Quote:
Originally Posted by slayda
The only problem with the "Fair tax" is that it is not fair. The only problem with a national sales tax is that it wouldn't be long before they needed more money to give away to some special group and would start income taxes again (temporarily, of course but it would become permanent). Just my cynical opinion of course.  |
That's why the FairTax proposal includes a Constitutional Amendment to repeal the Amendment that allowed income taxes in the first place (they were originally prohibited by the Constitution). At the time, there was a proposal that the income tax be capped at 6% (I think it was), but it didn't pass because "everyone" agreed the rate would never go that high.
If they need more money under the FairTax plan, they have to raise the rate, but that would be quite visible to the public (very few are so out of it that they don't notice their prices at the register jumping) so it would have an automatic pressure to lower it again. That's the idea, anyway. The explanation on
their site is, of course, much more detailed.