Let's Be Fair
In thinking about our upcoming Tax Day Rally, check out this op-ed from the Richmond Times-Dispatch describing some of the benefits of the FairTax. It originally ran in December, 2007, so the figures included are a little dated, but the principles are still sound. Here’s an excerpt:You don’t have to read the 60,000 pages of federal tax code, rules, and IRS rulings to know they’re an abomination—you are reminded of this every April 15th. And if you’re like me, you wonder why you take great pains to comply with the absurd tax code when others—including some of the wealthiest criminals in America—simply ignore it and underreport their taxes (or don’t report them at all), forcing honest taxpayers to make up the difference.You can read the entire op-ed here.
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John was wrong then and he is still wrong! When comparing taxes paid under current law and the Fairtax, he overlooked the EITC. When that refundable tax credit is factored in, that family of four earning $27380 would pay no net tax under the Fairtax and would get a net tax refund of $1530 under current law. They are better off under current tax law!
The tax code is the preferred vehicles used by CONgress to give out hidden favors in exchange for “campaign contributions”, in the quid-pro-quo know as the Potomac Two-Step. That is, at least when they’re not outright robbing us in plain sight with stuff like TARP.
A flat tax would help eliminate this.