Raising the debt ceiling: Look at the big picture

Rep. Eric Cantor leads talks to raise the debt ceiling.

Republican negotiators have walked out of talks to increase the debt ceiling. Why? Let me summarize: Democrats don’t want to cut spending, and Republicans don’t want to raise taxes. To this point, some cuts have been agreed on, but no tax increases are being considered by the Republicans.

These talks are taking place because the debt ceiling needs to be raised in order to avoid a bond default on August 2nd. Ideally, both sides would develop some common sense and use this as an opportunity to set the budget straight, to truly fix it, rather than just make temporary repairs. » read more

Senator Lugar explains the Fair Tax

To me, there’s nothing worse than having taxes taken out of your income before you even receive it. Fortunately, there’s a movement to pass the Fair Tax. Check out the video above to learn more.

If Obama wants a VAT, he needs to eliminate the income tax

Barack Obama has suggested that he is open to instituting a VAT (Value Added Tax) in the United States. If you’re not familiar with a VAT, it essentially taxes a product at each level of production as it moves from a raw material to a finished product. Not surprisingly, the VAT has been used in Europe for years.

I’d be open to considering a VAT if it replaced the income tax and capital gains tax. At all levels of government, ways are found to add new taxes and fees to separate citizens from their money in a myriad of ways. Then, we hear about small, almost inconsequential tax increases that we will hardly notice. Of course, we end up enduring a series of tax and fee increases that can add up to substantial amounts. That’s why any talk of adding a VAT would have to at the very least include the elimination of the income tax. Including the capital gains tax would further reduce the burden and simplify the tax code. We don’t need yet another way of spreading our taxation around. Of course, I wouldn’t count on this happening. » read more

Don’t cut taxes, eliminate them

We need to eliminate taxes. At first glance, you might think this is a ridiculous statement. After all, how do you eliminate taxes without compromising necessary government services? Government bureaucracy can be excessive and wasteful, but there are necessary services and functions that would need to be preserved. Therefore, you don’t eliminate all taxes, you eliminate most taxes.

As citizens, one of the big problems we face is excessive taxation. If you think about it, these taxes and fees come from a myriad of places and can be tough to follow. You might have heard local or state politicians brag when they “cut” taxes. What they didn’t tell you is that they reduced one tax, but likely increased a few other taxes and fees. Sure, you won’t be paying as much in one particular tax, but make no mistake, you will pay. » read more