Fair Tax

The fair tax sounds like a reasonable proposal to me. At first glamce it seems like the federal sales tax would be very high on all consumer goods and services. Many taxes we pay are not apparent and therefore we tend to look only at the income taxes we end up paying each April.
We are aware that the "rich" have tax accountants who are able to find loopholes in the very complex tax codes that are not available to the poor and lower middle class. I am hoping that more bloggers with backgrounds in economics will take a serious look at the Fair Tax proposals.

Since States Income Tax forms use information on the federal 1040s it would be helpful to know how the funding of state governments would be achieved. What state sales tax would be tacked on to the Federal Fair Tax? How much would current state sales taxes be increased if state income taxes ceased?


United States Congressman - John Linder: "Washington, D.C. - On July 28, the Subcommittee on Select Revenue Measures of the Committee on Ways and Means held a hearing on various tax reform proposals sponsored by Members of the U.S. House of Representatives. The hearing focused on tax reform proposals that satisfy the President's objectives of fair, simple, and growth-oriented tax reform. Congressman John Linder (R-GA), a member of the Ways and Means Committee, testified in front of the Subcommittee on his personal consumption tax proposal, H.R. 25, also known as the "FairTax."

"The President's Advisory Panel on Federal Tax Reform has been gathering testimony throughout the country and it is becoming clear to all � finally - that the current code is unfair, undermines economic growth, and places a tremendous burden on American workers and businesses," Linder said. "America needs a tax system that is fair and simple, protects the poor, treats all Americans the same, and is easy to understand. Just last week, the President's Advisory Panel on Tax Reform, with the help of the Treasury Department, concluded that the FairTax is the only reform proposal that completely untaxes the poor. "

I am hoping that more information becomes available.