The Truth About The Economic Stimulus Package

What a way to buy votes.

With the threat of a recession looming in the near future, President Bush and Congress agreed to an economic stimulus package of "tax rebates" for lower to middle class households.

People eligible would get anywhere from $300-$1200 in the hope that they will spend the money and restore the lost momentum in the U.S. economy.

The $150 billion package would also give businesses $50 billion in tax incentives.

The normally super-slow federal government displayed tremendous speed in developing this package, which proves that when it comes to buying votes, both parties can spend recklessly and without regard for sound economic principles.

Many of the recipients do not pay taxes, so to call it a "tax rebate" is foolish. It is really a welfare check.

No word yet on where the money for this package comes from.

It would have been better to just tell everyone that does pay taxes to deduct the allotted rebate from their next payment to the IRS, but that wouldn't buy as many votes for either party.

Better yet, the best way to stimulate the economy would be to pass H.R. 25, also known as the FairTax. The FairTax would unleash the economic power of individuals, small businesses, and large corporations.

With the FairTax, every person with a job or business pays no income tax, so they get a full paycheck instead of having deductions taken from their pay and sent to the government agencies like the IRS and Social Security Administration.

The income tax is then replaced with a national sales tax of about 23%, which replaces the embedded taxes that are found in every product or service.

The result is that the prices of products and services remains virtually unchanged while reducing the size of government, getting the IRS out of our lives, and giving the poorest of Americans a real economic boost.

The Truth About Income Taxes

One thing you will constantly hear from liberals is that the rich people in America don't pay their fair share of income taxes while the middle class and "working poor" shoulder a larger share of the tax burden in our country.

In the 2008 presidential race, the Democrats are promising to repeal the "Bush tax cuts for the rich". What they are referring to are the cuts in the rate of income taxes that occurred during President Bush's first administration, which appeared to reduce the amount of tax paid by the richest Americans.

Income taxes are taxes that individuals pay to the government based on the money (income) that they earn, whether from a job or from the profits of their business. It may also include income from pensions, social security, interest earned on investments, and other income sources.

But how much do the richest of Americans pay in taxes compared to the average person? Are the liberals and Democrats right, or are they using class envy to gain political power?

The truth is that the richest 1% of Americans pay more than 39.38% of the total income taxes, even though they only earn 18% of the income. Since President Bush took office, the top 1% of earners have gone from paying 37.42% to 39.38%, carrying more of the tax burden than ever.

In fact, the top 50% of income earners actually pay 96.93% of the total income tax burden in our country. (Click here to see the charts from the IRS)

That means that the bottom 50% pay only 3.7% of the total income tax burden.

Since the poor pay no income taxes*, why do liberals lie about it to the people?

First of all, they know that it's human nature for people who have less to be jealous of those who have more. Whether it's a nicer skateboard or a bigger house or a new car, children and adults usually want bigger or better things and can become jealous of people who have those bigger and better things.

The same thing happens with money. People with less money are often jealous of people with more money. Because they make less money, they feel that people who they consider rich should pay more money than them in taxes.

After all, if the rich have so much money, they can afford to give more of it to the government, right?

This kind of taxation, where the more you earn, the higher percentage you pay in taxes, is called progressive taxation. Progressive taxation is one of the foundations of communism, socialism and Marxism.

Unfortunately, our American economic system has been infected with this kind of Marxism: progressive taxation, the welfare system, food stamp programs, Social Security and Medicare; and now the liberals are proposing some form of universal health care, which is socialized medicine.

People who are successful through hard work and smart money management are punished by having more of their money confiscated by the government (taxes), while those who don't work and don't achieve are rewarded with government freebies at the expense of those who do.

The true power of government is it's ability to take people's money away from them and give it to someone who will vote for them. Liberals use this power to buy the votes of the poor, who are essentially voting themselves government benefits when they put liberals and Democrats in public office.

Only by educating the public and using the power of the vote can we reverse this trend.

First, people need to learn that by hard work, smart money management, and better education, they can achieve financial success without the help of government.

Next, we need to make sure that conservative political candidates who understand and promote the free market, individual liberty and responsibility, and smaller, less intrusive government get our support and votes.

* Even though the poorest people may have income tax deductions from their paychecks during the year, the Earned Income Credit and other credits gives them that money and more back during tax season, which amounts to welfare.

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Robertson's Endorsement of Rudy Boosted Mike Huckabee

The best thing that Pat Robertson did for Mike Huckabee was to endorse Rudy Giuliani. Look at the poll numbers: Huckabee started a meteoric rise right after the Robertson endorsement.

Robertson's surprising move was so shocking to the evangelical community that they immediately looked for the candidate with the best Christian conservative values and settled on the only choice, Mike Huckabee.

Of course, the primary issue to most Christian conservatives is the abortion debate.

Robertson's endorsement of Giuliani shocked the religious right into realizing that their hard fought victories secured through Bush's two presidential terms and right-ward swing of the Supreme Court were now in danger.

Mike Huckabee, a former Baptist minister, is the only viable candidate whose pro-life record is beyond impeachment.

Thus, the Christian conservatives responded with one of the greatest grass-roots efforts in political history and propelled Huckabee into the top tier of the Republican presidential hopefuls and eventually into a competitive position nationally.

Add to this a persuasive campaign to push the Fair Tax, a sterling record as a Second Amendment believer, and a commitment to win the war on Islamic terrorism, and you have the most natural candidate for not only the right wing, but also for those of the libertarian mindset.

Interestingly, the blue-blood Republicans are lashing back at Huckabee because they fear a Christian conservative take over of their party.

Robert Novak has been especially vicious, not only taking swipes at Huckabee, but at the Christian right also: "Huckabee's surge is driven by the evangelical Christian vote within the Republican Party -- highlighting the risk the party undertook by embracing this voting bloc that is not necessarily a limited-government constituency."

How someone who is a proponent of the Fair Tax and wants to abolish the IRS, as Huckabee does, can be a "big government" guy and opponent of the "free-market line" as Novak contends is beyond belief. Dick Morris even wrote a column soon after titled "Mike Huckabee Is A Fiscal Conservative" dispelling some of the smears being perpetrated by Huckabee's detractors such as Novak and Ann Coulter.

Fair Tax supporters know that the Fair Tax will inherently limit the power of the Federal government just by nature of it's structure. The true power of the free market will be unleashed in the most powerful way since this nation's founding when people get their full paycheck and decide how much they are going to pay in taxes.

The truth is that Novak and his ilk don't really trust the free market and relish the control the government has through tax legislation and the power of the lobbyists on K Street. Thus their opposition to the most important legislation sitting in Congress today.

Despite their efforts, Robertson and Novak prove to be part of the old guard that has lost it's vision and sense of proportion.

The Christian right and the Fair Taxers will continue to fight for their underdog candidate and leave dinosaurs like Pat Robertson and Robert Novak in the past where they belong.

Neal Boortz Explains the Fair Tax

The Fair Tax is a hot issue in the 2008 Presidential campaign and is part of the reason that Mike Huckabee has gained so much attention and momentum in recent months.

Unfortunately, some old blue-blood Republicans are attacking the Fair Tax, basing their opinion on bad data or outright lies.

Neal Boortz offers a short explanation of how the Fair Tax works and will restore our nations economy:

Last Thursday Townhall contributor Hank Adler published a column on this website entitled “A Hard Look At The Fair Tax (sic)”. Almost immediately the emails started pouring into my show – literally by the hundreds – urging me to post a response to Adler’s rather stinging critique of the FairTax.

Since Congressman John Linder, the author of H.R. 25, The FairTax Act, and I wrote “The FairTax Book” in 2005 we’ve seen an unprecedented and ever-growing nationwide interest in this tax reform idea. Let’s face it, you have to be doing something to capture the imagination of the American people to have a book on taxes debut No. 1 on The New York Times Bestsellers List. There are some, though not in what we call the mainstream media, who think that Governor Mike Huckabee’s embrace of The FairTax is an important element to his rise in the GOP presidential sweepstakes.

Read the rest of the article here...