Thread: Evans-Pritchard: Private Credit Market Collapsing

Evans-Pritchard: Private Credit Market Collapsing

Monday, October 5, 2009 4:46 PM

By: Gene J. Koprowski

Private credit is contracting in Europe and in the United States, writes business journalist Ambrose Evans-Pritchard.

Writing in U.K.’s The Daily Telegraph, Evans-Pritchard states that M3 money data is “flashing early warning signals of a deflation crisis next yearâ€

I think we need to pass the FairTax which eliminates all income-based taxes, income, capital gains, interest, dividend, estate, payroll and does so for both corporations, businesses and individuals and replaces them with a national retail sales tax of 23% and has a Rebate that exempts all spending up to the poverty-line based on the family consumption allowance.

Since businesses aren't paying any tax, their prices will be dropped to offset the FairTax so we'll see little to no increase in prices after the FairTax is added. In addition since businesses will have all their earnings to work with, they'll pay better wages and offer more employee-benefits because they can afford to do so. Individuals will have much more expendable income to pay their bills, meet their mortgage obligations, purchase health insurance if they don't work for a company that offers i, and save.

The FairTax also calls for the repeal of the 16th Amendment within 7 years of its passage, eliminates the IRS, eliminates all income reporting, eliminates all tax returns except for the retail businesses who collect the tax and are paid a fee for doing so.

It will jump start the economy because for example a family of 4 earning between $50k and $60k a year will have around $16,440 more net expendable income under the FairTax. As the economy improves, so do revenues for the government which will a) stop this deficit spending b) start to pay down the debt and c) result in reductions in the tax rate.

The FairTax also funds social security and medicare, 8.09% of the FairTax is earmarked for social security and medicare and can't be used for anything else. The other 14.91% is sent to General Revenue.

The FairTax also gives the power of the purse strings back to the people. When you're happy you spend, when you're not, you don't. Our Congresscritters will get the message every month when the states who collect the FairTax from their retail businesses report the total and send the money into the Feds. Every month we'll be able to see how much we collected in FairTax by state so it will help Americans to know every month whether our stupid government is over-spending and we can complain it every month until they get the message.

Finally, because net expendable income will increase for individuals and because businesses will be more profitable, there will be more production of goods in our country because it's more cost-effective to produce here with the FairTax, so not only will Americans have more net expendable income from their wages, they will have many more and better job opportunities which means a great deal of the entitlement spending for unemployment, welfare, MediCaid, food stamps, etc., will reduce automatically because fewer people will need it and qualify for it.

Also, the FairTax Monthly Rebate is only available to US Citizens and Legal Immigrants.



www.fairtax.org