Here are compelling reasons to reject the Fair Tax.
First: the Fair Tax is a consumption tax… a retail sales tax… that is meant to replace the personal income tax. Nothing wrong with that idea. The tax is levied as a percentage of the amount of a purchase transaction… when you buy something. But they want this sales tax to be a 23% tax! That’s 23% tax independent of any state or local sales tax. Here in Georgia, that would mean 23% plus between 5% and 8%, depending on the county or city your transaction would occur in. In the City of Atlanta, you would face a total tax of 31%! Make a $100 purchase and add another $31 of tax.
Second: The cheerleaders say the Fair Tax is “revenue neutral.” That means the Federal Government would collect roughly as much revenue with the Fair Tax as with the income tax. NOTHING is said about cutting Federal spending one dollar! Shouldn’t THAT be talked about BEFORE changing the method of taxation?
For the complete story at Militant Libertarian, click here.