A Mickey-Mouse Tax Plan to Save America

The Growth Stock Wire ^ | A Mickey-Mouse Tax Plan to Save America | Jeff Clark

[econjack]

There is no manipulating the the Fair Tax. Everybody gets the prebate.

Past history says this is wrong. As long as a Prebate exists and can be changed by law, Congress can screw around with it to their own advantage. How long to you think it would be before the lowest income group start bitching because the rich also get the prebate? Congress would do something--probably bad--to change it.

[Little Ray]

I agree, but then it wouldn’t be the Fair Tax any more.
It would be the “Earned Income Tax Credit plus National Sales Tax” tax or something similar.

[econjack]

You're right, it wouldn't be. I've read both books on the Fair Tax and it clearly is better than the current tax code. However, I just know that the Prebate would screw it up in the long run. I prefer a flat tax...period. That way, there is no distortion of resource allocations like there is now. If you used Friedman's 17% tax rate, you wouldn't even have to file an income tax return. Every income source would simply withhold 17% and mail it in. The IRS would be reduced to a handful of people and all those tax attorneys would have to find something else to do.

[Little Ray]

As the saying goes, “Perfect is the enemy of good enough.” I’d settle for a Flat Tax. But I want the Fair Tax.