My other half and I took our two kids and went to a conservative association meeting. We came away with a little book for the kids called
Founders' Fables that teach lessons based on the Constitution. It's very cute, and very well done.
We also came away with a deep-seated frustration that the presentations offered were so basic. Seriously, people--what the hell is wrong with you? How in the
hell can
anyone be unaware that
there is no special trust fund for social security? Who doesn't know that the current generation of workers is paying for the current generation of retirees? Who doesn't know that the population of workers is shrinking while the population of retirees is growing?
Worst of all, who simply whines "I want the money I was promised, no matter that it's at the expense of my kids and grandkids?"
So. There's the irritation. Here's the alarm.
Most of my readers are aware that I'm in Missouri. We've had "Fair Tax" legislation floated about for a couple of years, now. It sank in committee. Simply couldn't garner enough support.
Instead of abandoning it for a flat income tax (sensible--which is why politicians won't go for it), they've re-named it the
Missouri Jobs Act.
Okay, first off: the whole "Something failed to gain support from the sheep--I mean voters, so let's sneak it past them by renaming it" alarms me. It's related to the whole
pride issue I wrote about a bit more than two years ago now.
The reasons a sales tax didn't gain traction are too numerous to mention. Let's talk about the effects we can expect to see in Missouri if they succeed in passing this renamed "Fair Tax."
People within about thirty minutes' drive of a state line are going to do the majority of their shopping--especially on big ticket items--out of state. This directly results in...
1. Fewer sales made
in state. Fewer sales mean smaller profits, as well as smaller amounts collected in state taxes.
2a. Smaller profits mean overheads must be lowered. Overhead includes employee wages. That means that people are going to be fired. Which, in turn, means not only is less money going to be spent in-state, but more unemployment is going to have to be paid out.
2b. Items sitting on shelves will have their prices dropped in an effort to sell them, leading to an even smaller profit margin, even with fewer employees. Small business are still going to go out of business.
3. Shoppers fleeing the state to shop will eventually lead politicians to increase the tax rates, and possibly re-apply an income tax
on top of the "fair tax."
4. Both businesses
and income earners will begin to flee the state.
The Fair Tax is
not a good idea, not in this economy. Many of us knew that, and that's why it was defeated under the proper name. Re-naming it and foisting it on us again demonstrates a level of deceptiveness and chutzpah that just frightens me. Tells me that my home state is determined to self-destruct.