Fair tax questionSubmitted by chabotjo on Mon, 04/22/2013 - 23:59
Ok. Someone explain this to me regarding the fair tax.
IF the fair tax became a way to end the fed, wouldn't that nulify the argument against it which normally states, "the fair tax is regressive because it unfairly harms the poor."
It seems to me that if the fair tax was implemented, and we killed the income tax and with it the fed. Then we would eliminate the feds sublime policy of inflation and devaluation. To my understanding, the fed unfairly targets the poor by their printing press which inflates prices after they print all the money to help the poor (among other things).
So, with the fed policy, you say you are going to give the poor 10 dollars but prices rise every year by at least 5%, then after a while that 10 is worth 1.
Would a fair tax system eliminate this devaluing because you would have to bank/budget on your total and projected true income based on how the economy was performing. Therefore no printing of money just because you need more.