There is a creeping tragedy in today’s political prognostication. It seems that instead of attempting to discover how best to grow ourselves out of this economic calamity we find ourselves in many are only interested as to where the next bailout will be applied. (It could also be here) It is a fascination that has consumed Europe and its politics culminating this Sunday in a Grecian election to decide that country’s future. It has pushed the Eurozone to its limits to no avail and here in the land of opportunity we look to which institution we shall remove from consequence, thus responsibility. For many in America the growth of student loan debt marks the next area in need of a government bailout. This permeates a very damaging misconception. One of the reasons the workforce is so strained and has seen a record number of people leave its rolls is because of intrusive government action. Requiring a bailout from the same government that is causing the problem is throwing good money after terrible policies. Money we literally cannot afford to throw. It need not be said that this recent interest in government bailouts has proven woefully ineffective. Ask Greece who has received two separate bailouts totaling 240 billion Euros, or an amount equal to nearly half of its debt. A delay of the inevitable is only that….a delay. Europe is now attempting to see if it is possible to buy freedom from consequence. They are slowly coming to the realization that effect surely follows cause, the same with gravity as it is with unwieldy entitlement societies.
Our efforts should focus on the policies that will grow us out of this constant economic gloom. We have experience malaise before in this country and it was the intrepid entrepreneurs of America that allowed us to experience “morning again”, we just needed leaders that understood government’s proper role. And in the economy that role is consigned to somewhere as far away as possible. The FairTax would be the proper first step to aid those struggling under a ballooning school debt crisis. There are a number of ways that the FairTax would attack this $1 trillion problem merely by changing the current tax code. First it must be noted that the surest bailout for these recent graduates is a job. To create these jobs it is imperative that we first create a climate most conducive for job creators; otherwise they will head to another location, which is the definition of competition. The FairTax will remove the suffocating regulation and oppressive taxes that hamper a company’s ability to compete here in America. Ripping away the 35% corporate tax would do that in a heartbeat. Creating jobs will provide opportunities to those entering the workforce today that are disheartened and provide hope for those who come after them that an education is not a wasted effort. Secondly the FairTax will ensure that workers will keep 100% of their paycheck. If debt is becoming such a concern they will have greater flexibility with their own money as to how it is spent. If the current tax code remains graduates will have to continue to watch every penny of their paycheck remainder after the government takes its share. Similar to how the mafia operates in neighborhoods they own. Most importantly to current students and future college graduates the FairTax recognizes what an education really is. An investment in human capital. Since there is no capital gains tax under the FairTax therefore there is no reason for a tax on tuition. The two are equal. This should go a long way to curbing the growing school debt crises for millions of Americans.
While the tax code is a major problem facing the future of our economy it is not the only problem. For instance, the dire need for jobs shows no sign of easing especially in regards to the actions taken by the Secretary of Homeland Security last week. In another blatant show of election year pandering the United States decided that it will no longer punish criminals who break the law. Allowing illegal aliens under a certain age to remain in this country based upon an arbitrary set of requirements without the consent of the judicial or legislative branches of government will make the search for jobs far more difficult for those just now entering the workforce. Luckily the FairTax has an answer to the issue of illegal immigration regardless of the unconstitutional and unchecked actions of a runaway executive. Even as the borders open to the sound of the rending of law books the FairTax offers us a chance in incentivize LEGAL immigration. Another topic of discussion that is rarely approached. Since the FairTax is collected at the point of sale any illegal visitor will pay along with every citizen. The difference is the prebate. The prebate will cover the sales tax cost of a basic basket of goods based upon the number of people within a household. This prebate will be sent to every legal American citizen and will not be given to those in this country by a less than legal means. Meaning that it will apply to law abiding citizens and will not benefit those whose first act on American soil constitutes a federal crime.
We live in complicated times, as all generations do. To pretend that our technological prowess can remove us from the basics of accounting or the consequences of our actions is nothing more than a lie or a foolish denial that will result a very grim outcome. We must at some point show maturity or else we run the risk of being defined by our adversities instead of conquering them. Like many mathematical enigmas the problems we face can seem insurmountable or impossible to unravel. But the most confounding riddle seems simple when you know the answer. To untangle the teeming mass of red tape, to unlock the door to opportunity, to break the cycle of joblessness and debt we need only to pass the FairTax. There are very real problems that we are facing as individuals and as a nation. We see other nations fighting the same battles. Let us learn from their failings. We could continue down the road to more bailouts and dire consequences or we can look toward what has made America such a success in the past. Our emphasis on the rights and duties of the individual has crafted an economic engine that has led the world for the better part of a century. Now as American power and strength seems to wane let us stand again for what we did in the past. Individual liberty and individual responsibility are linked. Greece has chosen collectivist ideologies and has had its sovereignty essentially stripped away. We still have a chance to do the right thing here. There is a simple solution to this complicated mess. We just need your help to pass it.