Wednesday, September 30, 2009

Michigan Fair Tax OR is it really Marxism!

I took this off the Fair Tax web site. I think everyone should read this before making up your mind to support this so called Fair Tax. For me, any time the government want's to control the amount I can spend on food or medicine, it's called Marxism. What reading the Amendment reveals is you still must pay county property tax (the larger portion) and you still pay City Income Taxes on top of the 9.75% sales or Consumption Tax. It also makes services taxable that aren't taxed now.

http://www.mifairtax.org/resrcs/MI_Fair_Tax_Proposal_Proposed_language.pdf

A PROPOSAL TO AMEND THE MICHIGAN CONSTITUTION BY AMENDING SECTIONS 3, 7, 8, 10, and 11 OF ARTICLE IX, AND BY ADDING SECTIONS 43, 44, 45, 46, AND 47 TO ARTICLE IX. THE AMENDMENT IS BRIEFLY SUMMARIZED AS FOLLOWS: The Michigan Fair Tax Proposal would amend the Constitution of the State of Michigan to eliminate the Michigan Income Tax of 4.35% and the Michigan Business Tax and replaces those taxes with a 9.75% sales tax on all consumer purchases of goods and services, but does not tax business to business transactions. No other statewide tax could be restored, enacted, or the sales tax increased without a vote of the people. The state shall reimburse to every Michigan citizen's household an amount based on the Federal Poverty Level Guidelines. This proposal would constitutionally guarantee Revenue Sharing for counties, townships, cities, and villages.

The MI FairTax:
Makes sure everyone pays their fair share
Allows you to keep your entire pay check free of state taxes
Un-taxes the poor with a rebate on the necessities of life
Stimulates investment, economic growth and job creation

So according to this Amendment and the Federal Poverty Level Guidelines, the state will dictate how much we are allowed to spend on food and medication per month and we will be taxed for anything over that amount.

What it doesn't do is cut spending or reduce the size of government which is the reason the state can't balance the budget. Does this Fair Tax really sound like it will help the small business or the people of this state?

6 comments:

Anonymous said...

Here is the big reality check:

Collective government (Local and Federal) now brings in more gross income (Tax, Investment, Enterprise) than the entire population.

As of 2007:

The #1 thing that needs to be understood up front is that you are dealing with a corporate machine for profit (fascist attorney state)and not government. A corporate machine expanding and fine tuned now for over 70 years.

What makes it worse is that as of now 80% running the show are attorneys.

Come 2007, collective local and federal government's gross income was about 14 trillion dollars. The gross income of the entire population in 2007 was about 10 trillion dollars. Subtract indirect and direct taxation of 5 trillion, the populations gross income "net after taxation" was about 5 trillion.

The sound bite conditioning the population is subjected to is very effective in keeping all looking in left field as the boys conduct business as usual in right.

Disclosure is taking place one bit at a time and in collective consciousness growing. Do a Google on the following two key words: government wealth

You will get 52 million hits and look at what the first hit is and the first video shown. Same on a Google for : CAFR

I personally am working on a two prong attack:

1. a new site I launched a few months back - http://TaxRetgirement.com (the remedy site)

2. a documentary I am getting ready to produce that will cover from A to Z, how we got here; where we are now; where things can go if direction is changed now for the implementation of the TRF (see point 1). I launched my first ChipIn money bomb for that project as can be seen on my CAFR1.com front page. When done I think it will be the most viewed documentary ever produced..

Walter - CAFR1.com

---------------------------

Daar said...

Hi Rose, I forwarded your posting to our State Director, Roger Buchholtz, because you and I have been over this, repeatedly. Roger said he was not able to post the comment, and asked me to do so. It follows below.

Grandma Rose,

I applaud your pursuit of liberty, but it appears you have some misconceptions about the MI FairTax. This income tax replacement plan is wholly consistent with the ideals of our Founders . . . not Karl Marx (who advocated the income tax system we now have, only more steeply graduated). Please let a fellow senior citizen, Grandpa Roger, help you understand the MI FairTax.

To limit the size and reach of government first requires that we have knowledge of the level of taxes we are now paying to support the government. This is the self-limiting restraint on the amount of government that our Founding Fathers intended . . . visibility of taxes. The MI FairTax accomplishes this to the maximum degree possible, as the MI FairTax/sales tax will appear on every sales receipt. When citizens are informed of their true tax burden they are better able to act to control their tax burden.

There is no limit on the amount citizens can spend on any item, food and medicine included; however, all taxes paid on any expenditures up to the poverty level for all Michigan households will be offset by a monthly prebate. This prebate, similar to today’s personal exemptions - only without the tax code that gives decisions over "who gets what" to politicians - is designed to protect poor / lower earners and causes the tax to be progressive. (Prebate explained (.pdf) )

The prebate eliminates the need for other tax exemptions and deductions that, under today’s tax system, brings about the buying and selling of tax favors that corrupts our representative form of government and causes the tax system to be unfair.

The idea that services are not taxed today is incorrect. Most people understand that when you tax a business the business treats the tax just like any other cost and passes the cost on to consumers in higher prices. (Taxing Services in Michigan (.pdf)) It is this dishonest practice of hiding taxes in prices that places Michigan, American labor, and business at a 20% competitive disadvantage with foreign competition. We simply can not compete in the global market place with our tax-inflated prices.

To try to include property taxes in the MI FairTax, at this time, would cause the tax rate to be too high, relative to other states, and hurt Michigan jobs and businesses. As drafted, the MI FairTax will remove “business” taxes from the cost of Michigan goods and services, so the after-tax cost to consumers will be about the same as it is today.

By removing Michigan business taxes from prices, the MI FairTax will give Michigan the most friendly tax environment in America! This will bring companies - and jobs - to Michigan. By eliminating the state income tax, the MI FairTax stops the practice of punishing productive behavior (work, savings, investing, etc.) and will make Michigan the best place to live and raise a family.

I encourage everyone to visit our website - mifairtax.org and do their own study on this issue. Under FairTax, just think . . . no more tax returns!

Rose, we appreciate your work for the cause of Liberty, and your efforts to inform Michigan residents of the threats to same. If you have any further questions about the MI FairTax, please write me, and let's get them answered so we don't inadvertently set back the cause of Liberty through mis-understandings.

- Roger

State Director (Volunteer),
Michigan FairTax Association
Roger.Buchholtz@mifairtax.org

shippwreck said...

Fairtax, whether it be the Michigan FAirtax or the National Fairtax HR25 /S296 is definitely not Marxist. It is however very comprehensive. It is designed only to replace income tax and make income tax to a consumption tax which then stops penalizing production. the best way to research fairtax that I have found is here. http://www.fairtax.org/site/PageServer?pagename=about_main

ctyankee said...

No Rose, the government is *not* dictating how much you can spend on anything. The FairTax uses the *laws* (real laws, not hooman[sic] crafted whims, regulations, and suggestions) of probability and statistics to pre-bate to you and everyone the *average* of taxes paid on the basic necessities of life.

If someone _chooses_ to buy lottery tickets and beer, then that is their choice. They'll pay no tax on the *amount* equal to the poverty level; the same untaxed amount as the pre-bate allows a wiser person who buys bread, meat, milk, clothing, transportation, shelter, etc. The value or worth is the same "dollar amount", the rest is judgment not regulation.

I applaud the MI effort to reduce the influence of government on the lives of its citizens. The only question is if the MI economy is large enough to fully reap the benefits...? The IRS is still a bigger influence, and a higher hurdle, as demonstrated by the MI 9.75% rate versus the larger 22% Federal rate of embedded taxation and overhead.

Please keep in mind that the FairTax is a means of collection, a superior and more transparent means -- that gives the citizens more control over government.

The issue of government spending is a separate issue and needs to be addressed on another forum. We all agree that spending is the culprit, and once spending is controlled the FairTax will *still* be a superior method to the income tax!

Best wishes,

The Light is Green!

RGeorgeDunn said...

"A heavy or progressive or graduated income tax is necessary for the proper development of Communism." - Karl Marx

Our Nation's founders first established a tax system based on a voluntary tax know as an indirect tax, a tax that citizens can choose to not pay by not participating.

The FairTax is an indirect tax. The MIchigan income tax is regresive and marxist, created in 1963 by Gov. Romney. Just like his dad Mitt Romney continues to push for government control by stopping and ignoring the National Fairtax which will take tax out of the domestic production sales price and equaly tax imports with our own manufacturing thus creating jobs, jobs, jobs, and if we put Michigan jobs first by adopting the MIFairTax we will be once again the most prosperous State in the USA.

About me said...

Do you have any idea what the dialectic of historical materialism means? or have you read anything written by Marx himself... your ignorance of political theory is only outdone by your complete lack of understanding of our nation's tax codes...the fact that 99% of Americans believe Marx was a socialist only reinforces the ignorance of our country to the world.

Sad....