Reader disagrees withRep. Strickland on taxes
Recently a friend shared a letter with me that he received from Congressman Strickland. My friend asked the congressman to explain why he is not in support of the FairTax bill, House Resolution 25.
Mr. Strickland said, "Although a national sales tax may seem more simple than our current income tax system, in fact a national sales tax would be regressive, taxing lower-income families and individuals who must spend a greater percentage of their income on necessities at a higher rate than higher-income families. Our current tax rate is 'progressive,' meaning that it taxes lower income individuals and families at lower rates than higher income individuals and families. However, I certainly am in favor of simplifying our tax laws so that the vast majority of taxpayers can complete their own tax returns with confidence."
I respectfully disagree with Congressman Strickland's understanding of "regressive" and "progressive."
Because the FairTax will eliminate all income taxes, including corporate income taxes, costs will be reduced, and that will cause competition to drive prices down. All individuals will take home all of their paycheck.
This means we will have more money to spend on goods and services at lower prices. We will also receive a rebate check at the beginning of every month, which is designed to pay the taxes on spending for basic necessities up to the poverty level. That's progressive. This means that we pay no taxes on basic necessities, unlike the current system where we have to buy basic necessities with after-tax dollars. The current system is also regressive in the fact that if we train harder and work harder, so that we can earn more, then we are taxed more.
Mr. Strickland called it progressive when people paid higher tax rates when they had more earnings. I see it as regressive. Eliminating corporate income taxes will make America attractive for new businesses. Taxing corporations only raises prices. Corporations do not pay taxes. People pay taxes. After we have taxes taken from our paychecks, we have to buy items that have taxes hidden in the price. That's regressive. I hope that Mr. Strickland is interested in bringing jobs to Ohio.
Social Security withholding will also be eliminated and funded completely by the FairTax bill. The Social Security tax only taxes the first $90,000 of earnings. That's regressive. Based on Mr. Strickland's definition of progressive, social security should tax higher income earners at a higher rate, and it should tax all income and not stop at $90,000.
Lastly, "simplifying our tax laws so that taxpayers can complete their tax returns with confidence" is not progressive. The most progressive thing to do would be to eliminate tax returns all together and make April 15 just another day.
Redeploy troops in Iraqto the streets of Youngstown
Does anyone in power really care that the homicide rate in the city of Youngstown is among the highest in the nation and has been so for decades? In fact, this year's rate of murder in Youngstown is about the same as in Baghdad, arguably the most unsafe city in the world.
Let's solve two violent problems with one immediate policy change: Bring the troops home now, and redeploy them in the city of Youngstown to keep the peace.