Recently, I purchased "The FairTax Book" out of curiosity and found that it was actually an interesting book to read.
As the name of the book suggests, it deals with the FairTax legislation (HR 25/S 25), a bill which is sponsored by Congressman John Linder. This nonpartisan legislation is a proposal to abolish all federal income and payroll taxes, replace them with a national retail sales tax, and finally repeal the sixteenth amendment of the US Constitution (The Income Tax Amendment).
In essence, the FairTax legislation would only tax you on the things that you purchase instead of how much you earn. It is hailed as a fair and efficient tax system which is also revenue neutral so the cost of goods will not change that much and the government still gets its money.
After reading about it, I find that I am actually in favor of switching to this tax system as it appears to make much more sense than our current one.
If you live in the United States, what are your thoughts on this legislation?
Comments
Fair Tax
I am not sure I can agree with such an idea (without having read the book at least). Sure I would get rid of the federal income tax, but that would not do anything about the State Income Tax, the property taxes (from the state and the city), or the state sales tax that can be pretty high in some areas (for example, here in Virginia somethings are taxed at 5%, while others are taxed at 12%). I am actually afraid that we would end up paying more over all. Also, in my opinion, a federal sales tax would punish those who are more acquisitive than those who live frugally. Why should your debt to the government be determined by how much you wish to buy?
Personally, I have always been a big proponent of a "flat" tax rate income tax. Why should the percentage of what I pay in taxes be based on how much my income is.
Just my two cents (untaxed so far).