|I talked with a voter today, actually it was my friend Earl, about the Fair Tax. |
For the uninitiated, the Fair Tax is a proposal to replace the income tax with a national sales tax of 23 percent on new items. To help people pay for basic necessities whose cost would be increased substantially by this, every household would be sent a rebate check every month. The amount would depend on the size of your household and if I recall correctly my wife and I would get a check every month for $450 or so.
I applaud everyone who supports the Fair Tax because they believe our income tax system needs overhauling. So do I. I favor the flat tax, but all we are doing is quibbling over details.
I have three objections to the Fair Tax, all of them having to do with the rebate check.
First, do we really want every American family waiting by the mailbox every month for a government check? No, we don't This is bad for morale. America is not about hanging around the mailbox waiting for a government check. It is about utilizing your time and talents to make something good happen for yourself.
Two, it's a government program handing out money. Does anybody really believe this will not be a magnet for fraud? Of course it will. Don't kid yourself.
Three, if the government needs to subsidize our paying of a tax in advance, the tax is probably excessive and shouldn't be levied in the first place.
I favor a flat tax of no more than ten percent on citizens and even less on businesses. In fact, on the theory that business taxes are merely passed on to the consumer, I am open to eliminating the corporate tax, just as I would ultimately like to do away with the income tax.
A flat tax would give individuals more money to spend and business more money to meet our growing demands. They could hire workers and pay them better wages. It would also mean our income taxes could be filled out on a single sheet of paper.
Yours In Liberty,