From Don B.

Dr. Pryce,

I would like to hear more about the economics of eliminating the income tax.  Please forward the numbers.

Thank you.

Don,

Great question and thanks!  This has been a topic most politicians won't touch.  It seems complicated, but in truth makes complete sense. What I am referring to is a consumption tax.  The model I like the best is the Fair Tax.  Instead of taxing what goes into our economy, we tax what goes out of it. 

People have said the fair tax will increase their grocery bill by 23%.  This is simply not the case. A Harvard University study showed that a there is currently a 22% embedded tax on every good we purchase.  With simple math, you can see that that would mean that prices would be 1% higher.  But as it is written and proposed, all of your capital gains taxes will be eliminated.  

People oppose this plan for a number of reasons but the two most dominant are:

1.) Large corporations will no longer enjoy congressional protection that they receive from their lobbyist's work. 

2.)  People who love spending and pork don't want the American public to know the cost of government. Even though the lower and middle classes will spend less in taxes, they'll see on their receipts how much they are giving to keep congress fed. With the income tax in place, the average citizen doesn't keep a close eye on what is taken out.

I invite people to use this calendar below, take a look for yourself how much money this could additionally put into your pocket.  And as it is revenue neutral, the Federal Government receives as much now as they will under this plan.

http://www.fairtax.org/site/PageServer?pagename=calculator

Don, thanks again for the question. Hope this helps. 

Sincerely,

MLP

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Dustin M.

Will you help freeze government spending and help cut the size of federal government, will you downsize the federal government responsibilities back to national security and protecting civil rights through the justice system?  Will you help get the federal regulations out of our daily lives?

Dustin,
             
If we don't stop our reckless spending in this time of recession and bloated government, then the country as we know it will implode on itself. I, for the life of me, cannot understand why people don't see this.  If a person overspends themselves, they file bankruptcy.  If a business makes bad financial decisions and overspends, they collapse. No one has yet convinced me what makes a government any different.

I would like to see legislation passed that would make every amendment to a bill be germane to the original intent of the bill. 

This is why we need people in office who are not career politicians.  Congress loves spending money they don't have. The Consumption tax will literally solve the nation's fiscal problems.  The time has come to try something new.

Best,
MLP