Sunday, June 7, 2009

Michigan Fair Tax is really Marxism!

Marxism |ˈmärkˌsizəm|
noun
the political and economic theories of Karl Marx and Friedrich Engels, later developed by their followers to form the basis for the theory and practice of communism.

Central to Marxist theory is an explanation of social change in terms of economic factors, according to which the means of production provide the economic base, which influences or determines the political and ideological superstructure. Marx and Engels predicted the revolutionary overthrow of capitalism by the proletariat and the eventual attainment of a classless communist society.


If the Michigan FairTax gets on the ballot for 2010, and passes, you will be taxed on food as well as any and all co-pays for doctor visits and prescription drugs.

The Fair Tax would, if adopted, give birth to a new tax raising code to satisfy the wants and fancies of tyrants in government___ all the above to be implemented under the pretext of the "Fair Tax Reform“, a reform which promises to abolish the IRS and income taxation, but in substance and truth will only tighten the iron fist of government around the people’s productivity, and demand the less fortunate people in our society to shamefully kneel to the iron fist of government to receive their monthly government check___ a family consumption allowance which cleverly creates a new army of voters dependent upon folks in government for their subsistence.

Were we not warned by Hamilton in Federalist Paper 79 that “A POWER OVER A MAN’s SUBSISTENCE AMOUNTS TO A POWER OVER HIS WILL”?


Here's what one FairTax promoter is saying.

Under the proposed MI FairTax, not only will every legal Michigan resident NOT have a paycheck deficit, they will enjoy their full paycheck (minus unchanged federal, city income tax withholding) but will receive a state "prebate" amount, monthly - based on family size, that will UNtax poverty-level spending (as determined by the Commerce Dept. from time to time). Thus, the monthly $85 prebate received from the state effectively UN-taxes $1,014 spent per month for a "family of one," a monthly prebate of $172 effectively UN-taxes $2,067 spent each month for a family of four. (See chart at http://www.mifairtax.org/resrcs/RebateTable-MI_Explanation.pdf )


"a family consumption allowance which cleverly creates a new army of voters dependent upon folks in government for their subsistence."

Back in April I had an email debate with some of the Michigan FairTax promoters and asked some pointed questions about what they claimed it would do and what I actually read in the FairTax bill that it would do. I received this response from Roger Bucchholtz, the volunteer director of this movement.

The MI FairTax is not the answer to all problems.

It does not immediately cut the funds to the state as many citizens think would be desirable. However, it makes our true tax burden visible for the first time in generations. This knowledge is essential for citizens to address the level of taxation. If we aren't aware that on average 20% of the price of the goods and services we buy that are produced in the U.S. are taxes embedded in the price, we citizens will not be able to address the problem. The MI FairTax will appear on every sales receipt.

It does not create jobs directly, but by removing embedded taxes from the prices of Michigan produced goods and services Michigan business and labor will be better able to compete in the global economy. The elimination of most business taxes will give Michigan the most business friendly tax environment in the U.S. ... and this just might cause companies and jobs to move to Michigan.

It does not eliminate the problem of high individual real estate taxes (property taxes) however, by eliminating the state (not local) property taxes on business property we decrease the cost of products made in Michigan, thus lowering our cost of purchasing these products and making Michigan business and labor more competitive. Although much consideration was given to eliminating local property taxes via the MI FairTax, it was not done at this time primarily because doing so would result in the sales tax rate being too high relative to other states which would make purchasing from out of state economically attractive.

The MI FairTax proposal does not eliminate city income taxes. This is partially because doing so would cause the sales tax rate to be too high relative to other states, and it is generally considered to be a local issue rather than a statewide issue.

The proposal does allow for the tax rate to be increased... but only by a vote of the people. It can not be increased by the legislature.

The MI FairTax does not dismantle all of the state tax collection and enforcement bureaucracy, but by eliminating state income tax and business taxes the Treasury Department will be cut in half at a minimum. At the national level the the FairTax the IRS will be replaced by a Treasury group 10% of today's size.

MI FairTax is supported by Republicans... and Democrats, Libertarians, Greens, Constitutional, independents, etc. We welcome all who want to bring about real tax reform and to introduce a tax system consistent with what our Founding Fathers intended.

I appreciate your passion for change that is real and lasting. I encourage you to visit www.fairtax.org to view the economic studies done by top economists from America's best universities and think tanks... including the Cato Institute, a Libertarian think tank. I also encourage you to look more at the MI FairTax website www.fairtax.org for how the MI FairTax will do more for Michigan and its citizens and our freedom than any other legislation contemplated or possible.

We are all working for major change in the same direction... toward that which our Founding Fathers intended. We have assembled on the eve of Tax Day Tea Parties across the state in a combined effort to bring about this change. It is counterproductive to point at each other to find fault, whether that fault is real or mistaken. We must work together now and in the future or we will all fail. We know the enemy and it is not us. Let's get the job done.

Roger Buchholtz

MI FairTax diirector (volunteer)

It's up to each and every one of you to fully examine this FairTax proposal with open eyes before making up your mind about supporting or not supporting it. I did and I do not support this Amendment to our State Constitution.

14 comments:

apackof2 said...

Will you please cross post this on Grassroots in Michigan? http://mitcot.ning.com/

I will feature it

Author said...

The 'fair tax' like the 'USA Patriot Act' sounds inviting, but when one examines the intent it is clear these are NOT in the best interest of the people.

Ian said...

Hmmm... now, let's see... Income Tax (IT) vs FairTax (FT):

IT: Confiscates wages, MI takes theirs first every working hour.
FT: Ends wage withholding.

IT: "We work for the pol's every working hour." They create a deficit in family pay, which the family may make up for by using CREDIT CARDS (and paying another "hidden tax" CC interest - OH, THE BANKERS LOVE IT).
FT: Because MI gov't would be put on the SPENDING SIDE of the family ledger, the gov't benefits ONLY AS OUR FAMILY BENEFITS thru purchases.

IT: Want to lessen your tax burden? Don't work.
FT: Want to lessen your tax burden? Make your own clothes. Grow your own food. BUY USED. (You can still plan for wealth, because you are FREE TO WORK ALL YOU WANT WITHOUT PENALTY.)

IT: Taxes business income & payrolls.
FT: Ends this. Makes true tax cost to consumers, visible.

IT: Biz taxes not removable from (higher) prices (paid by consumers) and accompanies goods shipped to export markets (lessening competitiveness).
FT: Ends this self-wound-inflicting trade policy.

IT: Biz taxes = hidden taxes.
FT: Visible.

IT: Penalizes productivity: Hire an employee? Hit with more taxes.
FT: ENDS this.

IT: Deprives families of the "fruits of labor."
FT: ENDS this. Rightfully restores the "bread" to those who make the "dough."

IT: Has a TAX CODE with which politicians and lobbyists love to play footsie.
FT: ENDS tax favors to the few at cost to the many - because the TAX CODE (favoring the power elite) is replaced with a simple PREBATE that UN-taxes all poverty level spending for the family. BRILLIANT! NO TAX CODE NEEDED.

IT: Taxes us multiple times.
FT: Taxes NEW goods and services AT RETAIL only ONCE! (And NO TAX on business-to-business sales, which replicates hiding taxes in prices consumers pay.)

IT: Every working person is a candidate for COLLECTION (read: interest, penalties, audits).
FT: Only those who own retail businesses will be required to COLLECT the tax ("at the cash register"). Reduces "points of collection" by 90%!

IT: Requires income tax return, only after complicated calculation - IN ARREARS - of "taxable income."
FT: ENDS INCOME TAX RETURNS. Sales & Use tax returns (already operational in MI), much easier to fill out - not 60,000 pages of Income Tax Code to follow. Precise amount of tax easily known, based on sales - remitted monthly.

IT: Every working person is a candidate for a "tax deficiency."
FT: PAID IN FULL (at the cash register).

IT: Taxes income, regardless if from sales of new, or used, goods.
FT: USED GOODS NOT TAXED.

IT: Look it up, Rose - it was a heavily progressive INCOME TAX - that was a tenet of Marxism.
FT: Anti-thetical to Marxism, because control of the family purse is in the hands of the family.

IT: Annualized basis, NOT UNIFORMLY APPLIED. The wealthier one is, the greater access to tax professionals. And, the tax code is ONLY TO HAPPY to provide shelters to the super-rich.
FT: Non-annualized basis. UNIFORMLY APPLIED without special treatment for the wealthy. The more you spend, the higher the FT rate you pay. Using a family of four, MI FT rate of 9.75% (BEFORE APPLYING THE REBATE) and spending shown (over 12 monthly periods) result in the EFFECTIVE (post-REBATE APPLIED) rate for that family:

Spending of $21,200 = NO TAX(Prebates rec'd covered all taxes.)
Of $ 42,400 = 4.88% (effective MI FairTax %, after prebate applied)
Of $ 50,000 = 5.62%
Of $100,000 = 7.68%
Of $200,000 = 8.72%
Of $800,000 = 9.49%

Please, SOMEBODY, TELL ME THAT THE MICHIGAN FAIRTAX IS NOT FAIR???! (and I'll tell you to get your head examined).

Generally, you have interesting and informative stuff posted. But, on the subject of FairTax, YOU'RE ALL SCREWED UP.

Rose said...

As I said Ian, each person must make their own mind up but with open eyes. Not the lies that you guys are using to market this crap.

The Fair Tax would, if adopted, give birth to a new tax raising code to satisfy the wants and fancies of tyrants in government___ all the above to be implemented under the pretext of the "Fair Tax Reform“, a reform which promises to abolish the IRS and income taxation, but in substance and truth will only tighten the iron fist of government around the people’s productivity, and demand the less fortunate people in our society to shamefully kneel to the iron fist of government to receive their monthly government check___ a family consumption allowance which cleverly creates a new army of voters dependent upon folks in government for their subsistence.

Were we not warned by Hamilton in Federalist Paper 79 that “A POWER OVER A MAN’s SUBSISTENCE AMOUNTS TO A POWER OVER HIS WILL”?

Ian said...

You're calling the FairTax "Marxist" then calling ME a liar?

How large is the "deck you're playing with"? (Could it be apackof2? Yes, that would explain it.)

Rose said...

So Ian, are you saying that giving the state the power to control our subsistence (food and medical) and allowing them to expand their taxing power to include things that are un-taxable now?

Are you saying that The Fair Tax would, if adopted, would NOT give birth to a new tax raising code to satisfy the wants and fancies of tyrants in government___

And that a family consumption allowance WON'T cleverly create a new army of voters dependent upon folks in government for their subsistence.

Ian said...

Income Tax (IT) FairTax (FT):

IT: Controls our subsistence - because it taxes our productivity.
FT: Freedom from that control, because the gov't gets paid on OUR time table (when we go shopping for NEW, at RETAIL). We can GROW our food WITH NO TAX under FT. (Doesn't work under the current tyranny.)

IT: Burden's us with hidden taxes in higher prices - we don't KNOW how much tax we're actually paying.
FT: Doesn't discriminate as to basis. Put it this way: Take food and healthcare OUT of the basis, RAISE THE RATE. So, it's a zero sum game. They're going to get what they're going to get. BUT under FT they can NOT HIDE what they say they need. THEREFORE, they have to START BEING ACCOUNTABLE FOR THEIR SPENDING (get it).


FT: Correct. It does NOT give birth to a new tax code. No credits, deductions, exemptions. Can't control social behavior with OUT a tax code - and the FairTax replaces the INCOME TAX CODE it with a simple PREBATE (which every legal resident family receives).

IT: Currently has a TAX CODE that's gamed by lobbyists and special "tax taker" interests (e.g., ACORN).
FT: EVERYONE GETS THE FAMILY CONSUMPTION ALLOWANCE - No qualifications (other than, of course, residency).

tame1 said...

Rose, what I don't think you really get is that one of the tenets of the Fair Tax as envisioned in the book by the guys who thought it up is that the current Federal witholding (that's fed income tax, SS tax, Medicare, Medicaid, etc.) would become banned by Constitutional amendment. You made comments stating that it would be IN ADDITION TO those taxes.

If someone has hijacked the original concept and left the payroll taxes intact, then I could see your point. If not, and the prohibition against any payroll tax is still in place, then I think you are very wrong.

The current tax system allows the elitists in Washington to "adjust" society at whim (and usually with no more reason than a whim) by giving breaks to those they like, and massively slamming those they don't. The Fair Tax eliminates that ability, which is the principle reason it has not yet succeeded - Washington elitists don't want to lose their ability to "correct" society towards their utopian fantasies.

The very thing you seem to oppose most - “A POWER OVER A MAN’s SUBSISTENCE AMOUNTS TO A POWER OVER HIS WILL”? - is what we have NOW. The Fair Tax takes away the feds power over man's subsistence. As it stands now, if some Washington tree-hugger wants it, they can suddenly enact a massive 300% tax on fast food. It would be "for your own good" of course. But adjusting society is NOT an allowed purpose of government. With the Fair Tax in place, no such "societal adjustment" taxes can happen. The feds would be powerless and society would be free from utopian elitist distortions for the first time in almost 100 years.

And THIS you call Marxist? Obviously, you don't know what Marxism really IS!! Obama's war on the rich - that's Marxist. Telling the poor that all of their problems are purposely caused by some other guy who built a business and got rich - THAT's Marxist. The American way is to hold that business owner up as an ideal, to show that ANYONE, from no matter what level, can raise him/herself to whatever level their talents and efforts take them.

Class envy leading to class warfare - the very hallmark of the Marxist ideal. Fully half of FDR's cabinet and favored consultants had been to Russia right after the Bolshevik Revolution to study the "wonders of the Marxist ideal". Almost immediately upon their return in the early 1920's they began preaching class envy and warfare, but were ignored by the populace. It wasn't until a recession hit and they made friends with the former Governor of NY (FDR) that they got anywhere.

In what way is the Fair Tax like the New Deal (New Screw I call it)? Nothing FDR and his communist cabinet did could have occurred under a Fair Tax, and the 1929 recession would have been over in 1931 instead of lasting the entire 1930's.

Your arguments give me the impression that you lack an understanding of the nature of power, and of money. I hope I am wrong, but the things you say make me wonder.

pjw2pjw said...

I believe what we all need to realize is that "taxes" should only be used to "support" the government.

Our taxes are NOT being used to just support the government because they have expropriated our hard earned money and have given to other people (read "wealth redistribution") and special interest groups.

This is flat out "robbery", "extortion" and puts us in "slavery" to nanny government.

That is why the government (District of Criminals) is corrupt and is salivating at every chance to take, take, take - just like a leech.

The only way to stop a leech is to kill it! You are a sovereign in the United States of America and by your own choice you can divorce yourself from these leeches.

Check out famguardian.org to find out how.

To liberty!

Gregg said...

Rose,

The fair tax does expand dependency to all citizens through its "pre-bate". How can a person who call themselves conservative sign on to this plan? It starts with sending out checks from the govt. I wouldn't call it marxist, but it is wrong. It sets a precedent that progressives will use to damage the Union far worse that income tax.

We do need to eliminate all taxes on payroll, so a consumption tax is necessary. A superior tax system satisfying Adam Smith's four tenets of taxation is found here:

Transfer Tax - a consumption tax eliminating payroll taxes.

Gregg

tmessimer said...

After reading the analysis and proposal on mifairtax.org, I am surprised to see the tax being applied to the sale of a home (a $100K home would now net the owner $83,250 after commissions and tax, without closing costs – this in it self could raise the cost of housing. If I sell my house I could be upside down after the tax), gambling, home rental, prescription drugs, food, property improvements and Lord knows what else. This is all beginning to make sense now after seeing the MFTA Directors Distribution. It’s loaded with liberal progressives – many of whom are directly responsible for our countries economic decline.

Ed Connor said...

tmessimer-
The Fairtax only applies to the sale of a new home and only to the final buyer. There is no tax embedded in the cost of subcontractors or materials that go into the home. If your home is already built and the embedded tax structure has already been applied then your new home would be exempt to avoid double taxing. THis is classed as inventory and applied to manufactured goods as well. It will take a year or two to work all the inventory out of the system after the Fairtax is passed to make sure there is no double taxng.Hope this ecplanation helps.
bhagwan

Grant said...

The FairTax will be the largest tranfer of power from the Government to the People in the history of this Nation. How is that Marxist?

Our Free Market System will explode with jobs for all. How is that Marist?

Everyone will be able to go to college 40% cheaper and empower thier own lives. True Opportunity for All Americans. How is that Marist?

Please read the books by Congressmen Linder and learn the truth. The FairTax is True Tax Reform that will Save America!

Rose said...

Let me see Grant. The UnFairTax will be the largest transfer of power TO the Federal Government in the history of this nation because:

It makes an makes and illegal head tax legal. It transfers a Corporate Excise Tax into a consumption tax and lets Corporations become tax exempt.

Grant, I think you need to go back and study the Constitution and pay attention to the clauses that talk about DIRECT and INDIRECT taxation.