v'ܩ 7 Reasons I Support the Fair Tax, and You Should Too
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7 Reasons I Support the Fair Tax, and You Should Too

February 9th, 2010

1. The Fair Tax Gets Rid of the Hidden Costs in Goods
What do I mean by this? Right now all of the things you buy have a lot of markup to cover the cost of taxes on businesses. Businesses have to pay social security taxes for every employee along with high corporate taxes on profits. If you take these away competition will bring the price of everything down significantly.

2. The Fair Tax Will Bring Businesses to America Which Means JOBS
Right now the current tax code is decidedly against businesses. The Fair Tax would lower the cost of doing business dramatically, and that means we could compete on a global scale. We can actually export goods on an even footing again. That means manufacturing jobs would come back lowering our unemployment.

3. The Fair Tax Gets Rid of Our Current Tax Code

Enough said.

4. The Fair Tax Would Tax Drug Dealers and Other Illegal Income
Needless to say they are not paying income taxes but they do buy things in our country. A fair tax would broaden the tax base to include these criminals as well as the millions of illegal immigrants in our country.

5. Did I Mention Getting Rid of the Tax Code?
It is several volumes long and the loopholes are huge. People making almost nothing pay a similar tax rate to millionaires in some cases because of our complicated code. Special interest groups have put so many ridiculous things into our income tax system it is ridiculous.

6. Stop Taxing Investments, Create More Jobs
A fair tax would stop taxes on capital gains and other investment income. This would create an environment where people want to invest in businesses. This creates even more jobs.

7. The Fair Tax Lets You Take Home Your Whole Paycheck
We will have more jobs and everyone gets to take home their whole paycheck. Wouldn’t it be nice to have your whole check to spend on whatever you want? Wouldn’t it be nice to be able to save and invest as much as want?

These are just a few reasons that the fair tax makes sense. If you are interested in learning more check out my article on the fair tax pros and cons, the fair tax website, or The Fair Tax Book by Neal Boortz.

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Author: Derek Clark Categories: General Politics Tags:
  1. Jeffrey
    February 9th, 2010 at 20:59 | #1

    The FairTax would be the single greatest piece of legislation to give power back to the people and away from the Federal gov’t.

  2. February 9th, 2010 at 22:10 | #2

    I am all for this (or a flat tax) across the board for everyone, but my problem with it is this: would this bring in more revenue for the Federal government or less? If less, what programs do you cut? Our politicians don’t have the balls to make the necessary cuts to get our budget back on track. The American people love their welfare programs way too much. Would this tax result in less money and if so, how do we keep the budget safe?

  3. February 10th, 2010 at 00:10 | #3

    In theory it is revenue neutral. Let’s be honest though it doesn’t matter how much money we bring in or how we bring it in. Any way you look at it the politicians don’t have the balls to balance the budget and get us out of debt. This is just a more “fair” and less complicated way of collecting money. Fixing the deficit is a different (and bigger imo) problem.

  4. February 10th, 2010 at 12:00 | #4

    @Derek Clark
    Absolutely. I think there are some politicians somewhere that have the balls to fix the budget. But, so many are damn corrupt. I am working on a piece about Senator DeMint’s proposal to stop earmarks entirely. It’s not much money, but it could save at least $30 billion a year. It’s a start.

  5. February 10th, 2010 at 13:28 | #5

    Stopping earmarks would be a nice start. Far too many bills get passed simply because votes are bought and sold with some benefit going to that person’s district. Even if it doesn’t save that much money it is well worth it.

  6. Henry
    February 10th, 2010 at 16:57 | #6

    You might want to reconsider whether the FairTax would be such a job-creator.

    Currently, corporations pay tax on their PROFITS. Profits are essentially revenue minus all expenses. The average corporations profit margin is around 10%. So, even at a maximum corporate tax rate of 35%, a corporation would only pay 3.5% of its revenue in taxes. (10% x 35% = 3.5%)

    Under the FairTax, any corporation that sells to consumers would payt taxes on its REVENUE. So, even if the FairTax were only 23% (which is much lower than most economists believe it would need to be), that corporations tax obligations would be over 6 times as high as under our current income tax system. (i.e. 6 x 3.5% = 21%).

    Corporations that sell to other businesses or sell overseas would not be taxed, as business expenses and foreign purchases would not be subject to the FairTax. So, the end result is that no business is going to sell to U.S. consumers except at very high prices, which would depress both consumption and profits.

    Thus, under the FairTax, the U.S. might become a better place to PRODUCE goods, but it would be a terrible place to SELL goods. (Which is sort of the situation India and China find themselves in today.)

    Just thought I’d throw that into the mix.

  7. Kaleb
    February 11th, 2010 at 15:57 | #7

    However the FairTax does not simply gouge into the revenues of corporations. It would increase the price of merchandise based on the 23% inclusive (~30% exclusive) tax. So these items sit on the shelf with the tax built in them already and when you buy them, your receipt tells you how much was tax (this is the 23%) and how much the item was priced by the store.
    So yes it will inflate prices (however, read about the inflationary effect of income taxes on consumer prices), but it does not cut into revenue. Also, corporations receive, I believe, .25% of the taxes they collected in cash from the government for collecting the tax. I agree that the FairTax may disrupt consumption may cause shocks in the short run. But in the long run aren’t we better off being savers than insatiable consumers?
    Please let me know if you think I’ve got any of this wrong.

  8. February 11th, 2010 at 16:06 | #8

    Thanks for your take Kaleb. I was about to post something similar. Corporations aren’t going to change their pricing, the prices will come down because their costs will come down. add the bigger tax back in and the price paid at the register will be similar and the profit to the company will be similar.

  9. Henry
    February 11th, 2010 at 16:58 | #9


    I certainly agree that we should increase savings and decrease consumption, which the FairTax would do. Of course, this would not be without consequences (as shown by our current recession, which is being made more severe by reduced consumption), but I believe in the long run it would be good for the country. I also wholeheartedly agree that we need to reduce government spending. My real point was that the FairTax would not be the panacea that some of it’s supporters (not necesarily those here) would make it out to be. Like all tax plans and government programs, it too will have unintended consequences.

  10. Kaleb
    February 12th, 2010 at 00:05 | #10

    I am quite an avid FairTax supporter, but I agree with you completely that there will be unintended consequences as you suggest. The destruction of many tax preparing jobs (however, isn’t it odd that hundreds of thousands of people are employed to simply comply with a tax code?) may be regrettable as well as the possibility of the curtailment of consumption (to the end that it has a detrimental economic effect). Another regrettable problem involves the scale of the entitlement program to make the FairTax a progressive tax.

    An interesting thing that you would maybe enjoy looking into is the effect of business taxes on wages and product prices. The Tax Foundation has a lot of supportive research in this field that is stunning. Here’s one good, short synopsis of the idea by Gregory Mankiw.

    Ultimately, FairTaxers need to be vigilant to get this thing passed, but like you said, we cannot envision it as the miracle that will be America’s savior and right all wrongs.

  11. Kaleb
    February 12th, 2010 at 00:07 | #11

    Here’s the website that I tried to post, by Gregory Mankiw.


  12. Henry
    February 12th, 2010 at 10:34 | #12

    Kaleb — Personally, I believe should eliminate corporate income taxes altogher, but then tax capital gains and dividends as ordinary income.

  13. March 12th, 2010 at 14:13 | #13

    i love this its great

  14. sherilla wriglesworth
    June 17th, 2011 at 12:26 | #14

    “everything the consumer buys has hidden taxes, federal,state,city and more. If you take these away competition will bring the price of everything down significantly.” the tax cuts for the rich didn’t bring the price of everything down significantly. tne tax remains the same each year and the price goes up.the rich keep the pre-paid tax. the fair tax just has the little man paying what the rich aren’t paying now. the USA need a SPENDING TAX. take all taxes out of the price of products and tax 6%-10% on every dollar spent on anything by everyone at the time of purchase. taxes are sent to the state, who can collect interest on taxes due to the government. the governement sends the state a bill and the states fund a govenment bill. the state holds the money collected. the govenment can not be trusted with taxpayer money. SSI and Medicare are pre-paid programs that the government has raid it’s surplus and taken its interest payments to fund tax cut bills, subsides, R & D, and bail-outs, gov. pension and med., all of which taxpayers benifit nothing.SSI and Medicare the gov want to reform and give themselves debit forgiveness of the stolen pre-paid funds.

  15. Henry
    December 12th, 2011 at 12:44 | #15

    I got this from Political Correction Website: This is according to Bruce Bartlett, Tax Analyst Report: Under the Fair Tax, every time you purchase a service, you would probably get 2 prices_ one you can pay with a check or credit card that includes the Fair Tax and one you can pay in cash and save 23%. Because there would no longer be any audits of income , since the IRS would have been abolished, tracing such tax evasion would be extremely difficult. This is how underground economies and illegal drug activities are going to run. No paper trail and no money trail. Without paper work, underground economies don’t exist.