Friday, July 07, 2006

Added "Fair Tax" URL to "Links"

There should, I believe, be wide agreement that the tax system in the United States is both needlessly complex and invasive.
I would expect liberal Democrats to join the most conservative Republicans and right-leaning Libertarians in that view (though not without exception, I'm sure). The "Fair Tax" plan proposed by Congressman John Linder (R, GA) ought to be on the table for consideration. In brief, the plan eliminates the IRS and all payroll taxes, replacing them with a consumption tax on all services and new goods. One striking feature of the plan is that it proposes a monthly (p)rebate to all U.S. citizens designed to reimburse (in advance) for the cost of the tax in maintaining subsistence. Live very frugally, and you can eke out a few dollars of welfare. Spend beyond the prebate amount (in taxes, that is), and you begin to pay taxes.
The plan is beautiful in its simplicity (as is the Flat Tax) but has the advantage of keeping the IRS out of people's business.
Since the plan has now been publicized for a time, it has been criticized and defended. The link I've provided updates quite a bit of information concerning the various criticisms and defenses.
I hope that people will look into it and consider it.

No comments:

Post a Comment

Please remain on topic and keep coarse language to an absolute minimum. Comments in a language other than English will be assumed off topic.