I disagree with a substantial portion of what Neal Boortz explains in this piece. THERE IS A FREE LUNCH IN THE FAIR TAX ACT! The free lunch comes from ridding our tax system of the tremendous inefficiency of the income tax. That inefficiency costs about 90% of the $300+ Billion per year expended by Americans for compliance with the tax system as it now exists. THE FREE LUNCH WILL AMOUNT TO THE ECONOMIC EQUIVALENT OF $250 BILLION/YEAR IN TAX CUTS - THE LARGEST AND MOST BENEFICIAL TAX CUT IN HISTORY - SIMPLY BY THROWING OUT THE STUPIDITY OF EXTREME WASTE OF MANPOWER REQUIRED TO COMPLY WITH THE PRESENT TAX SYSTEM. That will enable a net gain in the economic growth rate not less than 1-2% per year, which will be sufficient to pay the costs of Social Security reform and more.
All the quibbling over exactly what happens to the repealed income and payroll taxes (whether they go back on the paycheck - which I think they will do in 90% of cases) or are recaptured by the employer through negotiated salary reductions does not amount to a hill of beans. Let's keep our attention on the big picture, which is MORE than enough to justify entirely adoption of the Fair Tax Act of 2005 as real tax reform.
Good post, n-tres-ted. Right on target!
A lot of people don't see that at all apparently.