Yes, Obama, Everyone Should Pay Their 'Fair Share'

Friday, 11 Nov 2011 10:53 AM

By Bill Spetrino

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The president and I disagree on many subjects, but when it comes to federal taxes, Barack Obama is right: We need everyone to pay their fair share.

 

Now, before some of you claim I’ve taken a leave of absence from my senses, read on. For Obama, this “fair share” claim is simply rhetoric. He is aware that almost 50 percent of the people in the U.S. pay no income tax, while the top 1 percent pay almost 37 percent of all income taxes.

 

Now, Obama will say that the top 1 percent should indeed pay at least that much, since they make so much of the money.

 

In fact, the top 1 percent of the earners made 17 percent of the entire adjusted gross income. So in reality these people paid more than double of what they should paid, given their income.

 

But why let the facts interfere with good political rhetoric?

 

As I stated a few weeks back, I was intrigued by Herman Cain's 9-9-9 plan and with the help of the Moneynews readers and hundreds of Facebook friends, came up with a plan where everyone would pay their fair share.

 

You can see that article by clicking here:

http://www.moneynews.com/BillSpetrino/tax-plan-strategy-changes/2011/10/21/id/415278

 

At the Republican debate, Cain was mocked for constantly mentioning his 9-9-9 plan, but as every salesman knows, the key is getting your message out.

 

However, listening to Obama talk about everyone paying their “fair share,” it became crystal clear to me that both Cain and myself have not effectively sold the American people on how fair the plan actually is.

 

To me, it boils down to a simple question: How do we shift the tax burden from those already paying taxes so that those who are not also contribute?

 

The reality is, about 51 percent of Americans in all income levels are paying federal income for the other 49 percent who are not.

 

To achieve "fairness," this needs to take place. The 50 percent who are now paying the taxes for everyone will almost all pay less under my plan or Mr. Cain's plan.

 

So where does the shortfall get made up?

 

The national sales tax is slammed by the left and right as dangerous and irresponsible. But combined with lower personal and corporate tax rates, it shifts the burden to many groups who now pay no federal income taxes

 

The first group is foreigners visiting the U.S and spending money here. Our ally and neighbor, Canada, has done this for years, and those of us who have visited Canada and enjoyed their beautiful country have contributed for that privilege.

 

Here, we are facing a $15 trillion dollar debt — why should the U.S. not do the same?

 

The second group is the millions of illegal and undocumented people who fly under the radar. They will now be paying a national sales tax on non-food and drink. Again, these people who enjoy many benefits and use our parks, roads and hospitals can contribute by paying their fair share.

 

Now, certainly we will never get the full amount of what these undocumented workers should truly pay, but at least we will get something and shift some burden off those now who are paying not only their share but someone else's fair share too.

 

The third group is criminals and tax cheats who stay "underground" and escape federal income taxes — they’ll still go on not filing, of course, but will have to contribute something because of the national sales tax.

 

Unfortunately, we are not going to stop most of these criminals and drug smugglers  who live lavish lifestyles and pay no federal income tax from their lives of crime. But at the very least, every expensive "toy" they purchase will be contributing to the federal tax receipts.

 

As for those against the sales tax, many have told me that senior citizens and poor people who now pay no federal taxes will have to pay some federal income taxes under my plan or Mr. Cain's, which they say is a problem.

 

I have a counterargument to this point: Yes, they will have to pay the sales tax, but while it may not completely counteract it, the retail prices of many items will be less, because a corporation like Wal-Mart who paid 7.65 percent in social security and 35 percent in corporate tax will now pay a lot less and, for competitive reasons, will pass some of that savings down to the consumer.

 

Those who say this won't happen are delusional. Wal-Mart is the number one retailer in the world because they keep their prices so low, and others will follow suit in a free market.

 

The bottom line is, under the Cain 9-9-9 plan or my variation, workers who pay taxes and business owners and stockholders will all make more money. That should lower unemployment and increase the GDP, which will all indirectly reduce our massive deficit and help us reach a balanced budget.

 

Like President Obama says, this is about our $15 trillion dollar debt and everyone paying their fair share.

 

I’m looking forward to hearing your feedback, at dividendfeedback@newsmax.com.

© 2014 Moneynews. All rights reserved.

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