Changing the tax collection METHOD does not alter the economy one iota. Spending and entitlements are the problem not tax collection. Further, those that assert that their favorite form of taxation will “limit spending” are only fooling themselves. Congress can continue to spend and borrow as much as they want. Tax collection has no impact on spending.
I would prefer to see representative apportionment where the tax amount to be collected is then passed on to the state. 50% of the tax bill is assessed as a per senator bill and the remaining 50% is assessed as a per representative bill. States can then decide for themselves the best way to collect taxes. For some, that might be a sales tax, others property taxes, etc. Each state can then decide what works best for them. As an enforcement, the penalties for not making tax payments from the state to the federal government start with representatives losing their votes in committee and goes up from there.
The Fair Tax is a wrong headed sales tax that will do as much damage as any other tax.
Look at the way cash moves through the nation. Money flows into the hands of individuals (or companies) and out of their hands. If we do not capture a bit of this flow (in both directions), we will find the individuals (or companies) going offshore for the other side of the transaction.
eg, if you abandon income tax, in favor of a 28% sales tax, then people will make all the money here, and spend it on internet purchases from other countries. Oila’ NO REVENUE and damaged economy.
If you abandon the small sales tax, then people will attempt to earn money elsewhere and will spend it here. Oila’ LOW revenue and damaged economy.
We need a small sales tax and lower income tax. Then, consumers and earners will both participate in the cost of running this gigantic enterprise.
This Fair Tax thing seems all well and good on paper, it may even work. But, I don’t think “We the People” stand a snowballs chance in hell from ever getting away from the unlawful income tax imposed on us by the Feds.
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Anything that would abolish the IRS, stop taxing my productivity and capture monetary transfer from the illegals/criminals flying under the radar.
Oh, did I mention....tax the crap outta money transfers to foreign nations?
The majority of the politicians in Washington don’t want to fire up the economy so the fair tax has no chance. We have no chance to change the majority of the politicians in Washington so long as the majority of Americans hold a philosophy that holds production and free trade as evil.