Fair Tax—a security issue?

I'm going to impose on Romeocat's generosity here and spend a wee tad of space plugging a book. One that I very strongly feel is an important book.

I have blogged at third world county off and on (here's the most recent) about an issue that might seem far from a national security issue, but which has national security ramifications often ignored: our current tax system.

I won't go into a lot of deatil here, but let me point you to some "lots smarter than I am" folks having an extended, on again/off again discussion over at Jerry Pournelle's place, Chaos Manor. This whole week's mail there has some good places to start in understanding a few of the underlying weaknesses of our economy (!), and plenty of links pointing to more. Search his site for more, or follow your nose on a Google hunt.

That said (and it's not much unless you go to Dr. Pournelle's site :-), the weaknesses in trade and manufacturing that are national security issues (as well as personal security issues... for your children and grandchildren!) that are picking up speed in the U.S. can almost all be slowed, averted or reversed by... the Fair Tax.

Basically, the Fair Tax (and here I'd encourage you to get The Fair Tax Book to get the details) would remove the biggest single millstone around our economic necks--both as a country and as individuals. Think: there is not one single solitary business in the country that pays corporate or business income taxes. Not one. So, where do those monies come from that corporations apparently do pay in taxes? From the end user of the goods and services they provide. This means that the goods and services YOU as a consumer buy include in the pre-sales-tax price the taxes the businesses and services must pay.

Hmph!

That cost to you is about 25% of the cost of the goods and services.

And it is a huge brake on the economy. Our businesses selling overseas must include those costs in their products. Result: higher prices, reduced competition against foreign markets. Many companies from foreign countries (think China's biggest trading partner is WallyWorld) selling goods to the U.S. don't have that price burden. Hence, they can more easily out-compete American companies and drive even the support structures for whole manufacturing classes offshore.

As a result, for example, more and more equipment for our armed forces is becoming foreign-manufactured equipment...

But it's even more. Listen to this correspondent at Pournelle's site:

"Any Great Power’s strength ultimately depends on its ability to project power. In an industrial age the ability to do that depend on industrial and financial independence and strength. The US is rapidly losing both of these key powers."

Let me simply urge you to bring the issue of these aspects of America's power at least to the back burner of your considerations, and to buy and read The Fair Tax Book. It is an important book. For more reasons than I have outlined here.

Again, thanks for letting me impose here, R'Cat. I really do think this is an issue—the Fair Tax—that should be getting a LOT more buzz. Please folks. Get the book. Heck, send one to each of your Congresscritters. Repeatedly ask them (well, their office) what they think of the proposal and why.

It is that important. Think ahead. Do it for your children and grandchildren.

Comments

[Romeocat]

David, darling, never an imposition! It's a subject near-and-dear to my heart (don't WANT the government wasting my money (or my daughter's financial future)!

Don't know yet how to fix this, but this certainly seems like it could be a workable solution... I obviously need to do a hell of a lot more research!

Thanks, brother!

-- R'cat