Why the Underground Economy will Make the Fair Tax Inevitable, or Neal Boortz is Right This Time

The Underground Economy is the new black. Let me explain.  Joe joins the ranks of 6+ million other Americans and loses his $50,000 a year suck-ass corporate job that he hated anyway.  Our economy cannot absorb that many unemployed with new jobs.  Ain’t gonna happen.

Ain't got no job...no worries!

Ain't got no job...so what!

Joe’s post-tax income is $41,156 per year.  He needs to replace that–not $50,000.  Joe figures out what he can do with his skills.  He can do odd jobs, take pictures, cater barbecues, do landscaping jobs…he has no shortage of skills.

Joe's in business!

Joe's in business!

He spends $40 bucks and places a magnetic sign on his car with his cell phone number.  “Joe for Hire!”  It takes a few weeks, but Joe starts to get some jobs.  He needs $791 bucks per week to get back to exactly where he was in his suck-ass corporate job, where he idled the hours figuring out different ways to murder his boss.  The cash is flowing in, and best of all…Joe is keeping the entire amount that he earns.  He’s getting paid in cash and checks.  This is great.  Anything Joe makes over $791 is a raise!  He’s a proud member of the Underground Economy!Joe's keeping all his cashola!Joe’s not a bad guy, but it’s really, really doubtful that he’s going to report his new-found underground income to the IRS.  This is where the problem for government is, and it’s also what makes the Fair Tax inevitable.

Joe’s money is no longer contributing to the United States Federal Socialist Governments’ coffers…and Joe’s not alone.  He’s also not contributing on the State or Local level.  Joe’s non-taxed $$ creates a really big problem for the Government, that is, assuming that someday we’ll have an administration in place that realizes that we can’t just go to Kinko’s and print more dollars to fund programs. We needs cops, teachers, roads etc. and it takes collected tax revenue to pay these folks!

Enter… eventually, the Fair Tax.

What a concept!  No more IRS!!

What a concept! No more IRS!!

Under the Fair Tax everyone gets to keep all of their money…no more taxes taken out of your paycheck.  The lynch-pin of the Fair Tax is  a National Sales Tax–I think the rate is 23%.  That means that Joe–who is now enormously happy with his new unmolested income is going to join the regular economy again.  The IRS is abolished…no more cheating on taxes, and the underground economy is gone.  Now you pay taxes on what you purchase, not on what you earn.  Achievement and success are rewarded again!

Here’s the second grade explanation of how it works.  Joe needs a new hammer, and he buys it from his locally owned hardware store–not a big box. The price is $10.   His total is $12.30 because of the National Sales Tax.    His tax is collected by his local hardware store and they send the tax back to the government…who will waste it, but at least they got to collect it.

Big Government Costs Big Bucks!!

Big Government Costs Big Bucks!!

This is a really simplistic summary of what’s really going, on and what’s going to happen in this country, and I’m not so sure it’s a bad thing.  I’m no expert on the Fair Tax, but I’m going to be…I have to be.  I want to be prepared for this when it gets here.

I’d encourage you to do your research.  I’m sure going to. Neal Boortz, Atlanta Libertarian conservative radio talk show host and all around rabble rouser seems a likely first choice to get the details from.  He’s written a few books on the subject.  I’m going to order one tomorrow from Charis Circle–a locally owned bookseller with a cause.  (you’d have to understand Neal and Charis to understand how comically ironic and convoluted this transaction will be!) It might take me a while to fully understand this whole Fair Tax issue, but it’s important, and I’ll get there in short order.

Neal's not too pretty...his producer Belinda Skelton is!

Neal's not too pretty...his producer Belinda Skelton is!

In the mean-time…celebrate the resourcefulness, and the resilience of the  members of the Underground Economy. They’re reinventing America as we know it and they’re finding creative ways to replace their lost jobs and income.  These folks are to be saluted for not giving up.   They’re not quitters, they’re our neighbors.  Go out of your way to support your local entrepreneurs. Go local…your neighbor needs your money, and so do I.

This country will survive.  It’s going to look different, but we will persevere.  We’re Americans dammit!

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Cheers,

Jim

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