The "Flat" Tax is Not Flat and the "Fair" Tax is Not FairSubmitted by myajace on Sun, 07/08/2012 - 12:02
Shift taxes? Increase taxes? Tax the rich? Impose new taxes? Use the tax code to influence public policy? What kind of libertarian tax reform plan is this? How about reduce, cut, eliminate, and abolish taxes? Not deductions, not exemptions, not credits, not shelters, not loopholes — taxes.
Two specific tax reform plans that some libertarians have fallen for are the Flat Tax and the FairTax. Both plans promise to invigorate the economy, increase employment, and raise everyone's standard of living. Neither one is true to its name; neither one is an incremental step toward overall lower taxes. Both are fraught with problems and contradictions; both are revenue-neutral plans that would fund the federal government at the same obscene level that it is now.
Neither the Flat Tax nor the FairTax is a step toward the libertarian goal of substantially reducing or abolishing the income tax; neither tax-reform plan is an incremental step toward lower overall taxes. They could be, however, if their promoters recognized that the problem is taxation itself, not the tax code. All they have done is shift the debate from how much of the wealth of the American people the federal government confiscates to the manner in which the wealth is confiscated.
The Fairtax is a consumption tax. It is the most radical tax reform plan, bar none.
We don't need compassionate tax reform that makes people feel better about paying their taxes; we need radical tax reform that reduces, cuts, eliminates, and abolishes taxes without replacing them with other taxes. As I have quoted Congressman Ron Paul on many occasions, "The real issue is total spending by government, not tax reform."