Comm 156 - Fair Tax, America's Solution for Her Debt

Fair Tax, America's Solution for Her Debt

COMM/156

12 September 2010

Fair Tax, America's Solution for Her Debit

An analysis of the current tax code would reveal the challenge American citizens face and the debt America is in. Citizens of America can pressure politicians to conduct business approving the Fair Tax bill to solve America's debt crisis. Neal Boortz a writer for the Fair Tax highlighted benefits provided by the Fair Tax which will increase the standard of life by supporting a new revolutionary idea that would allow the working class to keep their entire paycheck, retirees to keep their entire pensions, allowing American products to compete fairly, bring accountability to the tax policy, ensures Social Security and Medicare funding, closes all loopholes bringing fairness to taxation, and abolishes the Internal Revenue Service (IRS). Boortz (2010) While we the citizens believe that our elected officials are performing duties that are in the best interest for the citizens, we have discovered that our officials are conducting business that represents misleading, deceit, and unfair business to those who work. If the citizens of America were presented an idea of a new tax code, that would put more money in their pockets, reform government run programs and decrease the national debt, would Americans vote this in?

Today many American's are finding that America is in a prison term sentence of debt that has locked us down for many unforeseeable years. Corporations have lured us in with their catchy ads and upfront so -called specials that drop out from underneath us, leaving us with high interest, hidden fees, unneeded disability insurance, and corporate gimmicks that lead us through a maze. Government policies have changed the way America spends tax dollars to support many of its programs. To understand America and her debt one should look back to the origin and see the trend that started the snowball effect, resorting to one of America's worst nightmares since the crash of the stock market. Many politicians have become entrapped in the clutches of tax policy, leaving them unwilling to change the way America collects taxes from the American workers. In the recent history we Americans have begun to feel the effects across the board, when gas and oil products soared to record number profits. This corporate greed led to the fall of the housing market, turning American households into an over extended circumstance that has put the economic buying power on hold for many years to come. In the past four years America has been led into one our worst financial periods since the 1920's. One solution to the ongoing problem giving America a way she can solve her own problems, while putting more money back into the pockets of her citizens, will be the Fair Tax. (Boortz, 2010)

In the year 2006 and preceding mortgage companies started a risky practice of lending money for homes that ultimately benefited with mortgage companies while leaving the consumer in a situation of peril. These type mortgages were designed to allow families with very poor credit to purchase homes that were well beyond their ability to afford the monthly cost under traditional loans. The loans were designed for consumers to have a low interest rate for a period of two years, and then an interest spike would occur raising the home owner's payment beyond the monthly rate. This event started the fall of the housing market. Families began trying to refinance their homes, which were abruptly halted since the economy started showing signs of foreclosures. Home values started declining and home owners were faced limited options. This event started the snowball effect that would gain full speed by the year 2009 leaving untold numbers of homes vacant or in financial distress. If American were to adopt the Fair Tax as her tax policy, would have the funds available to save homes with special loan programs that could be made available to the families. Currently our tax system is being drained from those who do not work and pay back into the system, thus leaving those who do work overtaxed to make up for crisis such as the housing market.

In the year 2007 along with the effects we were seeing with the mortgage crisis on the rise Americans were experiencing a massive display of greed from the oil companies. Quarterly reports showed that major oil corporations were turning record profits, while Americans feel the impact and see gas prices at the pump soaring beyond four dollars per gallon. Sean Hannity from Fox news commented that President George W. Bush had made a public statement reminding the Arab Nations that someday they too, will run out of oil and will have to depend on the foreign market. The Arab Nations replied with "Not before America goes broke". Hannity(2008) This was the mentality the nation was dealing with, and Americans had to rely on more credit to survive. The Fair Tax would allow the government to lower the price per gallon at the pump giving her citizens more financial freedom. In addition The Fair Tax would produce a monthly tax return for registered citizens for basic necessities, which ultimately reduces the amount of tax citizens pay.

Businesses were starting to see the upcoming losses and corporations started to take action. Massive layoffs were set in place, along with wage cut backs. The