In face of government spending, American tax revolt is necessary 

We are speeding toward an economic cliff because our government can’t practice restraint.

We spend so much more than we take in because politicians at every level use the public treasury to win elections. The public mostly accepts lavish promises of more and more federal spending because the cost of government has been so effectively divorced from what actually comes out of our paychecks.

Ask almost anyone how they did on their taxes and you’re likely to hear a happy exclamation that the taxpayer got a little money back! But ask the same person how much they paid the government over the year in withheld income and payroll taxes and you’ll often see a blank look.

The engineered divorce in perception between the fruits of our labors and spending by elected officials has resulted in a national debt that equals more than $500,000 per American household.

As my father, Ronald Reagan, once said, “Our federal tax system is, in short, utterly impossible, utterly unjust and completely counterproductive, it reeks with injustice and is fundamentally un-American ... it has earned a rebellion and it’s time we rebelled.”

I agree, and that’s why I am enthusiastically now helping with pending legislation to replace the income tax entirely with a fair, progressive and honest national consumption tax aptly called the FairTax. It ends all federal taxes on income and earnings, and replaces every penny now raised with a 23 percent tax on personal consumption at the point of final retail sale.
I have become convinced of two things: that FairTax is the best way to create a new era of healthy American economic growth, and that my father would have been a strong proponent of the FairTax as a tax reform/replacement model had it existed during his time.

Among many virtues, like the effect the FairTax will have on bringing trillions of private, job-producing investment dollars into our economy, the FairTax restores critically needed transparency to government spending.

Workers take home paychecks free of federal withholding and FICA taxes under the FairTax. Congressional corruption of the tax code disappears because there are no exemptions that can be expanded and sold for profit and power by tax-writing committees to the favored few.

When you consider that fat cats, illegal immigrants and the underground economy all become part of the tax base, as consumers, it is easy to see that we can all pay less of a share for government. It’s just a better, more honest and simple way to collect federal taxes, and one that makes April 15 just another day.

About The Author

Michael Reagan

Pin It

Speaking of...

Latest in Guest Columns

Sunday, Mar 18, 2018


Most Popular Stories

© 2018 The San Francisco Examiner

Website powered by Foundation