American's numer one issue for November is the economy | Kevin Colby: News and Political blog

American’s number one issue for November is the economy

Economy is the number one issue on American’s minds. So what are John McCain and Barack Obama suggesting about what we do? Nothing really. I have not heard one thing from their mouths about what they are going to do to help the economy. They did talk about tax. Let’s just take a look at their tax policies:

McCain: The average taxpayer in every income group would see a lower tax bill, but high-income taxpayers would benefit more than everyone else.

Obama: High-income taxpayers would pay more in taxes, while everyone else’s tax bill would be reduced. Those who benefit the most - in terms of reducing their taxes as a percentage of after-tax income - are in the lowest income groups.

But neither of these two policies will help the national debt:

The Tax Policy Center estimates that over 10 years, McCain’s tax proposals could increase the national debt by as much as $4.5 trillion with interest, while Obama’s could add as much as $3.3 trillion.

The reason: neither plan would raise the amount of revenue expected under current tax policy - which assumes all the 2001 and 2003 tax cuts expire by 2011. And neither plan would raise enough to cover expected government costs during those 10 years.

Aren’t we supposed to be concentrating on trimming not adding to the national debt?

People, we are kidding ourselves. We need to pass the FairTax Act. Do you know what the FairTAx is and will do for this country?

The FairTax 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.

* 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

Bill Archer, former head of House Ways and Means Committee did a survey on the fair tax. The survey was conducted among 500 European companies. One simple question was asked, ” What would you do if the U.S. installed the FairTax.” The responses where astounding. Four hundred said they would build their next plant here. The remaining one hundred said they would move their corporate headquarters here. And do you know what that means? It means more jobs and a stronger economy.

For more info on the Fair Tax. Link.

Read the full story on the candidate’s tax policies.

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