Political Establishment is Out of Touch

Part three in a series of articles by Roger Bucholtz

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Scott Brown’s Massachusetts victory demonstrates the disconnect between voters and the Republican and Democratic Party establishments that has been in evidence for some time now.  That view was validated in two December 2009 polls:

  1. Wall Street Journal/NBC – In a 3-way race between Republicans, Democrats and Teaparty:

Teaparty – 41%
Democrats – 35%
Republicans – 28%

http://blogs.wsj.com/washwire/2009/12/16/wsjnbc-news-poll-tea-party-tops-democrats-and-republicans/?

  1. Rasmussen – found that 73% of Republican voters believe Republicans in Washington are out of touch with the base.  http://www.rasmussenreports.com/public_content/politics/general_politics/december_2009/tea_party_tops_gop_on_three_way_generic_ballot

A January 5, 2010 Rasmussen poll found that 43% of the public believe that most congress members are corrupt, while 32% believe they are not, with 25% undecided. http://www.rasmussenreports.com/public_content/politics/mood_of_america/congressional_performance

On January 6, Rasmussen released poll results showing only 32% of likely voters nationwide are even somewhat convinced that their elected representatives have their best interests in mind.  The electorate is highly skeptical of incumbents. http://www.rasmussenreports.com/public_content/politics/general_politics/january_2010/32_confident_congress_represents_their_best_interests

A national Teaparty website, called the Contract From America, asks visitors to vote on which public policy issues they consider the most important.  The national FairTax is currently in the #1 position, with twice the votes of term limits, balanced budget amendment, drill here/drill now and thirty other issues which are on the list.  No other tax reform proposal even made the list.  At the Michigan Tea Party Convention held in Holt last spring the MI FairTax was the runaway winner as the #1 issue of importance in Michigan.

http://www.contractfromamerica.com/Idea.aspx

Politico is now reporting that 2009 will probably represent still another record breaking year for lobbying revenues, in spite of the current difficult economy.  This buying and selling of votes for tax and other favors has so corrupted our representative form of government that many legislators no longer listen to their constituents.  http://www.politico.com/news/stories/1209/30882.html

The above information can be very useful to candidates in upcoming elections but most are just learning of these recent polls and the Contract From America.  For example, few candidates are aware that the FairTax/MI FairTax is the #1 issue for the millions of very politically active Teaparty members.  These surveys show candidates that they likely have a better chance of winning by choosing to run on issues of importance to constituents, and truly representing constituents, rather than running as establishment Party members, regardless of their party affiliation.

Defining who candidates are and in what manner they will represent constituents can best be predicted by whether they run as an establishment Party candidate or as a representative of the people.

Currently no political party advocates the FairTax or encourages their candidates to run on it, often saying that it is too difficult to explain (that the public is not capable of understanding it).  The Teaparty votes placing the FairTax at the top of its issues list dispels the claim that the public can’t comprehend the FairTax.  A more likely reason is that the buying and selling of tax favors (which accounts for half of all lobby money going to the political establishment) is eliminated by the FairTax/MI FairTax.

The MI FairTax is a simple 9.75% retail sales tax that will replace the current 4.35% state income tax, 6% sales tax and most business taxes.  Michigan residents recognize that they already are paying all so called business taxes as businesses treat tax cost just like other expenses and pass the cost on in prices.  We citizens also understand that the tax inflated prices of Michigan produced goods and services place Michigan labor and business at a competitive disadvantage to products produced elsewhere and that this is costing us our jobs.  A Harvard University study determined that 22% of the retail price of American produced goods and services are taxes hidden in our prices.

The MI FairTax is unique in that it provides for a monthly “prebate” payment to every legal household in the amount of what the tax would be for expenditures up to the poverty level.  This untaxes the poor and, like today’s standard deduction, causes the tax to be graduated.  Because of the prebate and other untaxed uses of income, the typical Michigan household will have an effective tax rate of around 2.5%.

Since the MI FairTax rate is set to raise the same amount of revenue as the taxes it replaces, Michigan residents will be paying about the same amount in taxes as we are today.  The major differences are that we will be able to see our true tax burden for the first time in generations (you can’t fight it if you can’t see it), we will have the most attractive business tax environment in America to attract jobs, and we will have re established our representative form of government where our elected officials represent the people rather than special interests.

For more information visit www.mifairtax.org.

Roger Buchholtz

MI FairTax President (volunteer)

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