Posted on 11/30/2008 2:16:43 PM PST by crusty old prospector
Gohmert Proposes Skipping Fed Income Tax
By ADAM RUSSELL Staff Writer
U.S. Rep. Louie Gohmert, R-Tyler, proposed that the U.S. government stimulate the country's economy by collecting no federal income tax this year.
Aside from the hundreds of billions of dollars in bailout money appropriated by Congress and the Senate recently, Gohmert said, total economic obligation has topped $7.7 trillion so far.
Gohmert said, as the current administration continues obligating trillions of taxpayer dollars to bail out failing businesses, a better, cheaper solution to revive the economy would be to suspend collection of the estimated $1.2 trillion the U.S. Treasury will receive in 2008.
"Secretary (of Treasury Henry) Paulson continues his unfettered spending spree and is driving our country further from the core capitalist principles on which it was founded," Gohmert said in a statement. "His and the Fed's bailouts in the past few months have set a dangerous and unmistakable precedent to nationalize or socialize our banking, insurance and investment firms; and now car companies and other industries, states and cities are also lined up with hands out.
"I am proposing that we end the giveaway power of Secretary Paulson and the Fed immediately and declare that taxpayers will pay no 2008 income taxes," he said.
Gohmert said the influx of money back into taxpayer's hands will create a surge in the economy. He said cars will be bought, houses will be built, mortgages paid, credit cards paid off and Christmas presents bought.
The stimulating effects of no federal tax would also provide a tax boon to states and cities that desperately need money to repair and build infrastructure, he said.
Gohmert said he was upset to hear disconcerting reports that some of the banks receiving bailout money will not use it to make more loans or shore up 'troubled assets' but will instead use the money to buy up smaller competitors, basically using tax dollars to monopolize banking.
He said these problems within the bailout signal why direct government intervention cannot and will not work. Gohmert proposes letting people that earn the money, the taxpayers, decide who gets bailed out by buying products and utilizing the companies that are best meeting their needs.
"My idea may sound unconventional, but it is trillions of dollars cheaper than our current course," he said. "My proposal actually relies on our nation's founding democratic principles that made us the greatest nation in the world before anyone ever heard of Mr. Henry Paulson."
Good luck with that.
He will never sell that idea to his collegues.
Sure, it’s a pipe dream. But as the Reverend Jackson was fond of saying, “Keep hope alive.”
I’m not worried. I have enough money to live comfortably for the rest of my life. Of course, I have to die by Thursday, but...
well if we can’t even monetize the enormous debt that this plan will create then we’d have to default and sell ourselves as slaves to the highest bidder.
The Freeper Economic Recovery Act of 2009.
SNIP
The bill would declare a one year federal tax holiday for adjusted net income below $150,000. Taxable income above that threshold would be taxed at the current marginal rates. Witholding would be suspended for the year for affected income levels effective January 1, 2009.
The collection of payroll taxes paid by employees would be suspended for one year with employers still contributing the required share and the employee receiving full credit. The Earned Income Tax Credit would be suspended for the year as it would be redundant.
SNIP
I think this would have a better chance of passing than what Rep. Gohmert is proposing.
Maybe you are on to something. I wonder if you forwarded it to his office, he would take the bait?
He’s your Critter, feel free to send it to him, or drop it by his district his office if you like. You’d have a better chance of getting listened to about it than I would.
OK, it is in his Inbox.
Terrific! Thanks.
And why would that be? Nations around the world change their tax policies all the time. Apart from a small cadre of economists and central bank planners most people around the world, including investors, aren't really that concerned about the details of tax policy. Taking a close to home example, how concerned are you that the State of Massachusetts periodically has a sales tax holiday?
What really matters to people around the world is the general state of our economy, its growth rate, and what US consumers are spending. Investors around the world would much rather see a tax holiday here followed by a tremendous economic rebound than they would see some other stimulus attempt followed by years of depression, recession, or even just minimal GDP growth.
Why are you so afraid of a large tax cut?
Sorry but I plagarized your eloquent legislative document. If he gets it written into law, I will make sure that you are cited as a source.
Louie voted against the bailout, and he was one of those who stayed in August during the recess to promote drilling.
Now there's an incentive for me to go out and get a job!!!
I’m afraid of a zero tax coupled with all this govt spending.
Bushonomics doesn’t work. You need to cut spending as well as taxes so that you grow the economy without going into debt.
MA can do whatever they want because if they screw up, they’ll whine and ask for a bailout. If the US is in a hole we won’t be able to support our troops and defend against terrorists.
On that we can both agree!!
I also believe most of the "bailout" money will be wasted. The entire notion of using borrowed money, backed up by the taxpayers, to invest in banks on unfavorable terms, or to buy worthless assets is a lame idea.
Come on we all know the system is a scam, anyway.
Why is it that the Federal govenrment, year after year can SPEND more than it earns in taxes+fees?
Because they are able to just print money through selling bonds to the Federal Reserve (which in turn gives it “free-money”-to be paid by you and I through inflaton).
Secondly
The tax system is basically a fascade- it is to give the unknowing public (and 90% of foreign and domestic investors) the illusion that the Federal government is actually earning money to pay off the loans they guaranteed by bankers (the FRes System).
Bottom line- the Federal government ~could~ continue without collecting one red cent in taxes~!
You are correct that it would ruin the Federal Government’s rating becuase then everyone would know “the emperor has not clothes”!!..
It’s meaningless unless you get rid of the Federal Reserve.
Frankly see my first post in this thread- (Go read “the creature from Jekyll Island”) becuase even if the gov collectd 0% they could still function becuase they would be allowed to “borrow” that money by creating it through selling bonds, and co-operation of the Federal Reserve-they are the poision that is killing America!
For a while, not indefinitely. The currency would eventually plummet with full debt monetization.
>can you tell me what is conservative about destroying America’s credit rating?
How would it destroy America’s credit rating to a) let the free-market decide which companies thrive and die, and b) encourage rational thought regarding money?
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