Image via WikipediaLet me begin by saying that I don't talk about economics much. I find the subject very dry and very boring. I learn what I have to to stay afloat. Aside from that, forget it.
The Fair Tax subject doesn't scare me. It's simple and easy to understand. That fits in perfectly for a busy mom with three kids and a house to run.
Over at newsmax.com, Matt Towery has written a piece about how the Republicans could use this subject to beat the Dems. Tax reform was the one issue that made Ronald Reagan so wildly popular, and, done right, the ideals of Reagan could once again rear their heads. Towery has made some wonderful points concerning how the GOP could sell the Fair Tax to moderates.
The Fair Tax would eliminate the need for those headache-causing forms we fill out every year. How convenient would that be! Half an hour (tops), and you're done. All it takes is figuring what percentage of your income (depending on what the rate would be set at) you need to pay. That's it.
I also feel it would eliminate the God-awful Earned Income Credit (EIC). This tax credit is designed to act as a sort of welfare for those whose income isn't very high. I know of people who have taken the EIC, and it makes me sick when they say that they got back almost double what they paid for taxes. If they got back everything they paid in, great. But why should they get back more than that?
The need for companies to hide their money would disappear. As the present system stands today, I would venture a guess to say that after tax deductions, credits, and loopholes, companies today pay a lower percentage of taxes than the average American. The percentage RATE a major corporation would pay would be the same as the middle class, but the AMOUNT of their contribution into the system would be much greater. If a corporation could keep more of its money, they would invest in and expand their business. Everyone wins.
Towery says if the Fair Tax was to be marketed as "Elimination of the U.S. Tax Return Act of 2012", people would probably be more willing to support it. Americans love comfort and convenience.
The Fair Tax is long overdue.