FairTax

I just finished reading The FairTax Book, and it put most of my questions to rest. Upon my return to Georgia, I heard about the FairTax and thought, "Great, another sales tax ploy. Didn't Alan Keyes run on that platform eight years ago? Why isn't this dead?" Then I saw that the largest crowd at the South Carolina Republican Debate was for the FairTax, so I broke down and did my own research.

Here's what I learned:

1. It is infinitely better than the current system. Perfect? No, but a huge improvement. And yes it will benefit my middle class income personal self. Why wouldn't I support something that helps me out? I believe it is called "rational self interest". I make no appologies for using that as a guide to make personal decisions.

2. It will close the loopholes people use to get out of paying taxes. I pay my share, so should everyone else.

3. It is NOT the national sales tax, which is regressive. I'm not going to explain it here. Read the book or go to www.fairtax.org.

4. The "Irish Miracle" grew out of low taxes, and I recently left a company due to offshoring, so the theory that no corporate taxes will boost business in the U.S. is plausible.

5. Before I read the book I always heard about how Congress is going to enact "windfall taxes" on the oil companies. I always cringed when I heard that because I knew that those taxes would only get passed back down to us, the consumer, through even higher prices. This books reinforces that belief.

6. The FairTax really is bipartisan. Take a look at the presidential candidates that support it.
i. Democratic candidate Mike Gravel. http://www.gravel2008.us/?q=fair_tax
ii. Republican candidate Mike Hucabee. http://www.explorehuckabee.com/index.cfm?FuseAction=Issues.View&Issue_ID=5

Bipartisan indeed.

I have written my Congressman and Senators, voicing my support for H.R. 125 / S. 1025 The FairTax Bill. The following is the response from Senator Chambiss (R-GA):

Thank you for contacting me regarding your concerns about the Fair Tax. It is good to hear from you.

On March 29, 2007, I introduced S. 1025, the "Fair Tax Act." This bill, if enacted, would uproot our current unjust progressive tax code and replace it with a simpler, fairer one by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax. I believe our antiquated tax code, that was implemented in 1913 and has since been modified numerous times, is overly complicated and desperately in need of an overhaul.

The Fair Tax, otherwise known as a national sales tax, would replace our current system which is based on annual income with a tax on goods and services. The Fair Tax is a consumption tax - the more you buy, the more you pay. The Fair Tax Act would repeal the individual income tax, the corporate income tax, capital gains taxes, all payroll taxes, the self-employment tax, and the Federal estate and gift taxes in lieu of a 23% tax on the final sale of all goods and services. The eradication of these taxes will not only bring about equality within our tax system, it will also bring about simplicity. Social Security and Medicare benefits would remain untouched under the Fair Tax bill; there would be no financial reductions to either one of these vital programs. And lastly, under this bill, every American would receive a monthly rebate check equal to spending up to the federal poverty level set by the Department of Health and Human Services guidelines. This rebate would ensure that no American pays taxes on the purchase of necessities. TheFair Tax creates a fairer, simpler code that allows every American the freedom to determine his or her own priorities and opportunities.

The Fair Tax creates a fairer, simpler code that allows every American the freedom to determine his or her own priorities and opportunities.

As always I appreciate hearing from you. Additionally, if you would like to receive timely email alerts regarding the latest congressional actions and my weekly e-newsletter, please sign up via my web site http://www.chambliss.senate.gov/

Please, don't assume you understand the FairTax. Research it yourself, and you too might even change your mind.

--Brad

PS
The FairTax Book is written by Neal Boortz and Congressman John Linder. I know Boortz can be a blowhard, but I urge you to look past his politics and focus on the substance of the book.

A few authors from the Ludwig von Mises Institute put forth good opposition points to the FairTax. From my brief readings it appears they oppose all tax reform and believe all focus should be on spending reform. Not a bad cause either, but I do not think spending reform has to be dependant on tax reform. http://www.mises.org/