Corder backs 'fair tax' plan

What as a "Fair Tax"?

Most of us would agree that the only fair tax is the one that someone else pays.

"Fair Tax" is a congressional initiative, co-signed by our own governor that attempts to broaden the tax base to the broadest possible point. The Fair Tax is a consumption tax assessed one time only on all retail sales of products and all services. All other Federal taxes would be eliminated -- income and payroll taxes also.

It is estimated that 22 percent of everything we buy is required to pay the taxes assessed at the various levels. The idea is that if taxes are eliminated, prices decline by 22 percent and eliminating the payroll tax gives all employees an immediate near 10 percent raise.

Because the Fair Tax proponents believe no one should pay taxes on essential items -- food and clothing; everyone is reimbursed the tax paid on those items. No taxes would be collected except at the retail level but everyone would pay without exception.

The Fair Tax would be 23 percent.

Business, small and large, would flourish and workers would come out ahead. The underlying principal for economic stability is that individuals are the only ones who pay taxes. That is true because, generally speaking with agriculture as the exception, cost increases to business and imbedded 22 percent taxes get passed down to individuals. Eliminate the need for corporations to move capital offshore or shelter their profits, supply and demand competition rules, prices come down, business thrives, individuals win.

That is an oversimplified explanation of a great idea. It would be a step backwards to a time when everyone paid a little and no one paid a lot and a step forward to easing the tax burden of Americans and Idahoans specifically.

I continue to hear from individuals who are struggling with their businesses and their taxes. Individuals spend the majority of their working life just doing so to pay the taxes imbedded throughout their lives.

That must change.

Agriculture has always been the stabilizing force in our economy. Tourism, service industry and technology companies aside; we must find a better way to stabilize agriculture, protect our homes from over taxation, and strengthen small business and our communities.

New ideas for accomplishing that are frightening but the alternative is even more frightening to me. The status quo is not sustainable. Change will require that we acknowledge the existence of and difference between short and long term objectives.

A reminder -- I will hold public open forums Nov. 28 at Carmella's in Glenns Ferry and Nov. 29 at Carlos' Restaurant in Mountain Home beginning at 7:30 p.m.

Please contact me at timcordersr@gmail.com or tcorder@senate.idaho.gov.