Quote:
Originally Posted by redpoint5
I'm not familiar with FairTax, only my own thoughts on the matter.
Perhaps income tax will always be the better solution, but it at least needs to drop the thousands of special interest exemptions. A deduction for missing an eyeball? 
The only reason I suggest a federal sales tax is that it seems to be successful at the state level, considering most have it. If only 5 states favor an income tax over a sales tax, why would sales tax be preferred given the disadvantages you mention? |
On the Federal level I think we should:
- Eliminate Income tax deductions, rebates, and credits. All of them
- Tax all income the same.
- Drop corporate income taxes because in the end the customer pays them. Corporate earnings should be taxed when it is distributed to investors or if companies try to take the money outside of the USA.
- Add a Federal sales tax.
The vast majority of states have a combination of sales, property and income tax. Only 5 states do not have a general sales tax and only 7 do not have an income tax. That is pretty balanced.