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A Stimulative Federal Spending Cut

Monday, September 8, 2008 | N/A (dixon757) Is this Spam?

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The number one problem with our republic is that it has become a democratic tyranny which contravenes much of the Constitution. Literally thousands of special handouts to special interests (mostly but not entirely Democrat constituencies) rob us daily. Following Federal legally authorized powers, only national defense and international relations are legit. And of course regulation of interstate commerce, which meant only in the case of tariffs between states.

With that in mind, why should we tolerate 18% spending? How about 16%? The effect of this 2% left in the productive private economy rather than the unproductive federal bureaucracy would be more efficient money use with lasting job creation, higher productivity, lower interst rates, and lower inflation. Keynes would not approve, but he was wrong about government making more efficient investment than private enterprise.

Taxes are an entirely separate issue. although taxation inevitably matches spending (considering that fiat money creation or deficit financing is simply a form of taxation). The Federal tax code is used as a vast nightmarish complex of conflicting provisions to reward specific constituencies. The best thing would be to replace it with a consumption tax, like the Fair Tax. This would have many benefits; more competitive internationally, encourage investment, minimal compliance cost.

Add this all up; a lower federal piece of the economy along with more efficient taxation equals greater prosperity and freedom for all.

Next year we will talk about 14% spending.



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  1. TheNightFly (12 weeks ago) Is this Spam?

    We, the people, are responsible for keeping the government in check and their are two important rights we must have in order to do this. The first is the right to vote, however, it's never easy to trust the accuracy of the results or the integrity of the candidates. That's precisely why it is absolutely critical that we also have the right to withhold our financial support from government if and when our elected leaders fail to do their jobs properly. Without these basic checks by the people, there is no accountability in government.



    That is why I have always been opposed to income taxes because they directly undermine the most basic and essential check on government. Of course, I don't support the flat tax. The fact that it's an income tax makes in inherently unacceptable.



    I don't support the VAT either because it is a business tax which merely adds to the cost of producing goods and services and hides the tax burden from the real tax payer. Consumers ultimately pay all taxes so, it's completely unnecessary and deceptive. The VAT is also designed to work in combination with a low rate flat income tax so, we really need to steer clear of both of them because, if Congress passes one, the other is sure to follow.



    I support the Fair tax because it is the only way the government can tax the people without taxing production or income. It doesn't eliminate federal revenue but it does give the people some control over how much tax they pay and that is the critical check the people have been missing for the last ninety five years.
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