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Friday, March 4, 2005
The Fair Tax

You can count me as a supporter of the Fair Tax. It would eliminate the current income tax system and instead charge a national sales tax. Unlike most sales taxes however, this is a progressive tax system. Every month everyone would get a rebate (or prebate) from the government that would cover what they are expected to pay in taxes on the necessities. Thus someone who makes only enough to pay for the necessities will pay no taxes at all. Those who make less will have a negative effective tax rate. As a person makes more they'll have a higher effective tax rate until the wealthiest are essentially paying the full 23% rate. A family of four making $25,000 would pay 0%. It would be 12% at $50,000, 17% at $100,000 and -23% at $12,500.

This system is revenue neutral, will encourage saving, will tax the black market and virtually eliminate tax cheats, will help our businesses be more competitive on the world stage and vastly simplify a confusing tax system bloated with loopholes and exceptions.

Posted by Rob Bernard on Friday, March 04, 2005 at 1:34 PM in Politics/Government
 
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