Fair Tax Provides a Fair Share for All


Fair Tax Provides a Fair Share for All

Empirical data proves minimum wages increase unemployment.  The ripple effect of this includes an increasing dependency on government, decreased economic growth, decrease in tax revenues, and increase in government debt. Free market capitalism is what made the US the great economic power and envy of the world.  Let our market economy work out prices and wages naturally.

There is another solution for those whose skills at present do not match a salary level at least up to the poverty level.  This solution is a major aspect of the Fair Tax (in Congress as HR 25).  The Fair Tax provides all with income up to the poverty level to offset its key measure which is consumption tax replacing our current tax system.  The Fair Tax replaces all personal and corporate federal income and payroll taxes with a revenue neutral consumption tax.  It is progressive because of its prebates to all up to the poverty level.  The Fair Tax also eliminates wasteful almost $1 trillion tax breaks which likely decrease our economic growth. The Fair Tax can be set up to fully fund all core entitlements plus more. The Fair Tax eliminates the IRS and $430 billion annual compliance.  Use that to pay down our debt.  Yes – technology exists where an IRS is no longer required.  The Fair Tax rewards success (income) and encourages more of this, thus generating stronger economic growth and more opportunities for all.  I encourage all to research the Fair Tax further in www.fairtax.org.

 

 

 

 

For those who

This is in response to Ronald Sobieraz letter against the Fair Tax.  The Fair Tax resolves some extreme problems with our current system.  At present our tax code requires $30 dollars of compliance and admin costs for every $100 collected in revenue from individual taxpayers.  Also almost $1 trillion of dubious at best tax breaks are rendered now that likely detract from GDP.  Finally the current tax code punishes success (income).  This depresses true GDP potential.

The Fair Tax eliminates these wasteful $1 trillion tax breaks. It can be set up to fully fund all core entitlements plus more. The elimination of $430 billion annual compliance costs further helps in this regard.  The Fair Tax rewards success (income) and encourages more of this, thus generating stronger economic growth.  It replaces all personal and corporate federal income and payroll taxes with a consumption tax.  It is progressive via prebates to all up to the poverty level.

It takes time and effort and careful analysis to truly appreciate a major change to our archaic tax code.  I encourage all to research the Fair Tax further in http://www.fairtax.org.

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About economics501

1 - free market Capitalist; 2 - Fitness Entrepreneur; 56 years old, VP at an Investment Bank in NYC, ex Venture Capitalist, happily married with 2 girls. Education: Rutgers and NYU. I allow Ted Hruzd, my friend to blog at will here. He has many posts here. I have known Ted since we were both students at NYU. Ted also works for an Investment Bank as a VP in Equity Global Markets. ------------------------- I was very very Socialist leaning as a 22 year old. I then strongly believed in Gov role in helping the poor. However, as a USDA Child Nutrition Programs, I personally accounted for millions of fraud, abuse, and waste of tax payer money. I came to believe that the poor would be best served with less Gov programs and more with direct aid via tax system. Then after 5 years I became a free market capitalist, was a venture capitalist in 2007 and helped start 2 high tech companies. I dedicate this site to champion free market capitalism as the best road to Prosperity. Please join in. If you disagree, fine, but please post with dignity and class and be civil. Argue with facts always.
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