Cheat Sheet Q&A
Topic: Flat vs. Consumption Tax
Where would you suggest independent newspaper contractors, like me, get the money to pay the tax? I drive 1,300 miles per week. That gets expensive.
Bottom Line: I appreciate the passion of this question/topic. This response is with regard to my assertion that a potential fix to our current tax code, revenue issues and
The dirty little secret about our tax code is that it picks winners and losers by design. By doing so many different groups and individuals benefitting by elements of the tax code it creates built in demand to keep the items (deductions) that people like. That keeps the status quo in place and continues to lead to more engineering of the tax code and more growth of the
I’ll address why I don’t support a consumption or national sales tax effort. A national sales tax would create a whole new line of taxation that the Federal Government has never had at their disposal. By now we should be well versed in what happens at the Federal level once a new tax is introduced. A national sales tax would be fair based on the amount of consumption of each individual. So why wouldn’t I support it? I’d only be willing to consider a consumption tax were it also attached to a Constitutional Amendment banning a Federal Income tax. Otherwise all we are doing is adding yet another line of taxation to our current system. This is where pragmatism needs to play a role.
What, honestly, are the odds of getting a Constitutional Amendment passed banning the Federal Income tax? That would require support of 75% of the states, 67% of Congress and the President. This is why I’m primarily in favor of a flat tax. It’s far more viable.
All that is required to pass a flat tax eliminating our current disaster of a tax code is 50% plus 1 vote in each body of Congress and a signature by the President. So it’s quite obvious which could stand a chance of passing if the stars aligned. If you want a consumption tax than fight for a flat tax first and a consumption tax with banning of income tax once you’ve achieved the flat tax. So back to the original question…
How would an independent newspaper contractor afford to pay the flat tax? I’ll answer your question by posing another. How do you afford to pay the taxes you pay now? This is true of all groups that have an interest in the current code.
The reality is that the economy would adjust and correct based on true market forces of supply and demand, which is what a free market is supposed to do, for all industries.
I’ve been quick to mention the flat tax recently because a majority of Americans support abolishing and/or reforming the
If you have a topic or question you’d like me to address email me: firstname.lastname@example.org
Quality of life & how it's changed for so many Americans & Fed impact etc.:
Bottom Line: I came across a story over the weekend (in the link below) that saddened me for a few reasons. The premise of the story is that Gen X still isn’t making progress towards retirement. Sadly that’s not a big surprise and instead of rehashing that conversation, there was a statistic cited that is telling about something much bigger than Gen X savings. Overall quality of life.
In the story a survey was cited in which 73% of all people currently working are struggling to meet their monthly expenses, up from 60% in 2011. Here are a few quick take aways:
So if the unemployment rate is lower, income is higher than the 1% Government reported inflation rate, how is it that so many more Americans are struggling? The reason – the hidden impact of the Federal Reserve.
The Federal Reserves policy of QE (money printing to some) has placed up to 21% more
The average person is making 5.5% more than they were two years ago (1.8% growth compounded) but our money is worth up to 21% less. That means you buying power has been reduced by 15.5% by the Fed. That’s why it’s no surprise that 13% more people are struggling to make ends meet. While the stock market and real-estate market have benefitted by the Federal Reserve policy, it’s taken a toll on most Americans just being able to pay the bills.
What summer "sales" are really good deals that make sense to buy?
Bottom Line: So what sales are actually good over deals this summer)?
So if you’re in the market for any of these and you see them on sale, the odds are you’re getting one of the best deals available during the year. Seasonality is playing a role with all of these categories. So if you’re trying to time a good deal, don’t be afraid to pull the trigger if you like what you’re presented with – it might be the best price you’ll find at anytime this year.
Millions of Facebook users have had their phone numbers and email addresses compromised:
Bottom Line: If you have a Facebook account and recently noticed an uptick in spam emails and unwanted phone calls Facebook may be the reason.
In what Facebook is calling a “glitch”, 6 million Facebook users had their email addresses and phone numbers made available for would be hackers to see. This took place for months before it was found. It may make sense to keep a secondary email address to keep on file with site like Facebook that are frequent targets for data leaks and hackers.
Twitter - location based advertising coming soon:
Bottom Line: Twitter has been ramping up its ad offerings as it approaches a moment in which it will either become a publically traded company or becomes purchased by another tech giant. The latest project they are working on is location based advertising on Twitter. Basically a business would buy a certain geographical area and their ads would show on Twitter feeds of users when they would enter that area. It’s an interesting concept that could be highly effective for impulse based consumer activity, like eating out or having a drink after work.
It will likely be a few months before it’s available but it could be interesting for many types of local businesses that target an active younger customer base.
Could Sony get its groove back?:
Bottom Line: Sony hasn’t exactly captured the imagination of the consumer tech market the way they once did. Sony is mostly regarded as an old tech company at this point. But as we move into a new era of wearable tech could Sony be positioned to shine once again?
Sony was the first innovator of wearable tech with the Walkman. They also have been the first to come to market with a smart watch (in April of last year). Last year’s smart watch wasn’t where it needed to be to reach critical mass. It needs an active Android based phone to work with it and doesn’t offer much that the phone doesn’t already provide. That too could change.
Sony is about to announce a next generation smart watch that could be a serious player in a developing wearable tech marketplace.
Just over 30% of all smart phone owners say they will buy a smart watch if it’s the product they’re looking for. If Sony can deliver a smart watch that’s truly innovative and user friendly, they have a chance to get back on the map (and we’ll not have to wait for Apple to create a watch to look like James Bond).