Bob Smither has an excellent analysis of the benefits of the Fair Tax, which he supports. He takes special note of the thing I like most about the proposal – the fact that it puts the true and full cost of government in every voters face with every retail transaction:
The part of what we now buy that is actually someone elseâ€™s income, FICA, property, or corporate tax is about 48%. The federal take of this is about 22%. This is the only real tax that is collected – it is the only tax that cannot be passed along to others. As our state chair, Pat Dixon has observed, all the acrimonious debate about taxes only decides who collects the taxes, not who pays them.
Imagine if every American were to suddenly become aware of this fact! The Fair Tax makes this truth of economic life clearly visible to every consumer.
No longer would statists be able to pander to the voters with promises to tax someone else for promised government services. We would all know exactly who pays (all of us) and exactly what government is costing us. We would all know that the burden falls on everyone, as it already does, even if few of us realize it.
Any new government spending would have to come from the economic health of the economy, from increased revenues, or from a hike in the sales tax. No one could claim that the burden will be shifted to someone else.
Every cut in the size of government would immediately translate into more money in everyoneâ€™s pocket.
Why would anyone be a Democrat except to soak the rich? Why would anyone be a Republican except to seek protection from the Democrats?
Ah and if you’re asking “Who is Bob Smithers?” – He’s the non-Democrat, anti-Pelosi candidate for Tom DeLay’s old House seat.