Jan 24, 2023·edited Jan 24, 2023Liked by Chris J. Karr, David Thornton
Something else to address is the history of the "Fair Tax" push: it started with Scientology, mainly because the IRS would not recognize them as a valid religion for tax exemption. Here's a 2007 CBS article on it: https://www.cbsnews.com/news/scientologys-fair-tax-plot/. Note that the point is to eliminate the IRS, not really to make things work well. Also note that, as you said, it's a tax on the post-tax value - and that it likely will result in the government having to pay much more for good/services as well, which will require higher taxation...If there are exemptions to the "Fair Tax", then that will require higher tax levels for those items that are not exempted.
Let's have a little "laboratory of democracy" in action and let a less populous state that is interested in having a "Fair Tax" try it out for a while before trying to make a massive change to the current system.
Jan 23, 2023Liked by Chris J. Karr, David Thornton
A federal sales tax to replace the federal income tax is a great idea. It might even be the start of funding the federal government to provide only the services required by the Constitution. Maybe the states with a high cost of living and a large population would quit whining about paying more into the system than they get back from the feds. It would be a tax on individuals who choose to live where they do for their own reasons. Beyond funding national defense and a few other constitutionally mandated agencies, the feds would not meddle in affairs reserved for the states. Any other amenities would have to be funded by the individual states within the constraints of their own tax system and whoever they elect to govern the state.
Total brain-dead messaging bill with a message that's not that great.
I'll reconsider as soon as we see the CBO score this. I doubt we'll get to that point though.
Something else to address is the history of the "Fair Tax" push: it started with Scientology, mainly because the IRS would not recognize them as a valid religion for tax exemption. Here's a 2007 CBS article on it: https://www.cbsnews.com/news/scientologys-fair-tax-plot/. Note that the point is to eliminate the IRS, not really to make things work well. Also note that, as you said, it's a tax on the post-tax value - and that it likely will result in the government having to pay much more for good/services as well, which will require higher taxation...If there are exemptions to the "Fair Tax", then that will require higher tax levels for those items that are not exempted.
Let's have a little "laboratory of democracy" in action and let a less populous state that is interested in having a "Fair Tax" try it out for a while before trying to make a massive change to the current system.
A federal sales tax to replace the federal income tax is a great idea. It might even be the start of funding the federal government to provide only the services required by the Constitution. Maybe the states with a high cost of living and a large population would quit whining about paying more into the system than they get back from the feds. It would be a tax on individuals who choose to live where they do for their own reasons. Beyond funding national defense and a few other constitutionally mandated agencies, the feds would not meddle in affairs reserved for the states. Any other amenities would have to be funded by the individual states within the constraints of their own tax system and whoever they elect to govern the state.