Huckabee’s Vertical Politics Institute on the Fair Tax

 

Vertical Politics Institute

 I support the Fair Tax and believe enacting the Fair Tax would transform our sluggish economy.

First, if you will read the chapter in my book “Do the Right Thing” about the Fair Tax, you’ll not only have a clear understanding of what it is but how I ended up becoming an unflinching supporter and how the Fair Tax was developed.

It was not created by Congressman Linder or Neal Boortz, though they did co-author two wonderful books explaining it which I can recommend (after MY book, of course!)

It was the result of some prominent business leaders from several states meeting to discuss how to change what they saw as a very punitive tax system that was stifling our economy and making it increasingly more difficult to succeed in a global market.

These guys put up their own personal money (no government grants involved) and sought after and then contracted with a team of America’s top economists, which included a “Who’s Who” of leading economic thinkers from Harvard, Boston University, Stanford, MIT, and other top schools and business economists. That team was challenged to do a thorough study and determine the optimum way for the government to receive the funding it needed to operate in a way that would most empower the citizens at all levels to prosper and not punish them. The financiers of the project all thought that the team of economists would come back to them with a flat tax on income, much like the Steve Forbes proposal of a few years ago. What they received back was in fact a flat tax, but not on income, but on consumption. Their proposal, which by design was to be revenue neutral, is the genesis of the Fair Tax. There is over $20 million of academic and practical research behind it.

The biggest obstacle to its passage is mobilizing the political will to enact the Fair Tax and it is one of the reasons why I founded the Vertical Politics Institute (VPI).

Many armchair political quarterbacks like to speculate about whether I should personally back off support of the Fair Tax, don’t bother. I won’t. I’m convinced we could begin to work out of our economic nightmare if our political leaders had the guts to do something about the Fair Tax rather than create monster debts for our children with unconstitutional bailouts for private businesses.

This email is just the beginning of a long term discussion about a very important issue.

Look for my email around this time tomorrow discussing what the Fair Tax is and how you can help.

With deep gratitude,

Mike Huckabee

PS In February of 2008, during the heat of the campaign, I was asked about the Fair Tax at the Commonwealth Club of San Francisco. This links to an eight minute video of my answering questions on the issue. More food for thought.

To learn more about the issues the Vertical Politics Institute is supporting, please visit our website at www.verticalpoliticsinstitute.com.

Vertical Politics Institute

 

Yesterday, I emailed you about the Fair Tax to explain why I think the Fair Tax is an important piece to America’s economic future.

I also included a link to an eight minute video where I discuss my support of the Fair Tax.

Today, I would like to explain in greater detail what the Fair Tax is and offer you three ways you can help the Vertical Politics Institute (VPI) start a broader discussion about tax reform in this country. A discussion which I believe will lead America to conclude the Fair Tax is the best path forward.

First, what is the Fair Tax?

The Fair Tax Plan is a thoroughly researched national tax system carefully designed to replace all income and payroll taxes with a simple, transparent and fair national retail sales tax. The Fair Tax will eliminate all federal income and payroll taxes. It will do away with all personal federal, corporate federal, gift, estate, capital gains, alternative minimum, Social Security, Medicare, self-employment taxes.

The Fair Tax will replace the Internal Revenue Code with a progressive consumption tax. When consumption is taxed instead of citizen’s earnings, savings and investments, the economy functions much better because taxes are levied on what we take out of the economy as consumers instead of what we put into the economy as producers.

The Fair Tax eliminates all federal taxes on the poor and gives the middle class a dramatic tax break. Each American citizen will receive a monthly prebate that will reimburse us for taxes on purchases up to the poverty line, so that we’re not taxed on basic goods and necessities. Instead, Americans will only be taxed on what we decide to buy, not what we happen to earn. We won’t be taxed on what we choose to save or the interest those savings earn. And, the tax will apply only to new goods, so we can reduce our taxes further by buying a used car or computer.

The Fair Tax also isn’t intended to raise any more or less money for the federal government to spend – it is revenue neutral. However, it doe broaden the taxpayer base by taxing the $1.5 trillion a year annual underground economy, eliminating unfair tax loopholes for the wealthy and by making taxpayers of 12 million illegals as consumers. Under the Fair Tax nothing is withheld by the government from paychecks, the IRS is abolished and April 15th becomes just another spring day!

The Fair Tax is progressive, but it doesn’t punish the American people for their success as does the current system. Nor does it punish the old fashioned virtues of hard work and thrift. Instead it rewards and encourages them. Expert analysis of the Fair Tax have shown that it lowers the lifetime tax burden of all of us-single or married; working or retired; rich, poor, or middle class.

Furthermore, many experts believe the Fair Tax can help solve the current financial meltdown by:

1. Increasing take home pay which will allow distressed homeowners to stay in their homes and satisfy mortgage obligations.

2. Attracting an estimated $12-15 trillion of foreign investment into our economy and

3. Greatly benefiting “Made in America” products resulting in rapid job growth.

And just as importantly, all of these effects do not require huge taxpayer investments.

In the coming months we will read about the Obama administration’s massive expansion of government. An expansion fueled by deficit spending and more than likely higher tax burdens on American families. That is exactly the wrong reaction to the problems we face.

To counter this, I hope you will join me in promoting the Fair Tax. Here are three ways to help today:

1. Forward this email and yesterday’s email to your friends and family. If they are interested in what they read, encourage them to sign up for email updates from the Vertical Politics Institute here. If you are a blogger, you have my permission to reprint both emails on your blog. Encourage your readers to spread the word and sign up for email updates at www.verticalpoliticsinstitute.com.

2. If you can afford to, please become a sponsoring or sustaining member of the Vertical Politics Institute with your contribution of $25 or $100 today. You can learn more about the benefits of membership here.

3. Check back next week at www.verticalpoliticsinstitute.com to sign up as a volunteer in our efforts to promote the Fair Tax.

I hope you are finding these emails informative. Next week I plan on switching gears completely to discuss the environment and why it is important for conservatives.

With deep gratitude,

Mike Huckabee

P.S. You can help support the Fair Tax by promoting the Fair Tax to friends and family, contributing financially to the Vertical Politics Institute (learn about our membership opportunities here) and by signing up to be a volunteer very soon.

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