Repeal the 16th amendment.

I know what you're thinking...Kelly's a PI not a political activist. Well, I do intend to use this blog to disseminate investigative and security type information, but from time to time I will also speak on things that I enjoy, am interested in, or feel passionate about. One of the things I feel passionate about is the state of our union today and how I, my children, and YOU will be affected by decisions that are made today and in the future.

We all know our system of government is broken in many ways, but today I would like to focus on the tax system in particular. This area alone, I believe, could singlehandedly reverse our economic state of affairs and rather quickly too. I'm gonna take a no-nonsense approach in the interest of time, space, and "boredomness" (<--- Is that a word?).

The 3 most important actions that MUST be taken immediately are:  1. The 16th amendment MUST be repealed. Why you ask? Well, this amendment gives the government broad power to regulate and impose taxes on you, me, and companies. 2. The IRS MUST be dissolved. You say:  "but wait Kelly...won't thousands of people loose their jobs as a result"? The short answer is YES. But I will explain in a moment how that problem will be fixed in a brief period of time. 3. Capital gains taxes, and taxes on corporations MUST be done away with. Now the rich get richer? Kinda, but so do you!

Once the 16th amendment is repealed, the IRS dissolved, and capital gains and corporate taxes are nixed, then what? Tada! A new tax system is introduced - namely the "Fair Tax". Contrary to popular belief the Fair Tax does NOT increase the cost of goods. Let me explain:  Currently the average embedded taxes in every consumer product or service is about 22%. In some industries, such as leather goods, the embedded tax is smaller.  In other industries, such as homebuilding and construction, the embedded tax is higher, but it averages out to somewhere between 22 and 23%.  With the passage of The FairTax Bill, those embedded taxes disappear.  These embedded taxes include the combined tax burdens of all entities involved in bringing those goods or services to market, and that includes you, the employee, and the taxes you incur as a result of your employment. Now,  that the competitive pressures of the marketplace will force prices down when embedded taxes disappear from the cost of retail goods and services, and we cite 22% as the average amount of those embedded taxes.  Does this 22% include the income and payroll taxes that are paid by employees?  Yes, it does.  So ... what does this mean to your paycheck after the FairTax becomes law?
When the FairTax is implemented, and when business and personal income and payroll taxes disappear, your employer is going to have to make a decision.  He will either take some or the entire amount he had been withholding for federal income and payroll taxes and add it to your weekly check, or he will readjust your pay figures so that your entire paycheck will be equal to what you used to call "take home pay" before the FairTax.  The employer may also decide to do a little of both.  Either way, you can see that the amount of money you actually receive as pay – the amount you can put into your bank account – will not decrease, and may actually increase.

On a larger scale real wages will rise to the extent to which the nation's employers decide to return the embedded costs of their employee's income and payroll taxes to the employee.  Likewise, the cost of the products or services produced by the employer will be reduced to the extent to which that employer retains all or a portion of those income and payroll taxes together with the other taxes on capital and labor eliminated by the FairTax.  Once again, a zero-sum, revenue neutral game.

I predict that once the Fair Tax is implemented, the majority of businesses that left this country to produce their goods and services in an effort to save on taxes and labor will return and provide hundreds of thousands of jobs. Now those former IRS employees and then some have places to work.

I'm probably on DHS's security watch list for posting this. Oh well, it's a small price to pay to fight the good fight of freedom and the PURSUIT of happiness. Remember the Declaration of Independence grants us the right to PURSUE happiness, not for it be given to us.

Victory Investigations is THE source for investigative services. A North Carolina licensed and insured Detective Agency located in Greensboro, NC. www.VictoryPI.com, (336) 298-2034, 1-888-482-6273, investigator@victorypi.com