Neal Boortz Explain the FAIRTAX
The Talkmaster announced today that he will be retiring in January of 2013. And so we thought we would include some video of him plugging the Fairtax.
For those of you don’t know the Fairtax would replace the graduated income tax with a consumption tax somewhere around 22 percent with certain necessities exempted from taxes altogether. The upside would be that everyone consuming .anything would have to pay into the system. The “poor” would be able to maximise their property by not being frivolous. That the price of goods would necessarily drop because there is already a 20 to 38 percent consumption tax built into every item we buy. People could keep all of their income. Savings would be rewarded. Investment capital would be freed and put into the market. The government would have less power to manipulate our decisions.
The downside (so far as I can see it) . . . First that it is revenue neutral, I want to decrease what the government spends not keep it at current levels. The best way to do this is to starve it. The notion of pre-bates (to cover those items exempted in the tax system) seems messy and might necessitate another bureaucratic behemoth. Without an income tax it might seem to the Chinese that there was no longer the collateral on their investment (namely the future confiscation of labor) and they might move to divest themselves of our debt. At some point some politician will discover how to reinstate the income tax and then we will be doubly taxed.
For more in for (and of the much better sort than I have provided). See the folks at Fairtax.org.