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Originally Posted by RidinHighSpeeds  What are your thoughts on the fair tax??
I was 100% for the fair tax until some questions were raised after watching the Republican debate today. I feel the fair tax is still a very good and fair system, but implementing this might actually slow down the economy after hearing Romney's remarks. Sure I will be able to keep more of my hard earned money, as everyone else, however products will be more expensive.
Could it be possible American's will be less willing to spend if things are more expensive to purchase, in return slowing down the economy? Or is it possible more money back in your pocket will allow people to spend more, boosting the economy?
Thoughts on the fair tax?? | Thanks for bringing up the issue boss. The idea of a fair tax is a great idea, on paper. The application would be problematic.
First, no tax system is 'fair'. It's merely a necessary evil.
Second, the concept of fair tax will have broad impacts on economic stability and will end up costing people more money than it saves them. The loss in investments would be staggering.
Flat tax, national sales tax, however you want to slice it, the only system that will facilitate our government is the graduated tax system. We like to influence behavior through the implementation of taxes, tax deductions, and tax incentives. Our whole process of rewarding/punishing social actions through taxation would be gone. We wouldn't be able to reward small business with tax breaks, we wouldn't be able to encourage workers with the earned income credit. Too many problems are not addressed by the proposals. |