Opposition to the Fair Tax
The FairTax
Summary of Opinion – Oppose FairTax
1. Will transfer tax burden from upper class to middle class
2. Will negatively impact housing market and charities
3. Will create huge underground economy and will lead to higher rates on consumption than predicted
4. Will not abolish IRS, but rather require increased government monitoring to ensure tax compliance
5. Not enough evidence of practicality and beneficial results of FairTax to justify risks
Pretty much everyone would agree that our current tax system is almost comically complicated, and that it is difficult if not impossible to accurately enforce. Despite evidence that the top 5% of earners pay about 60% of the income tax, many Americans readily believe that there are a myriad of ways the wealthy can take advantage of our byzantine tax system to pay less than their fair share. The widespread belief that our tax system is full of loopholes and caters to the special interest and the wealthy is a powerful driver for the immense public support for an overhaul of our current tax structure into a simpler and fairer method. Many tax reform methods have been proposed and fostered by this ravenous public appetite for a simpler and seemingly fairer tax method and the FairTax is the latest tax reform flavor of the month in terms of gathering attention and engendering support.
One main reason for the popularity of the FairTax is its simple and straightforward concept; income will not be taxed but new purchases will be. This has great appeal to many Americans for numerous reasons, such as having more control of their taxes paid, avoiding the tedious, laborious, and often expensive tax filing process, and that all Americans will pay the same tax rate. Of course, like most topics involving political and monetary issues, the truth of the matter is far different than the information that filters down to the public.
The only real “fair” aspect of the FairTax is its name. In reality, the main impetus for its
Summary of Opinion – Oppose FairTax
1. Will transfer tax burden from upper class to middle class
2. Will negatively impact housing market and charities
3. Will create huge underground economy and will lead to higher rates on consumption than predicted
4. Will not abolish IRS, but rather require increased government monitoring to ensure tax compliance
5. Not enough evidence of practicality and beneficial results of FairTax to justify risks
Pretty much everyone would agree that our current tax system is almost comically complicated, and that it is difficult if not impossible to accurately enforce. Despite evidence that the top 5% of earners pay about 60% of the income tax, many Americans readily believe that there are a myriad of ways the wealthy can take advantage of our byzantine tax system to pay less than their fair share. The widespread belief that our tax system is full of loopholes and caters to the special interest and the wealthy is a powerful driver for the immense public support for an overhaul of our current tax structure into a simpler and fairer method. Many tax reform methods have been proposed and fostered by this ravenous public appetite for a simpler and seemingly fairer tax method and the FairTax is the latest tax reform flavor of the month in terms of gathering attention and engendering support.
One main reason for the popularity of the FairTax is its simple and straightforward concept; income will not be taxed but new purchases will be. This has great appeal to many Americans for numerous reasons, such as having more control of their taxes paid, avoiding the tedious, laborious, and often expensive tax filing process, and that all Americans will pay the same tax rate. Of course, like most topics involving political and monetary issues, the truth of the matter is far different than the information that filters down to the public.
The only real “fair” aspect of the FairTax is its name. In reality, the main impetus for its