It seems like out of all the serious tax reform proposals, the FairTax is gaining the most momentum. It’s basically a national sales tax of 23% that would replace all federal taxation.
Pros of the FairTax:
– Easy to understand
– Low compliance cost
– Taxes are “voluntary”
– Encourage saving and discourage spending
– Does not penalize making money
– Encourage reuse, instead of buying
– Retail prices (pre-tax) could fall since corporations will no longer have to pay taxes
Cons of the FairTax:
– We are still getting taxed at a signficant percentage
– Tax rate could increase in the future
– Does not address the root problem – federal spending
General:
FairTax.org
FairTax Proposal
About.com
Wikipedia
FairTax Scorecard
FlatTax FAQ
GA FairTax
Petition
People:
John Linder
Neal Boortz
Blogs:
FairTaxBlog
John Linder
More reading:
The FairTax… Again
Winner and losers under the FairTax
50 Reasons I support the FairTax
Ron Paul – Who Opposes Simpler, Lower Taxes?
The Fair Tax Fraud
The Consumption Tax: A Critique