  $90
  8. Cells:  $125
  9. Culligan:  $32
  10. Solid Waste Authority:  $64

All of this comes to $1990 – without food, cat food, security monitoring,  and or anything else.  Please, show me where you “save” money.  Sure they could cut off the satellite, then sit around with nothing to watch but the clock tick by on lives that are shattered.  They could scrimp on the medication.  Many do.  That will put them out of our misery, early.

Let’s say now that we’re dealing with the “average” senior citizen income:  $26,000.  When we deduct $23,888 for the bare necessities of life, exactly $2,150 or so is left for food – for the entire year.  If a”FLAT” tax of just 10% is taken out – $2500, the “average” senior citizen will have -$350 for the year.

But that’s “Fair” all right. After all, it’s the senior citizen’s fault that they are no longer working when they are 87 and have Alzheimer’s Disease, or 81 and have a very bad heart condition.

I don’t know which is worse, Obamacare, where they allegedly want to ‘pull the plug’ on seniors or the damn libertarians who want them to take care of themselves.

But wait – there’s no money here to pay property taxes, so the power, fuel, home phone are a mote point.  If property taxes aren’t paid, the county puts them out on the street. Heck, that’s a break, they die early of exposure.

If there is a “FAIR” tax, everything will cost at least 15% more.  Herman Cain lives in fantasy land if he thinks that only 9%.  It’s fair, make the poor pay their share.

Let’s go back to that $23,888 most of which will be taxed. If a 9% “FAIR” tax is added, everything is at last $2100 more.  That’s FAIR.  Make the poor pay their “FAIR” share.

The delusion of the “FAIR” taxers is that they don’t live in reality.  On top of a possible 9% national sales tax are state and local.  Here in Lincoln County we are paying about 9% or so.  In order for the poor to pay their “FAIR” share, we must add an additional $2100 on top of the national sales taxes of $2100.  In other words, sales taxes would be an additional $4200!

Please, explain how this is “FAIR”.

If you are delusionally stupid to think that states/local jurisdictions are going to give up their sales tax in lieu of a federal sales tax, you are not living in the reality of the world.

So, let’s add $4200 to the $23,888 spent just to survive – without food.  That brings a senior’s out of pocket spending to about $28,000.

How do make ends meet?

  1. Sell everything and move in with the kids
  2. Commit suicide
  3. Refuse care
  4. Starve to death
  5. Go into a nursing home
  6. Go on a diet that consists only of water
  7. Kill all your pets
  8. Quit taking your medications
  9. Just give up and die – that’s what they want anyway, right?

If you cannot see what is wrong with this picture, then you are part of the problem.  You have sold your soul to Ayn Rand. You don’t comprehend that good men and women – the Greatest Generation – who were the bedrock of our modern economy, saved the world from Hitler and Tojo, then forked over several million in income taxes over the years – have a right to dignity.  They have a right to be treated with honor, not forced to become the newly impoverished – just for a “FAIR” tax that benefits only the extremely wealthy.

Now, think about a family of four trying to live on $36,000.  THEY CANNOT SURVIVE.  They could, if there were deductions for children, an a minimum income deduction.  There would be nothing left over for clothing, shoes, books, or savings, not when they fork out their ‘FAIR” tax share.

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There’s a point to all of this hyperbole.  The GOP was once the party of the middle class.  They did what they could to protect the middle class, and insure that people who were just barely hanging on without taking any sort of government assistance could.  Now they they have prostituted themselves to the libertarians, there is no middle class.

This is just for your “average” senior.  Those who are “wealthy” don’t fare much better.  The Greatest Generation, who figured that having about $1.5 million in the bank, investments (which have gone south) and real estate (they can’t sell) would leave them sitting pretty the rest of their lives.  These are the men and women who took care of the churches, sent their kids to college, sold their business for a cool million, forked over at least a quarter of that in taxes, and thought they could have a great life.

If they want to remain in their homes and need serious care, it is going to cost at least $125,000 a year.  We’re talking people who once had it all, but, thanks to the economy and the possibility of a “FAIR” tax, they don’t even have the spending power of someone on welfare, which they would NEVER accept.

The Pink Flamingo has begun to see things from the other side of life.  I’m working on a new project involving senior citizens and how we, their children, deal with their problems.  Money is a very serious problem.  The poor things are terrified of Obamacare.  For the most part, many of them have been so brainwashed by a steady diet of FOX libertarians and their worship of Glenn Beck, that they do not see how they are being scammed out of the once very nice life they had.

All of this is a far cry from George W. Bush and his version of “compassionate conservative” which has saved millions of lives in Africa.  Oh, wait, we should require people stand on their own two feet.  If the cannot survive, ‘let ’em die, right?

That’s what Rand would do.

What Christ would do is a different matter, entirely.

Romans 13:5-7
Therefore one must be subject, not only because of wrath but also because of conscience. For the same reason you also pay taxes, for the authorities are God’s servants, busy with this very thing. Pay to all what is due to them—taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honour to whom honour is due.

Our world is becoming quite strange.  I was quite upset the other day, dealing with my parents’ finances and the Alzheimer’s.  Quite despondent, I realized that something has changed in this country.  It is no longer the place it was several years ago.  I also realized it never will be, again, if we do not straighten ourselves out and adjust our attitudes.

We were always a nation of people who paid their taxes, grumbled, tried to beat them, but never threatened a revolt.  We were a middle class nation of middle class, Norman Rockwell values.  The ultra wealthy were something you saw in a Frank Capra movie, or made fun of for their over – the – top lifestyles.  They were not to be envied or emulated.  People just had lives.  They did not stick up for  the ultra wealthy, the took care of one another, in middle America.

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That world no longer exists.

We leave in a mean, cruel nation where everyone must stand on their own without help, a kind word, friendship, or any form of human decency.  It’s not conservative.  It’s not libertarian.  It’s just plain “unAmerican” to expect something for nothing.  You screw up, well, you deserve to be ruined, right?

Wrong.

Thanks to “we the people” who want to be “constitutional” conservatives, and spend our lives damning the government, envying the ultra wealthy, and listening to talking heads tell us that we must defend the rights of less than 1% of the population (which we should, don’t get me wrong) they are ignoring the rest of us.  We are being squeezed into the bottom of society.  That is wrong.

We are all equal.  There is something grossly unjust about amending a tax system so that people who don’t have the means to pay taxes turn into some poor peasant in a Robin Hood movie, with the very life taken from them so the Sheriffs of Nottinghams can have a great life.

That talk of “FAIR” tax is only fair of you are worth quite a bit of money, with quit a cash flow.  If not, there is absolutely NOTHING fair about it.   If you want the truth of the matter, The Pink Flamingo is not feeling all that charitable towards Warren Buffet, Charles & David Koch, The Walton family, George Soros, Bill Gates,  or a heck of a lot of other people.

I’m not feeling very charitable towards the “good” American corporations who are sitting on about $2 trillion in cash they are not investing in our economy.  I read somewhere that it was suggested all that cash just sitting in a few very big banks be taxed at least 10% if a portion is not being used to help better our nation.  Personally, I think they should be hit with 25%.

That is NOT socialism.  Sorry, but if these mult-billion dollar corporations don’t want to “invest” in America, then they should not have the privilege of hording cold hard cash that, a few years ago, would be used to expand and hire.

What ever happened to that image of the American businessman, hands folded in prayer, as he struggled to make ends meet and to see to the needs of the people who worked for him. He was a “can do” go for it guy who was willing to take a chance to make not the life of his family better, but the life of the community better.

Today he has been replaced by a libertarian leaning multi-billionaire who goes back and forth on his private jet.  He has bought and paid for politicians to do his bidding.  He is to be protected at all costs, no matter if the middle class sinks around him.  That’s okay.  He and his political prostitutes are going to get even richer while the rest of us get poorer.

I guess that’s FAIR.

I do have two words for you:

Ebenezer Scrooge

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One thought on “The “Fair Tax” Is for the Wealthy Only!

  1. To be fair to the Libertarians, they don’t expect anyone really to suffer the nine dire consequences unless they so alienate everyone around them that literally nobody cares whether they live or (worse) literally everyone prefers they die. The more Nietzschian among them (and all Libertarianism is ultimately Nietzschian) may think that literally nobody has any positive duty towards anyone else, including family, and that the weaklings who think they have will only serve to undermine themselves to the betterment of the Super Men (i.e. themselves). Most Libertarians don’t go this far, at least not consciously.

    What the Libertarians (and all other anti-totalitarians) get right and why they’re attractive at all to Americans is that they get at least the surface appearance of what the Popes have called “Subsidiarity” right — it is not necessary for a society to pursue all social goods through government mechanisms, and in fact it is both harmful and unjust. This was well-known in the so-called Middle Ages. It has been forgotten today.

    Mainly, this system we have created where 400 people control half the nation’s wealth must be reformed so as to make this impossible. It is necessary that the fruits of our economy be distributed so that everyone can contribute and live in “frugal dignity” and not have to beg for necessities like medical attention or an internet connection. We can argue about cable television, but I think everyone should be able to afford theater or symphony tickets a dozen or so times a year.

    If Republicans want to be republicans and Christians too, they should explore Distributism. It is a very old idea with an unfortunate name. It holds that people should own their own means of support. They should read Belloc and Pesch especially. Chesterton, of course. John Medaille and others. There are a number of reforms that could be made in our central banking system, along the lines Kelso & Adler devised about fifty years ago. There must be limits on the size, scope, and perhaps even duration of corporations. For example, there should not be General Motors: there should be Chevrolet, Pontiac, Buick, Cadillac, Oldsmobile, and so forth. They shouldn’t be allowed to build railroad locomotives either. Corporations like Darden Restaurants and McDonalds should not exist: there is no good reason for them, lots and lots of people can run restaurants and hamburger joints and our policy should be to encourage ownership — real ownership where ownership MEANS control.

    Even when “we” do decide that this or that social good is best provided-for through a government mechanism, that doesn’t mean it has to be the Federal Government. For example, I can see that there will never be a competitive market for (say) medical services because the information asymmetries are simply too great. I can see a need for a socialized mechanism of finance for medical services. You might call that “Medicare”. But fifty “Medicares” would be better along a number of dimensions than one big Federal Medicare. And I think in Missouri where i live there could easily be four “Medicares” and that would have some advantages too.

    As for tax policy, the idea behind a progressive tax is that it is flat(ter) in utility space — it tries to make everyone personally feel the same level of pain due to taxation. One big problem is that with very wide income/wealth disparities, you can’t have a system that is progressive enough to do this, not really. One thing we could do in the short run is treat all income the same — no more distinction between “wage” and “non-wage” income. Capital gains should be indexed to something (maybe ten year T-Bills, maybe something else) and otherwise treated as ordinary income. This also means no more “payroll tax” and an end to a number of Noble Lies. I don’t want to see any kind of “national sales tax” unless it applies as much to securities as it does to shoes.

    Tweaking taxes and providing government entitlements and setting minimum wages are missing the point. They may be necessary in the short term (in the long term, we are all dead as Keynes famously quipped) but they’re missing the point. All the social programs the Democrats love and the Libertarians loathe are but props holding up an inherently unstable, unjust system of Liberalism applied to Commerce. The system of institutions must be reformed — not eliminated as the Libertarians want, but reformed.

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