Mike Huckabee: A Simple Government: Book Review. Chapter 4: If You Drain The Lake All the Fish Will Die. (We need a simple and fair tax system. Something smell fishy to You? [Yes, You Huckabee.])

April 4, 2011 by
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MR. TAX EXPERT

Huckabee in this twelve page chapter addresses the tax system and offers solutions to perceived         inequities.  Some of those inequities he perceives are Payroll Taxes, Income Tax, Estate Taxes, Corporate Taxes and Capital Gains Taxes.  Huckabee himself is not an economist or a specialist in taxation and so he alludes to many foundations and think tanks for authority and support. Most of these foundations and think tanks were established under the present taxation system to avoid Estate Taxes and create a memorial for the deceased as a public benefactor at the expense of the public.

He states that corporate taxes are too high in comparison to other industrialized countries. (Corporations are taxed beginning at 15% and up to 35% on taxable income of $335,000.00 or higher.  However it is a well known fact the large corporations often pay no corporate taxes.  GE is one example but there are many others. Frequently profits made abroad are sequestered there to avoid U.S. taxes and corporations have sophisticated lawyers and accountants to advise them on how to avoid taxes as do the wealthy.)

Also the wealthy and corporations have lobbyists and politicians to advocate changes in the tax code to benefit their clients. An example of this is the Bush tax cuts which were extended after the 2010 Congressional elections which allowed Republicans, many who were also members of the Tea Party, to control the House of Representatives. Thus at a time we are running large deficits tax breaks have been extended to those whose income is over $250,000.00.

Huckabee’s original field of expertise is in Christian Ministry and it’s obvious that his Christian teaching have not spilled over in to the area of economics and taxation.  He would do away with Social Security, Medicare and other social welfare programs administered by the Federal Government that benefit the type of people that compose the members of his church.

He argues the discredited Supply Side economic doctrine that if taxes are lowered particularly on the wealthy ultimately it will generate more taxable income by stimulating the economy. Thus lowering taxes on the wealthy would create jobs for the less wealthy. This argument was put forward by Reagan economist Art Laffer. However in practice it did not turn out to be true.  The wealthy have less need to spend or invest their money than the poor or middle class and lowering their taxes had less effect than lowering taxes on the middle class who of necessity do spend the extra income creating jobs

In the case of the Estate Tax which was eliminated by the Bush tax cuts in 2010 this was changed to tax estates over 5 million and in the case of couples 10 million dollars. The top rate is 35%.  This falls on less than 2% of estates. In the case of farms and small businesses special provisions apply to them to prevent liquidation to pay taxes. Why Huckabee is against estate taxes is irrational. Lack of taxation only keeps large amounts of the Nation’s wealth in the hands of those who didn’t earn it and frequently don’t use it productively. Thus creating an elite supported by unearned wealth instead of accomplishment.

Repealing the Estate Tax would cost the government approximately 34 billion in revenue.

In this chapter Huckabee declares his support for a plan called the Fair Tax. This a national sales tax that would do away with Corporate taxes, Payroll taxes, Estate Taxes, Income Taxes, Capital Gains taxes etc. Allegedly this would do away with the need for the Internal Revenues Service. One wonders who would collect the tax and make sure it reflected an accurate figure. It sounds like a field day for tax cheats. Economists are split on the efficacy of this system. There allegedly would be a prebate for those living below the poverty line of the amount they would likely pay under this system.

The vast portion of this tax would be paid by the middle class just as they pay the most under the present system. Thus the wealthy who spend less on a percentage basis would untimely benefit. Instead of a “Fair Tax” this in reality would constitute a  tax shift away from the wealthy to the middle class and ultimately create a greater divide between rich and poor thus creating politically instability.

At the end of this chapter, Huckabee asks “something smell fishy to you?” Perhaps he just smells himself.

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2 Comments on Mike Huckabee: A Simple Government: Book Review. Chapter 4: If You Drain The Lake All the Fish Will Die. (We need a simple and fair tax system. Something smell fishy to You? [Yes, You Huckabee.])

  1. Mark on Mon, 4th Apr 2011 12:18 pm
  2. You got it sorta right, but you don’t know what I do about Fairtax. I was a fan at first.

    It’s easy enough to show how goofy it is — and if Huckabee ran, it would be exposed as total nonsense. Huckabee can’t run —

    Can you see Huckabee defending THIS.? We now find out, from Fairtax itself , that ALL of their “research” is based on the GOVERNMENT paying 40% of it’s own revenue.

    Yes — the GOVERNMENT will pay it’s own revenue. As in – the city of Los Angeles, just ONE city government, would owe a staggering 700 million to the federal government. The state of California would owe a bone crushing 15 billion to the federal government.

    This is ON TOP of the tax people pay on their consumption. All cities, all states, all counties, would pay truly massive taxes.

    This goes beyond idiotic. This was buried deep in their fine print, and we had to ask three different official spokesmen about it. But they all fessed up — in fact, they bragged about it. I have the fine print — AND their own answers about the fine print here.

    http://fairtaxfineprint.blogspot.com/

    Fairtax is not even a serious plan. It’s a total and complete farce. There is almost nothing going on for Fairtax either — other than some for show nonsense. They claimed 600,000 volunteers at one point, 100 sponsors in Congress, and “the most researched plan in history”

    All nonsense. The reason there is virtually nothing going on with Fairtax is, it’s goofy, and their own leaders know it.

    Oh it sounds great ! And we all know how horrible our tax code is now — and Fairtax makes a huge and largely correct deal about that. But that’s like knowing cancer is a terrible disease, and telling us how bad it is. Then they pull out some snake oil, some magical goat pee, and say “we have the answer”

    They got goat pee.

    They are hidding a massive “second tier” of taxation — in their fine print. They have no intention of passing it, or even having hearings on it. This is not a “scam” in the sense that their leaders are not trying to pass it.

    They KNOW it’s goofy. They KNOW you can’t make every (or any) city in America pay massive taxes to the federal government. Only people pay taxes — the say correctly. Which is why they hid this massive goofiness in their fine print.

    They have no intention of telling Los Angeles city government — or any city or state government – that they will have to pay over a trillion dollars in taxes. These guys aren’t delusional — they are insincere.

    They WISELY hid this nonsense – out of seven books, some 500 videoes and maybe 1000 speeches, they don’t mention this massive tax ONCE. not ONCE.

    Yet Fairtax is essentialy a giant shift in taxes — make the city and states pay about 40% of the federal government revenue. And this is just ONE of Fairtax fundamental absurdities.

    Furthermore it would take a Constitutional amendement to make it even possible to force city and states to pay this — that’s another hilarious aspect. The city and state governments — 3/4 of them — would have to WANT to be taxed idiotically.

    Do you see why Fairtax hid this? And why they are not serioius? It’s goofy.

    As Fairtax spokesmen David Kendall so idiotically said, while defending this farce of a huge hidden tax “I see nothing wrong with asking city and states to pay their fair share”.

    That’s the point — they didn’t ask – they HID. This massive tax his hidden. They could need these state’s approval to do it! Yet they hide this! They admit it, when confronted, but essentially they hide in the fine print.

    The only way we found it — is by asking Fairtax spokesnmen. We challenged them to produce something in their own bill which taxes the government — because we heard mention of it.

    Ross Calloway, another spokesmen for Fairtax, actually seemed to BRAG how well they had hidden it — and sent me the exact fine print! You have to “put together” he said, several sentences, or phrases, in their own bill!

    This is not what I said — in talkiing (emailing) to three official spokesmen, I got the most amazing answers. Yes, Fairtax has a trillion dollar plus tax on city and state governments,. No, city and states do not know about it.

    James Bennett, official Fairtax spokesmen and “educator” told me that “We have no plans to specifically educate city and state government officials” about this tax.!

    Can you imagine! I asked how will these city and states ever find out — he said they can come to hearings we will eventually have in Congress.

    That’s hilarious – -first, why hide it for 10 years anyway? Second, they have pretended to want hearings, but they no more want hearings under oath than a snake oil salesmen wants you to see him fill his magic potion bottles with goat pee.

    That’s what Fairtax is – goat pee. It’s an old fashion farce.

    The big reason it’s a farce is NOT the idea of a national sales tax — its a farce because they say the rate will be 23% — total nonsense. The actual rate would have to be over 50% —

    Anyway, see their own answers.

    http://fairtaxfineprint.blogspot.com/

  3. Ed on Mon, 4th Apr 2011 12:35 pm
  4. Mark I am sure you know more about the Fair Tax than me. I just noted what was in Huckabee’s book and what jumped out to me as being wishful thinking.

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