It is becoming harder and harder for Washington and the mainstream media to ignore the ripple effect the collapse of the housing bubble is having on the economy. Inflation is up, cost of food is up, oil and gold are up, foreclosures are up, unemployment is up, government spending is at record highs, its seems that the only thing down is the value of the dollar. The middle and lower classes are getting squeezed as prices jump and wages stay flat.
Though it is good that Washington is acknowledging the problem instead of sweeping it under the rug, I always get nervous at their ideas of solutions. A proper solution requires an honest, in-depth look at the root of the problem.
What the government needs to stop doing is taxing Americans literally out of house and home in the wake of the housing debacle. We should not take money from taxpayers to bail out bad businesses. At the same time, we need to make sure that America can get back to work by easing taxes and regulations on good businesses and allow them to function and prosper. Also there a lot of tax cuts and tax reforms we could be making to ease the burden on the American people.
I have many bills in Congress that address the high taxes Americans pay, but one in particular – my Tax-Free Tips Act – should be a no-brainer at a time like this. This legislation would exempt gratuities earned by service sector workers from income tax liability. A tip is a small gift and there is no contractual requirement to give it, yet if someone leaves a restaurant without tipping, the IRS will still estimate how much they should have been tipped and tax the waiter based on that, should they perform an audit. This is patently wrong.
People working these jobs are the backbone of our economy, and they often support a family or put themselves through school on this money. They are already taxed on their base wages through withholding. They should not be taxed on tips. We do not need to put this kind of pressure on our service workers.
To really fix the economy and get it back on track, though, a sea change, not a quick-fix attempt, is needed. I was very pleased and encouraged that on Friday the Wall Street Journal published my letter to the editor addressing some of our economic problems. The message is getting out because people are demanding answers. The American people are strong, resourceful, hard working and determined. Because of this we can get through these tough economic times, but our leaders need to understand how we got here in the first place. Continuing the same flawed policies that got us here will only prolong the agony.
http://www.house.gov/paul/tst/tst2008/tst030208.htm
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Found a good video interview a few months ago were the guy was talking about ending the income tax and replacing it with a 1% taxes on all good and services. Would tax everything, from big coperations producing and selling old to you buying a candy bar at the 7/11, 1% tax on all goods and services. Wish i could find it the video. If anyone is able to find the video can you post a link?
Comments
I really like what you said. It's absolutely true.
However, We knowing the truith, all of us, has'nt changed anything, ever.
The solutions and actions for solidarity, on just about every social human issue, aren't rocket science , to those of us who live it.
it's just, for any social system, IE Governtment , to reap the rewards for succesfull strategies of any kind, one must impliment them.
It doesn't pay well enough, to those who can never have, enough.
We didn't get here from a shipwreck, this is thousands of years in the making.
And all they really want,,,,, is more.
Thats why, it is, the way it is. Its the only excuse they havent used up. The truith always is.
if only he was a little more mainstream with other issues Id be for him. I cannot do a Ron Paul unless he came around to my side of the world view. nation wise, he would get my vote to overhaul the taxes and irs. unfortunately nothing else, at least not to actively defend my country via wiretaps and oversees spying shit. i like that stuff.
chips, dips chains & whips.
I don't know of a 1% tax, but I know of Mike Huckabee's flat 25% tax plan.
news.bbc.co.uk/2/hi/business/7217227.stm
The US economy, a $15 trillion giant which makes up 25% of the world economy, is in trouble, and could drag down world growth. The US central bank has cut interest rates aggressively and the US Congress is planning an economic stimulus package to prevent a recession.
(take a look at the dollar value chart, still loving the war folks? lol)
The dollor value always changes. Europeons think creating the euro is the best way to attack the dollar. While I am an investor, I don't really bother tracking the dollar value so who knows how it will come out. US companies should go up with increased sales to europe though. One real show stopper will be if Barack is elected president. raising taxes/spending and "free" healthcare will kill and economy. While getting hammered at home, it will be nothing but blue skies on the tube.
The 25% flat tax is a little better then the income tax, but not by much. It would destroy the middle class. The middle class spends the most money for how much they make. Give them money and they spend it, usually end up spending more then they actually have. Add on a 25% sales tax and it's puting a huge impact on how much people can buy. They will end up spending less and the amount of money changing hands and how offen it changes hangs goes down.