Some of the emails I’ve been writing lately aren’t much different than a blog post I’d write, so here’s another email I wrote to a friend about the Fair Tax and its “prebate.”

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If we judge today’s tax system and the Fair Tax according to the damage they would do to the economy and our lives, I would agree that the Fair Tax is a tax system I’d rather live under. The Fair Tax simple, it treats all individuals equally, people know what they “owe,” it is transparent, it’s easier for indiviudals to pay, it’s easier for businesses to manage… across the board, it beats the IRS hands-down. I read Neal Boortz’s first Fair Tax book, so I know that the entire system can be explained fully (including rationale, ramifications, and examples, AND in readable, non-legal English) in a small book that can be read in a few hours. If I had a magic wand that could magically convert today’s tax system into the Fair Tax, I’d wave it in a way that would put Harry Potter to shame.

Unfortunately, I don’t have that wand, and we live in a system where we’re all up-to-our-eyeballs deep in this horrible, arbitrary mess of a tax system. There are taxes on everything, the tax system is so large its impossible to read or understand, and it has spread to every level of government. Local, county, state, federal… there’s no escape from it. We don’t know who is taxing us, what they’re taxing us for, or even how or when new taxes are added. And if this wasn’t enough already, the ideas and philosophy that let this happen are stronger and more popular than ever. Most people either don’t care, or worse, they like today’s system.

So what do we do from our current position, this deep in today’s system? I think the only way is to fight the battle of ideas. We have to get people to understand what government’s role should be in our lives, that productive work is the only way to create wealth, that freedom is essential to human life, or even that human life is a good thing. Without getting those ideas worked out, any change we make in today’s system will just be destroyed tomorrow by the same force that’s causing things to get worse today. And from this position that we’re in, I think the Fair Tax is actually worse than doing nothing. It not only perpetuates the same bad ideas, it makes them worse and even more arbitrary.

How? The prebate. The fact that the government actually sends money out to individuals *before* they pay taxes. Look at today’s culture and guess how that would be perceived. How would a “common” man, one that doesn’t really understand or think about government’s proper role but likes the fact that the government seems to do things for him, think when he gets his first government check that he can cash at his bank? I bet it would be the same as many think when they get their “rebate” check from the government: FREE MONEY! Twelve checks a year! I understand that the money is supposed to offset the cost that he or she would have spent on taxes for “basic necessities,” and you do too, but this idea goes beyond taxation. At least a tax on consumption or a tax on production is a tax on *something*. This prebate is a free government check of an arbitrary amount decided upon by a government committee that has no business managing our money.

If the Fair Tax were a variant of a flat tax or, at the very least, a simpler tax system, I’d stand behind it. Not as the final solution, but just as a measure that will lessen the impact government has on our lives. But to me, the prebate is a “jump the shark” type of idea that makes it impossible to support. *Especially* if it tries to latch on to the surge of support and understanding about the problems with the direction our government has. As we all know, half of the battle today is getting people to realize that there *is* a free-market, pro-individual-rights path to take. Adding one more false alternative to today’s mess is only going to make it worse.

While listening to the Neal Boortz show a few weeks ago, I heard Boortz bash the “tea parties” that were springing up around the country. He was asked why he was so angry about it, considering the fact that it seems that the tea party supporters agreed with much of what Boortz believed. He responded by saying that he was frustrated that so many people could see a problem without seeing the “real” solution, which was the Fair Tax. I guess I’m the opposite of Neal Boortz on this one. I’m frustrated that so many people invest so much time and effort to try to herd people into directions without trying to address the ideas that are making people go in the wrong direction in the first place.

I decided that I’m going to go to a local April 15th Tea Party protest in Overland Park, KS. When I first heard about the protest I thought the organizers were going to include support of the Fair Tax, and since I don’t support the Fair Tax in one bit I decided that I wouldn’t attend. However, after doing a little more investigation I realized that tea party was not going to be a Fair Tax rally, and now I’m going.

I wrote an email to another Objectivist in town, and since it almost constitutes a fun blog post I thought I’d include it here:

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I’m not so concerned with Fair Tax supporters being at the protest as much as I am with Fair Tax supporters organizing the protest and turning it into a Fair Tax rally. I think the Fair Tax is, in some ways, much worse than the crazy tax system we have today, and it’s not something that I want to support. Nor do I want to lend Ayn Rand’s name to their cause (as if it were mind to lend). I listen to the Neal Boortz show regularly (Boortz cowrote the books on the Fair Tax), and I think they’re trying to take advantage of the good, honest anger that people feel about what the government is doing to our economy in order to push their fake cure, the Fair Tax. I’m not concerned now that I know that the Fair Tax supporters are actually going to be doing their own thing on the JCCC campus.

If I were to write out the Fair Tax scenario I had in my head, it would be something like this:

FAIR TAX ORGANIZER: We have to stop this mindless regulation of the economy!

ANGRY CITIZENS: Yeah!

FAIR TAX ORGANIZER: We have to get the government out of the economy and our lives!

ANGRY CITIZENS: Yeah!

FAIR TAX ORGANIZER: We have to put the government in its place!

ANGRY CITIZENS: YEAH!

FAIR TAX ORGANIZER: Ok, so now that we all agree, here’s what we’ve gotta do! First, we have to repeal the 16th amendment! Then we’ll get rid of the federal income taxes and start up a 30%…. ERRRRRR 23%……… sales tax on everything you buy! Then we’ll form a government committee to determine how much tax dollars an individual would have to spend to buy the “basic necessities,” and then we’ll deposit that amount in a special government bank account every month, and then we’ll send every citizen their own debit card that they can use to get their government money! Then all companies will flock to the United States, the government will still have the same amount of tax dollars to spend (if not more!), and the poor won’t have to pay any taxes at all! Say it with me! Fair Tax, Fair Tax, Fair T……

ANGRY CITIZENS: ????????????????????????????