Many people would have you think that the fair tax, a national tax replacing the income tax and payroll tax, would really hurt your life because all of the sudden you would not have the same spending power.
This could not be further from the truth for two reasons.
The first overwhelming fact about converting our system to a fair tax is the vast amount of wealth and jobs that would come back to the United States. It is estimated that 17 trillion dollars now live in off shore banks to avoid our "success punishing" system. Our progressive tax, as it stands now kills the incentive for success by taxing the wealthy that create business. ( an economic side note, this was proved by the Laffer curve which is in just about every economic text book.)
This new wealth effect that would be hastily returned to us banks would cause a lending "promise land", but instead of milk and honey, dollar bills would flow. It has been proven that the wealth effect would lead people to spend and save more. This savings and spending would both bolster the dollar and lead to the same tax base that is found now.
I urge you to check out their website at www.fairtax.org. Oh yeah, fyi close to 80 Congressmen and 2 Senators are behind this already!
Friday, April 4, 2008
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