Great news for North Carolina. In spite of massive obstructionism of the old tax and spend progressive Socialists of the previous administration, we are already starting to see the benefits of North Carolina’s new business-friendly Pat McCrory administration. North Carolina documented the country’s second-largest increase in employment in March, when 19,400 North Carolina jobs were added. The jobless rate has fallen to 6.3 percent, below the national average of 6.7 percent. North Carolina had an 8.5 percent jobless rate in March 2013, left over from the Perdue Administration.
Various areas of the government are being dramatically reconstructed, refined and in some cases removed. Broad scale regulatory reform is strengthening our competitive advantage and the creation of the “Office of Regulatory Reduction and Review” which targets outdated, unnecessary, and redundant regulations that serve as a barrier to job creation, expansion and capital investments. Incentives also play a role in competing for new business across the nation, however each promotional incentive is guaranteed a true return on the investment of public funds.
Another major factor in presenting a business friendly environment is the tax structure. The state has recently changed a portion of state taxes to a flat tax. This has been mentioned by many North Carolina businesses as one of the main considerations in making decisions involving expansion and relocation of assets.
With this thought in mind the Scotland County Republican Party recently drafted Resolution SCRP 2014: A “United States of America Tax Reform” revoking and replacing the 16th amendment with a Federal Fair Tax. Scotland County can take pride in having the only resolution passed by the N.C. Republican 8th District Convention. Having passed the 8th District Convention the next step is to proceed to the NC. State Convention and then to gain national approval at the Republican National Convention. For those unfamiliar with the purpose of a political resolution it is a statement adopted by a political body or by voters to drive change. A resolution in itself is not a law until passed by Congress.
The following is the abridged description of this resolution its justification and purpose:
United States Tax collection system is viewed by many to be a bloated dysfunctional bureaucracy. Its massive size apparently is as undefinable as it is unmanageable. Example of the National Tax Code in size: The standard text King James Bible has a total 1, 274 pages and the United States Federal Tax has over 75,000 pages.
By the sheer nature of its size and complexity the IRS renders itself not only unmanageable but also vulnerable to graft and corruption. Members of the United States tax collection system were recently accused of using IRS power as a political weapon to benefit the current administration’s political ambitions. Many areas of the economy were never constitutionally intended for the IRS to control yet they persist in their involvement. More than 16,000 new IRS agents were hired at the beginning of the Obama administration adding significantly to operating cost and a likely a cause of it’s perceived lack of communications and internal detachment.
The U.S. manufacturing base has literally been leaving our country by the boat loads due partially to the U.S. having the world’s highest corporate tax rate. Those of us that can find work are burdened with a multitude of taxes on our earnings.
In the form of a resolution, Republican citizens of Scotland County, North Carolina have recently voted to support the restructuring of the United States Federal revenue gathering system. Many other alternate forms of taxation have been proposed, however the Fair Tax was found to be superior both in equality and simplicity. This reform, by it’s nature, will remove unjust taxes and constrain future increases in the National Debt while also providing a vessel for future economic growth and prosperity.
You may be familiar with the term Fair Tax but are not sure how it works: The FairTax Act would repeal all payroll taxes, Social Security and Medicare payroll taxes, self-employment taxes, estate and gift taxes. Also all individual income taxes such as capital gains taxes, and corporate income taxes. In place of these federal taxes, the FairTax would levy a 23 percent tax on the final sale of all goods and services. Elimination of the previously mentioned taxes would reduce manufacturing cost by a projected 23 percent, thus lowering wholesale prices. As wholesale prices go down, retail price would remain the same and the difference between the two becomes your 23 percent embedded Fair Tax.
Foreign manufacturers not in compliance with the 23 percent reduction in wholesale price would find themselves at a competitive price disadvantage with American producers being that the 23 percent tax would be added to the retail price not part of it. Consequentially there would be a major Tax incentive to return production of goods to this country.
Unlike today’s tax system there would be no representation without taxation. Everyone that spends money pays taxes. The FairTax would however provide a family rebate of the 23 percent tax on the basic family necessities but only to American citizens and legal immigrants earning below the federal poverty level.
Social Security and Medicare benefits would remain the same: The Social Security and Medicare trust funds would receive the same funding as they do today. The source of the trust fund revenue would simply be embedded Fair Tax revenue instead of payroll tax revenue.
That’s right, with the exception of state and local taxes, you keep all your paycheck. Tax collection power is taken away from the IRS, lobbyists and politicians using your money to buy votes. No longer will favorite groups be excluded from paying taxes. You buy something, you pay taxes. You spend more, you pay more taxes. Bottom line is, it’s basically the same principle as a Flat Tax without adding a tax on to the retail price — it’s embedded.
Mark Schenck is chairman of the Scotland County Republican Party.