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.
> “Changing the tax collection METHOD does not alter the economy one iota.”
The FairTax will tax spending in the USA and its territories. It will not tax US exports!
That means that American goods and services can be priced at 20% to 30% less to foreign buyers. This fact alone will revive American manufacturing and provide a bolus of +10% GDP growth in the first year of enactment.
America was once the economic engine of the world for quality goods. We Americans set the standard but since WWII our income taxes have crept up from below 10% to more than 30%. The result has been a shelving of our way of life and a comatose economy.
Even if we were to return to the tax policies of the 1950s, the tax system ALWAYS grows back like a cancer to what we have today. With the FairTax tax code, that can’t happen!
Read here and Study UP!
http://www.fairtax.org/site/PageServer?pagename=about_faq
The method does matter. First, the income tax imposes a deadweight economic loss on the economy that may be as much as $400-$500 billion. Second, the civil liberties cost of the income tax is incalculable and utterly incompatible with a free society. Third, an income tax lends itself to political corruption to a far greater extent than the Fair Tax.
Nevertheless, you are entirely right that even with a Fair Tax the government will continue to spend and borrow as much as they can get away with and then some. The Fair Tax isn’t a solution to the spending problem. We need a Congressectomy and a Governmentectomy to accomplish that.