FairTax Supporters Rejoice!

So I check my email inbox this morning to find an email from The Americans for Fair Taxation group pleading FairTax supporters to send letters of dissatisfaction of the Value Added Tax (VAT) making the rounds up at the Missouri house. I decided to answer the plea, since I really had nothing else to do at the time; class hasn’t started yet. Luckily, the letter was pre-written, all it needed was a little personalization and it was off! In retrospect, I should have told those who got the letter that my family probably doesn’t feel like hiking the price of our product due to legislation, but; that’s in the past now.

This afternoon, I go to check my inbox; and lo and behold; I got a letter back from Mr. Roy Blunt! It wreaks of form letter, but it will be quoted in its entirety. Mr. Blunt, if you would like this letter retracted, please e-mail wearechangebranson@gmail.com and I will pull it down:

Dear Brandon:

Thank you for contacting me regarding a value added tax. I appreciate the opportunity to respond to your concerns.

On April 13, 2010, Congressman Todd Tiahrt introduced H. Res. 1245. This resolution would express the sense to the House of Representatives that the Value Added Tax is a massive tax increase that would cripple families on fixed income and only further push back America ‘s economic recovery. Currently, this measure is under consideration in the House Committee on Ways and Means.

Should H. Res. 1245 come before the House of Representatives for a vote, I will keep your thoughts in mind. Again, thank you for contacting me. I look forward to hearing from you in the future.

Sincere regards,

Roy Blunt
Member of Congress

Thank you for your kind words and the crucial info Congressman. Here’s the resolution, provided by GovTrack.us. Every sentence in that resolution is pure truth. The nature of a VAT will increase the cost of products just a little to start off with, but the insatiable financial appetite of the government will up that “little bit” rather quickly. A VAT is not a national sales tax, nor is it the solution to a growing deficit. An answer is to cut spending, not add new taxes. And don’t think that they will repeal the income tax if this gets passed. Remember, it’s an added tax. The worst thing is, it’s supported by the Jesus of the Tea Parties himself, Glenn Beck. The best chance at tax reform is what is in the first link, the FairTax.

Okay, note that I said an answer is to cut spending in government. The answer is to overhaul the whole current financial situation. Our fiat paper currency setup allows for almost unnatural and certainly historic swings in deficit and revenue. Note that we talk trillions like it’s nothing now, and the time we take to talk quadrillions like it’s nothing will be less compared to the time it took to go from billions to trillions. The conclusion I arrived at while researching fractional reserve banking (the basis of the Fed) is; our economy is sustained totally on the fact that a mass of people won’t make a mass withdraw. That’s it! If they did, the percentage of new currency introduced into the economy would be smaller, and there would be more reasonable swings between positive revenue and a deficit. The money masters have figured out that they can safely issue 9x the currency they currently had (PDF link). In other words, if someone deposited $10,000; the bank could issue $90,000 in new money. So now that our currency is effectively backed by nothing, it’s almost worthless. Since it’s almost worthless, you need more to sustain the same level of activity as a point in the past, and you’d certainly need more if you wish to expand government, and the act of lending (read: printing) more further devalues our money, which layers this snowball more and more until it becomes unsustainable. Dr. Ron Paul make multiple points on how we dodged these issues up until now in his book End the Fed, some recommended reading by me. So, when it breaks, or when the bubble bursts, it’s going to burst hard. And what will come of it? Hopefully those in the know and in control of the situation at the time will turn to a commodity-based economy, maybe gold.