In The News
Cut Taxes to Stimulate Economy
We have great news for FairTax followers.
By DAVID H. HUNTER
Our congressional and executive leaders inform us the proposed "economic stimulus" legislation will not create its intended effect immediately, and that things could get worse before they get better. This legislation is heavy on infrastructure spending, which requires some significant lead time to become operational, with lesser attention to tax reductions.
Alternatively, Congressman Louie Gohmert, R-Texas, reinforced by the findings of economists Arthur B. Laffer and Stephen Moore and investment adviser Peter Tanous in their new book "The End of Prosperity," proposes an extended moratorium on the collection of payroll income and/or FICA taxes as a relatively faster technique to pump liquidity into our economy.
This approach would provide every taxpayer with an immediate "pay raise" to apply to his or her perception of what is required to stimulate the economy. The question is whether our political and economic "elite" or 100-million-plus taxpayers know best how to do what is necessary.
A potential downside, as perceived by a number of politicians, is that when the moratorium expires, taxpayers will have been reminded sharply of just how much tax regularly has been withheld from their paychecks.
It might be useful if we taxpayers and voters contemplate this issue and inform our congressional representatives of our views.