In another development highlighting the need for the Fair Tax, Congressman Dennis Kucinich, a Democrat from Ohio, excoriated the Treasury Department last week for failing to adequately trace banks’ use of taxpayer bailout money. The criticism included a $8 billion Citigroup Inc. loan to Dubai, a $7 billion Bank of America investment in China Construction Bank Corp., and a $1 billion investment in India by J.P. Morgan. Although the transactions are not illegal, Kucinich criticized the channeling of taxpayer money to foreign governments rather than the domestic economy.
If we had the Fair Tax, Kucinich could stop complaining, and it would be unnecessary to hit the banks over the head with a federal billy club.
The Fair Tax is a bill in Congress – H.R. 25 – to replace payroll, estate, gift and generation-skipping taxes, as well as corporate and individual income taxes. The Fair Tax replaces these taxes with a progressive national retail consumption tax. By un-taxing business and investment in a way that remains fair to low-income individuals, the Fair Tax, overnight, makes the United States the tax haven of the world.
Employed Americans are stimulated to spend their immediate increases in income (cash) and some several trillions of cash offshore returns to be invested in our economy. This beats all to hell the idea of borrowing and printing trillions to stimulate the economy and laying the burden of debt and inflation on generations that follow us.
The American way has always been to sacrifice now for the future of our children. Congress would have us avoid present sacrifice and let our children suffer for it later.
John Hanson
Bristol, Va.
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