Your claim that the FairTax would have little negatives and a lot of positives is patent nonsense. You use income percentages of the population to prove the benifits of the FairTax that are misleading. Example: "The bottom two-thirds will pay less". I would dare to say that the bottom ten precent would pay considerable more. They pay little income tax now because they have such low wages. I would dare say their savings rates is barely measurable, and they spend most all of their income on obtaining the necessities of life. What effect is a 30 percent sales tax going to have on their living standards?
As far as the top third I have a hard time believing that they will not save with the so called "fair tax", I'm in the top third. It would encourage me to save more and consume less, thus having an depressing effect upon the economy when multiplied by millions of others.
And if most everybody is saving money with the proposal as it stands the government must be taking in considerable less money. What programs do you propose to cut to make up the difference? My guess would be those that effect the bottom ten percent the most, as they are ignored in your article.
No, I don't think the FairTax is fair or has any positive benefits to offer the country.
---
If you'd like to ask a question about the FairTax or leave a comment, please use the feedback form.
