Mercer University Professor of Political Science Dr. Greg Domin will join us during the 2:00 hour today to discuss the debate.
The real star of last night's debate was "Joe the Plumber," which McCain rightly used as criticism against Obama's plan to raise taxes on the evil rich. Joe Wurzelbacher is the guy who doesn't like Obama's plans to raise taxes on the rich, and when he asked Obama about it the Messiah told him it is better to "spread the wealth around." Joe has been making the rounds on TV today, including an appearance on Good Morning America in which he used the s-word that John McCain should have used last night: socialist. After Joe the Plumber starred in last night's debate, Joe Biden went on the Today Show this morning and questioned his credibility and his claim that he makes over $250,000 a year (then he went to his lesson on how to count).
The Democrat Senatorial Campaign Committee is running an ad on behalf of Jim Martin blatantly lying and demagoguing about the FairTax. Here's a column about how and why the FairTax could have prevented the economic mess, and how it could get us out of it.
Guess who is giddy about the economic downturn (other than Democrats, who smell Republican blood in the water over it)? The Communist Party USA, who remember has half-endorsed Barack Obama.
The Messiah is planning a huge party in Chicago for election night. He wants as many people to be there to worship him on his coronation night as possible.
Pennsylvania Democrat John Murtha says that even though his district is racist, Obama will win there anyway.
The Ohio Secretary of State is going to the United States Supreme Court to challenge a requirement that she actually do her job in verifying that the people registered to vote are actually eligible to vote.
With the federal government forcibly bailing out big banks, smaller banks are none too happy that their competition is now federally subsidized.
Governor Perdue is allowing local school districts more control over their budget. It's about time.
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FairTax CON:
An existing rental property, at time of sale, is "used property" and theoretically should be exempt from FairTax, especially considering the established accounting principle (per AICPA) that the properly valued sale price of a rental property is equal to the present value of the future rent stream. (I have also argued, unsuccessfully, that under this principle, the FairTax has already been paid on existing rental properties, and thus a forward rent stream should not be taxable.) However, under the FairTax, an exception is made for rental property, and the buyer (new landlord) receives a "rebate" (not to be confused with the universal household "prebate") of the entire FairTax calculated on the purchase price. (I believe that the seller (old landlord) pays FairTax on the sale price of the property when he sells it - remember that since he received a "rebate" of the property's FairTax when he bought it, his tax basis is zero.) Thus, the tax basis of the property (one more time, in a resale) becomes zero, allowing the tax to be collected on the entire rent stream.
I have also noted that in roughly half the states, property tax structures are two-tiered, with rates (effective or nominal) on rental property higher than on equally-valued primary residences, and that since renters pay these embedded taxes (which will of course not go away under the FairTax); in these states, the FairTax represents a tax on top of a tax on top of a tax.
Worse from a free-market perspective, the higher property taxes on rental property distort the market and reduce the supply of rental property below that which would exist under level (single-tier) property taxes. (When a home goes on the market, an owner-occupant can bid more than a landlord, because the owner-occupant's property taxes - and thus monthly payments - are lower.)
At the very least, FairTax supporters in states with two-tiered property taxes have a moral and ethical responsibility to level the property tax field in their respective states.
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