Fair tax a path away from financial ruin

By Nicholas Gartner, Henderson

Sunday, June 21, 2015 | 2 a.m.

How much do you think you pay in federal income taxes?

I would bet the majority do not really know. Let me use a loaf of bread to prove my point.

The farmer who grows the wheat pays income taxes and passes them along in the form of higher prices. The jobber or wholesaler who buys the wheat has to pay taxes, as well, so they raise the price to cover. The miller who buys the wheat has to pay, as well, so they raise the price. We have not even covered the trucking companies, bakeries or retailers. The point is that a $2 loaf of bread only costs about $1.25 before income taxes are included.

I bring this up because the income tax, while raising prices on everything made in America and cutting wages for all, does not even pay the bills, as witnessed by the $120 trillion in debt and unfunded liabilities the federal government has acquired.

If we replaced the income taxes with the fair tax, all this would change dramatically. That loaf of bread would cost $1.50 and you would have more money to buy it. Then talk about other manufactured products made in America and it gets really interesting. Take a car made in America compared with a car made overseas. The American-made car would cost 35 percent less than it does today without affecting the profit margin built into the price. On the other hand, a car made overseas could not match the price reduction because there are no federal income taxes included in the current price. These principles would allow American manufacturers to gain market share and return America to being a net exporter instead of a net importer. This means more expansion and more jobs.

Of course, the lobbyists in Washington, D.C., would no longer have a hammer to beat our elected and appointed officials over the head with, but the American people would be in fat city.

This is in no way a partisan issue; it is about our nation’s survival and our children’s future. The time has come to force our government’s attention away from elections and back to what is right for our nation. There is no better way to help our poor than to give them employment opportunities that include better wages and benefits. The trap of welfare and government dependence would be broken and everyone would benefit with more income, liberty and freedom.

Imagine what would happen if Ford Motor Co. built a new factory in Baltimore. Construction jobs, then jobs making things at good wages and benefits to protect workers’ families. I know the Affordable Care Act was supposed to do this, but the ACA will never promote economic expansion and the jobs our fellow citizens so desperately need.

Join me and others and support repealing the 16th Amendment and adopting the fair tax. We do not have much time; our nation is running headlong into financial ruin.