Michele Bachmann Is No Dumbass

Michelle Bachman, from Hannity.comThe Wall Street Journal has a great piece on Michele Bachmann.

Highlights:

She also bristles at the idea, pushed of late by the White House, that the auto bailouts were a big success for workers and taxpayers. “We’ll probably be out $15 billion. What was galling to so many investors was that Chrysler’s secured creditors were supposed to receive 100% payout of the first money. We essentially watched over 100 years of bankruptcy law thrown out the window and President Obama eviscerated the private property interests of the secured creditors. He called them ‘greedy’ for enforcing their own legal rights….”

And the unions made out like bandits. A complete abrogation of the rule of law, property rights, and the Constitution. Little wonder that businesses and investors are hedging their bets until some degree of certainty as to the rules of the game is regained.

The 3.8 million-word U.S. tax code may be irreparable, she says, a view she’s held since working as a tax attorney at the IRS 20 years ago. “I love the FAIR tax. If we were starting over from scratch, I would favor a national sales tax.” But she’s not a sponsor of the FAIR tax bill because she fears that enacting it won’t end the income tax, and “we would end up with a dual tax, a national sales tax and an income tax….”

Although I’m not a fan of the Fair Tax for various additional reasons, Ms. Bachmann correctly identifies the biggest problem with the idea. The idea that the income tax will be repealed is laughable and naive.

Her big challenge is whether the country is ready to support deep spending cuts. On this issue, she carries a sharper blade than everyone except Ron Paul. She voted for the Paul Ryan budget—but “with an asterisk.” Why? “The asterisk is that we’ve got a huge messaging problem [on Medicare]. It needs to be called the 55-and-Under Plan. I can’t tell you the number of 78-year-old women who think we’re going to pull the rug out from under them.”

Agreed.

Read the whole article here.

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5 Responses to Michele Bachmann Is No Dumbass

  1. John Ward says:

    If you actually read H.R. 25 it suspends the income tax and sets in motion the repeal of the 16th amendment. If the 16th amendment isn’t repealed after 7 years, the FairTax sunsets. So there is no possibility that there would be both taxes at the same time. This is stated clearly in the bill, which makes me think Ms. Bachmann has never read it.

  2. songwroter says:

    I suspect she has, particularly since she used to be a tax lawyer.

    Even assuming that that particular bill was the Fair Tax version we ended up with, and even if there were verbiage in that bill that forbade income tax by another name from being collected by an agency other than the IRS (I don’t see it, but if I missed it please indicate where it can be found), it would not be binding on future Congresses, absent repeal of the 16th Amendment. Congress cannot bind future Congresses in any way–it would be un-Constitutional and duly ignored.

    Ms. Bachmann is correct.

  3. John Ward says:

    While there is no specific verbiage that makes it impossible for a coexisting sales tax and income tax (I mistyped above), there is language that makes it extremely hard for both to exist at the same time:

    SEC. 101. INCOME TAXES REPEALED.

    Subtitle A of the Internal Revenue Code of 1986 (relating to income taxes and self-employment taxes) is repealed.

    SEC. 102. PAYROLL TAXES REPEALED.

    (a) In General- Subtitle C of the Internal Revenue Code of 1986 (relating to payroll taxes and withholding of income taxes) is repealed.

    (b) Funding of Social Security- For funding of the Social Security Trust Funds from general revenue, see section 201 of the Social Security Act (42 U.S.C. 401).

    SEC. 103. ESTATE AND GIFT TAXES REPEALED.

    Subtitle B of the Internal Revenue Code of 1986 (relating to estate and gift taxes) is repealed.

    And:

    SEC. 401. ELIMINATION OF SALES TAX IF SIXTEENTH AMENDMENT NOT REPEALED.

    If the Sixteenth Amendment to the Constitution of the United States is not repealed before the end of the 7-year period beginning on the date of the enactment of this Act, then all provisions of, and amendments made by, this Act shall not apply to any use or consumption in any year beginning after December 31 of the calendar year in which or with which such period ends, except that the Sales Tax Bureau of the Department of the Treasury shall not be terminated until 6 months after such December 31.

    You are right that future congresses will not be bound by the repeal of those taxes less a Constitutional amendment, but it does three thinks that effectively cripple the income tax:

    (1) it abolishes the IRS,
    (2) it repeals all statutory language having to do with taxing income and payroll (i.e., the Internal Revenue Code), and
    (3) it eliminates the filing of annual income tax returns to the federal government for over 140 million Americans.

    Once those things are done it would be political suicide to try to put an income tax back in place. I don’t thik the people would stand for it. The system as it stands now is immoral and unsustainable, creates class warfare, sends jobs overseas, and makes us uncompetitive with the rest of the global economy. We have trillions in wealth sitting in offshore accounts that would be brough back for investment here.

    It is not a perfect system. I don’t know of any system of taxation that could ever be perfect. But it’s a hell of a lot better than what we have going on right now.

    If Michele Bachmann supports the FairTax, that gives her a ton of credibility in my opinion.

  4. songwroter says:

    I’ve read it. And analysis about it.

    I will not trust politics to tamp down a national sales tax once that Pandora sees the light. Will happen anyway, but I will certainly not support it, whether it comes from Left or Right. I am frankly surprised at the popularity of a People For A Perfect World Big Dot Gov “solution” among conservatives, which FairTax most certainly is. I detect the odor of populism, which I abhore.

    Flat tax (with a floor–”skin in the game” does not make sense at very low levels when we are trying to create a rising tide). At the very least, my FairTax friends should support that as an interim to their Elysian Fields. Y’all are, forgive me, hope and change right now, and I’m not in the mood–and neither are most likely voters.

  5. John Ward says:

    We’ve already had a flat tax. That’s what our current system started as way back in 1913. We still have an IRS, our productivity is still being taxed, we are still paying payroll tax, corporate tax, death tax. Once people complain about it’s regressiveness, there will be tax brackets again. I suppose if you like the status quo, the flat tax is for you.

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