The Classic Liberal Blog

Well ... SU-PRISE! You do!

We've talked about Representative Ron Paul a few times, but there's another man from Texas sticking up for you too!  And he's even a Republican!

Drum-roll please ... let's have a warm round of applause for Representative Louie Gohmert!

There's an idea that's been floating around my mind among many, concerning taxes and the bailouts.  In regards to some thoughts on income taxes is the idea (that I haven't had time to research) that instead of turning on the printing presses to create money out of thin air (devaluing the dollar and thus bringing a massive wave of inflation), why not just stop collecting income taxes?

So last night, while catching up on the latest articles from Uncle Ted I had yet to read, he introduces me to Gohmert and his Tax Holiday Bill!

Now, I trust any given politician about as far as I can throw an Ford F-450 Super Duty pick-up truck, and let's face it, Arnold Schwarzenegger and Hulk Hogan together in their prime couldn't pick one of these bad boys up, let alone throw it even an inch ...

Anyways ... there's no such thing as a perfect politician, because there's no such thing as a perfect person.  In light of that, I focused on his voting record in regards to the Big Bank Bailout, and was happy to find that he voted against it all the way!  So with that in mind, let's take a look at his latest proposal.

On January 6, 2009 Gohmert introduced H.R. 143, a bill "to amend the Internal Revenue Code of 1986 to provide for a two-month suspension of employment and income taxes, and for other purposes." Gohmert advocates that taxpayers don't pay any income taxes for 2008 as well. I like this!

The federal government is going to have a whopping trillion dollar plus deficit on it's hands regardless of what "action" they take, so instead of pretending that printing dollars for politicians to pass around and buy votes to increase their power accomplishes anything, why not just keep the hard-earned income in the hands of those who earned it?  The American taxpayers!

As Dave Mustaine says, "it's still 'we the people', right?"

Wanting to get more detail on how something like this would work, I stumbled across the teriffic essay, "Why Obama's Stimulus Plan Will Fail... And A Better Alternative," by Jake Towne. He's done his homework, and provides the details for us.

Let me explain go into some detail. If you check the 2008 White House budget, you will find that total planned government outlays were $2.9 Trillion. (pg26/342). Total receipts were $2.5 Trillion, so the planned deficit was $0.4 Trillion, although $0.8-1.0 Trillion will be added due to last year's bailout nonsense. Also, if we recall that the total size of the bailouts is now close to $8 Trillion, a $1.2 Trillion income tax refund begins to look fairly "cheap."

2008 Receipts (pg35/342) -
$0.35 Trillion from corporate income taxes
$1.2 Trillion from federal income taxes
$0.9 Trillion in Social Security, Medicaid, Medicare, etc.

Total $2.5 Trillion

Now, what if Obama (and don't forget Congress) would do the unprecedented, and instead of spending $775 Billion we do not have, decide to not collect income taxes due this April?

Each individual will then naturally make the best decisions for themselves, whether it is to save, pay down debts, or spend on desired goods and services, which would create more jobs.

There is no cost to pay government to administer the Obama-Biden Plan.

There is no need for the government to spend most roughly $15 billion in IRS spending and tax preparer fees, although rebate checks for the amounts currently withheld would need to be mailed. (source)

Many of the IRS's 92,000 employees and many tax preparers can be fired. While this would add to the total amount of unemployed, their jobs are NOT AT ALL economically productive, so our total production will not suffer. In fact, when they return to work, our overall production will be boosted.

Of course, we know there's not a snowball's chance that Congress and the Obama Administration would even consider such common sense, after all, they're marching full-force to secure their power, by "re-making America" into a socialist nation.  But it sure is nice to know there's a few people in Washington that "we the people" can count on!

It's also a strong reminder that the fight is far from over too!

Congressman Louie Gohmert's Jan. 6, 2009 Press Release:

Gohmert Continues Bailout Fight with New Tax Holiday Bill

"Overwhelming Support from Across the Nation has made
Clear that this Fight is Far from Over"

WASHINGTON, D.C. - Representative Louie Gohmert (R-TX) wasted no time in continuing his fight against Washington's excessive bailouts as the 111th Congress convened today for its first day of session. Moments after the House opened for official business, the Congressman introduced an updated version of his two month tax holiday proposal that gained extensive national support over the past month, clearly signaling that he intends to push the issue until the majority party brings this bill to the Floor of the House for a vote.

Whereas Gohmert's original bill called for the holiday to take effect during January and February 2009, his latest version designates the two month time span to begin the first full month after the bill's passage, thereby allowing the proposal to still be a viable bailout alternative even though the new year has begun. Less than one full day into the new Congress, the legislation already has fifty cosponsors, and the list of supporters is expected to grow.

Gohmert stated, "From the overwhelming number of voices across the nation that have expressed their support for this tax holiday, it is clear that this fight is far from over. Americans are fed up with chunks of their paychecks going to bail out mismanaged, private companies. My bill will provide relief to taxpayers and do a better job of stimulating our economy by letting the people who know the market best decide which companies or industries are most deserving of their hard-earned dollars.

"I voted against the bailout both times it came to the floor. I believe it was a terrible plan that undermined the founding democratic principles that made us the greatest nation in the world. There is still time to put to better use the remaining $350 billion of bailout funds. Americans have done a terrific job of letting me and their own representatives know that they want this tax holiday as a bailout alternative, and they must continue to make their voices heard if we want to see our country thrive and preserve its strong, free-market principles."

Gohmert is encouraging people to urge their own Representatives and Senators to support the tax holiday over more bailouts and has also asked them to take it a step further by letting their leaders know what they could be doing with the extra money they would save through the tax holiday plan. According to American Solutions, a conservative think tank founded by former Speaker of the House Newt Gingrich, Americans pay $101.6 billion per month in personal income tax and $65.6 billion per month in FICA tax. A two-month reprieve from these taxes would cost less than the remaining $350 billion in bailout funds sought by Paulson and provide taxpayers with a nearly 17% reduction in income tax for 2009. Under Gohmert's plan, the ordinary income from wages or services performed in the two months designated for a tax holiday would be entirely federal tax free, and Americans would immediately see that money retained in their paychecks. They would therefore only pay income tax on 10 months of earnings.

Rep. Gohmert currently represents the First District of Texas for his third term in the U.S. House of Representatives. He can be reached at www.gohmert.house.gov.