Innovative Economic Solutions Needed, Not Massive Government SpendingBy Rep. Steve King
From blue- to white-collar workers, from farmers to small-business owners, Americans across our great country are affected by these tough economic times. Our track record shows America can and will bounce back.
Throughout our nation’s history, the resolve and work ethic of the American people pulled America through trying times, including challenges similar to those we currently face. America is a land of innovation and entrepreneurship. I believe positive days are ahead, if we make the right decisions and give our citizens the freedom to prosper from their hard work.
President Obama understands that America’s strength is its people, but his proposals show a lack of confidence in the free-market system that can keep America a powerful and prosperous country. Bigger government, more wasteful Washington spending, new bailouts for bad decisions and tax increases will not create good-paying jobs or stimulate the economy.
Now is the time for innovative solutions that stimulate long-term growth without forcing our grandchildren into more debt. One plan few members of Congress are discussing will single-handedly spark a new era of growth and job creation in America.
Eliminating the income tax, removing taxes on production and enacting the FairTax - a national sales tax - would grow the private sector and create new, good-paying jobs. Enacting the FairTax will put American taxpayers back in control and jumpstart our economy.
Right now, when American companies export their products overseas, they must pay payroll taxes, embedded taxes and compliance costs to the IRS, and then compete directly with foreign manufacturers who do not pay these taxes. Our current income tax system puts American products at a disadvantage on the world market and makes American products more expensive than their competitors in foreign markets With the FairTax, American producers will no longer be forced to pass on embedded costs to foreign customers.
The FairTax will give American producers an edge here at home as well. A tax structure that rewards foreign products over those made in America is one of the main reasons why some American producers, like the Big Three, struggle to compete with foreign importers.
By shifting taxation from productive behavior to consumption, the FairTax allows Americans to take home their entire paycheck and eliminates the income tax and IRS. This will have a stimulative effect on our economy. Not only will Americans have more money to spend, they will have more money to save and invest—which will give American businesses more access to capital. This, in turn, will allow greater investment in research and development and result in the creation of new jobs.
The FairTax system has earned the support of Americans who desire a fairer, simpler system of taxation and more good-paying jobs. Support for the FairTax is growing around the country.
It is time for Washington to stop passing expensive, patchwork solutions and instead consider real, sweeping change. The FairTax will unleash the power of America’s worker and allow us to grow out of the current economic downturn.