Fair Tax

Apr 8
10:41

2008

Myron Gushlak

Myron Gushlak

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It’s almost tax deadline time again and that thought runs through the minds of millions of Americans. The “Fair Tax” proposal is an interesting altern...

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It’s almost tax deadline time again and that thought runs through the minds of millions of Americans. The “Fair Tax” proposal is an interesting alternative.  It got a lot of play when Huckabee was still in the Republican race. Some say his support for the Fair Tax was the reason he won both Iowa and Georgia during the early primary season. The idea took flight,Fair Tax Articles briefly, before coming back to earth. But it attracted a lot of attention while it was still being floated.  The idea has merit. In a sentence, for those unfamiliar with it, the Fair Tax plan would eliminate all personal and corporate income taxes, payroll taxes and estate taxes and replace them with a national sales tax.

Economists have long believed that taxing people when they spend is a better way to raise money than to tax them when they earn.  The flat rate (suggested at 23%) would eliminate the inequities in the current tax system, where very often people or companies making the exact same amount of money pay vastly different portions of that money in taxes. The Fair Tax would also bring those making money illegally under the tax umbrella. The effective tax on the illegal drug industry could probably pay for the Iraqi war on its own. The vast underground economy would begin to make a contribution to the pot. The most negative thing I heard about it was that the idea originated with the Scientologists, which somehow seemed to relegate it to the far fringes of good sense. You would be surprised, however, to see how much learned support the idea has garnered.  

I’m far too pessimistic to believe that an idea like that could ever take hold.  It’s far too extreme for the vast portion of Americans who would rather embrace their current tax burden rather than to try something new. I wonder what it would take to really make it happen. Perhaps that special type of man, who has the ability to bring the masses around to his way of thinking, you know - a leader, like in history.  

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