You don’t think the current system suffers even worse for these points?
Canada has a national sales tax and I don’t see it solving any of the issues you raise. The arguments used to push this through are much the same as the ones you offer, but there was no benefits received to either consumers or business from the advent of the national sales tax. The only winner was the gov’t, as they now had a new source of tax revenues.
I’ve read both volumes on the Fair Tax and understand that a consumption tax is much more difficult to evade than an income tax, but some of the issues you raise are equally difficult to tax when on consumption (e.g., stock swaps).
As to the impact on the poor, I fail to see why a demographic group that lives off the income of someone else shouldn’t pay taxes. Either that or, if you don’t pay federal income taxes, you don’t get to vote in federal elections. Same for state and local elections. After all, nothing in the game, no voice in the game.
To the contrary, I do. The points enumerated are problems in any income tax - flat or graduated. My position is that the income tax itself must go.
Canada has a national sales tax and I don’t see it solving any of the issues you raise.
Canada has a value added tax or VAT they call a "GST". It is not a retail sales tax. I do not support a VAT national sales tax at all - and sure don't support a national sales tax in conjunction with income tax! EGADS MAN! That's what 0bama wants.
I support a national retail sales tax - an excise - which is quite different. It is by definition a consumption tax of course - not a VAT like Canada has.
Everyone - even the poor... should pay tax. And +1 on the idea to have net tax consumers not vote! Love it!
The best option is very clearly a consumption tax that is border adjusted. Personally, I want the tax system to the maximum extent possible, refrain from having hidden taxes. Any income tax does that - a lot.
Flat income taxers also need to be straightforward w/ the rate explanation - the rate bandied about is 17% tax inclusive [20.5% tax exclusive] but that does not include 15.3% t/i FICA. With FICA, tax inclusive becomes 32.3% tax inc or 47.7% tax excl.
The nrst excise has a rate of 23% tax inclusive or 29.9% tax exclusive. And that includes FICA payments.
Both are approximately revenue neutral.
But the base for retail consumption is so much larger, the rate can be lower. It collects as much from the illegals, the tourists, and anyone who spends as it collects from us citizens.