Saturday, January 26, 2008

If It's Broke.... Fix It.



Mike Huckabee wants to replace the payroll and income taxes with the FairTax... a consumption tax on purchases. American-made goods would be taxed once - at the point of sale - rather than every time an employee (with their embedded payroll taxes) touches them. Illegal immigrants would join the tax base - paying tax like the rest of us for everything they consume. No more would America penalize productivity and savings. A monthly "pre-bate" check would be issued to every citizen up to refund to them the tax they'll incur for the poverty level of spending in the month, so the tax burden not only remains lighter on the poor - it goes away completely for many. The FairTax is designed to be revenue-neutral - the amount of money brought in would not change - but the removal of the hidden taxes built into all the goods we buy would put lots of buying power back into our economy.

What's wrong with this idea? The establishment opposes it. Many people with vested interest in the status quo are made nervous by it. They prefer the complex tax code we have now. Do you?

I don't. Mike Huckabee does not.

No comments: