04 November, 2006

A Fair Tax Plan

A FAIR TAX PLAN | Daily Policy Digest | NCPA:
"Junking the current tax system in its entirety would create a modestly graduated tax system with a very broad base - consumption -- says economic columnist Scott Burns.

By replacing both the income tax and the employment tax (among others) with a single sales tax, we would accomplish these good things:

* Eliminate the fastest-growing and most regressive tax in our lifetime -- the employment tax.
* Massively broaden the tax base from only some income to all consumption.
* Eliminate the corporate income tax and the entrenched, corrupting lobbies that it has engendered.
* Make visible, for the first time, the size of our collective tax burden.
* Save the incredible amount of time and money wasted on tax planning and scheming.
* Create a path for dealing with the unfunded liabilities of Social Security by increasing the tax base that supports it.
* End the biannual festival of finger-pointing and envy that has become the hallmark of every election cycle.
* Remove the embedded expense wedge that reduces the competitive position of American-made goods.

The Fair Tax proposal calls for giving all households a so-called pre-bate of what they would pay in sales taxes for the necessities of life. The pre-bate would be paid to households monthly, eliminating the burden of taxes on our poorest families."

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