I agree that politicians will only do the right thing after exhausting all other possibilities, but the Fairtax HR25 begins with the stipulation that it doesn't happen untill the income and other federal taxes are ended and made illegal. Please read the entirity and help bring this issue to the fore as we approach the first opportunity in 50 years for serious tax reform.
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The fair tax is a great idea! It would make the united states the worlds greatest tax haven.Imbedded taxes (corporate taxes passed on to consumers) raise the cost of items by up to 25%, if you remove these imbedded taxes the cost of goods will probably be no more expensive than they already are (therefore we really aren't paying any tax since the 23% tax is made up by the fact the product is 23% cheaper!). Exports are not taxed so now we can finally compete on the world market by selling goods up to 25% cheaper (imbedded taxes) than they already are!
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Good review of the pros and cons of the Fair Tax proposal. Being an FDR Democrat who was raised believing that "taxes are the cheapest rent we pay to live in the greatest country in the world," as my grandfather used to say, and knowing that a sales tax is traditionally the most regressive, and thus, unfair, way to tax I was skeptical of Fair Tax at the outset.
I am trying to honestly evaluate it, however, as this is what all Americans should do to reach better win/win solutions. And if it were in fact capable of: 1) delivering necessary revenues 2) in a way that is not MORE burdensome on the poor and middle class, 3) and that will vastly simplify payment, reporting, andcompliance costs...then it just may very well be a better solution.
While that verdict is still far off in my personal analysis, I continue to research and analyze. At this point I tend to agree with your assessments, which mirror those of William Gale. There is no gaurantee at all that Fair Tax will generate sufficient revenue, that it won't unduly burden the poor and middle class, and that compliance and evasion won't be major problems.
A better approach might be a focused effort at simplifying and streamlining our current system. With dedication and good will this is most doable.
Thank you for your coverage and continued success.
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