I know the arguments for it, but I’m against the “Fair Tax” for the simple reason that politicians would use it to hide all kinds of taxes, until you’re paying more for tax than you pay for the actual product. This is the case with gas taxes—when people pay $2.50 for gas, they think most of it goes to the oil companies, when the fact is that the tax can be half the price or more, depending on the state. I’ve no doubt that a “fair tax” system would tack on all kinds of hidden taxes, so that people would have no idea how much they are actually paying in taxes.
I’d like to see a flat tax—one rate across the board, with a few simple deductions, so that people can figure out their own taxes and see exactly how much they fork over.
The problem with the flat tax is what it would apply to, which would presumably be your income. And in that case, how do you report it to the government?
So even with a flat tax, you still have the IRS sitting in your living room 24/7.
The Fair Tax doesn’t even let them in the door.