In essence, the FAIR tax is a consumption tax with a gimmick to make people think that it would be a good deal; it would not be. A consumption tax hits lower income taxpayers harder proportionately than the rich because we must spend all we earn and see it taxed while the wealthy save a substantial portion of their earnings. The gimmick included in the FAIR tax is a rebate from the government of the FAIR taxes paid by lower income Americans up to a certain amount. Proponents of the FAIR tax claim that it could replace the income tax, the inheritance tax, the capital gains tax and payroll taxes and eliminate the need for the IRS.
It is my firm belief that if the FAIR tax were enacted and the IRS and other taxes eliminated, then the rebate for lower income taxpayers would gradually or quickly be phased out. The entire purpose of the FAIR tax, in my humble opinion, is the elimination of the graduated income tax. Once that is gone, there will be no way to finance Social Security and other government safety net programs. I don’t like taxes and the IRS either, but the graduated income tax is the fairest tax there is.
- Huckabee Presses for National Sales Tax (blogs.wsj.com)
- America’s mad circus (proseandthorn.wordpress.com)
- Circus Time (blahx32.wordpress.com)
- Mike Huckabee: Get rid of the IRS, start a U.S. retail tax (chron.com)
- There is No Such Thing as a “Fair” Tax| The Post & Email (gunnyg.wordpress.com)
- Video: What is the Fair Tax? (turbotax.intuit.com)
- Even More Benefits of the Fair Tax (econprofessor.wordpress.com)
- Gary Johnson: Let’s Default! It’ll Reboot Business! (crooksandliars.com)