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Flat Tax or Fair Tax?

Richard_B Wrote: Jan 31, 2013 9:17 AM
With expanded manufacturing in the US the demand for labor would skyrocket. Unemployment would fall and when the demand for labor exceeds the supply, wages would go up. When workers are taking home 100% of their pay and their wages increase due to demand, they will buy more goods and services. This will increase federal tax revenue and also produce more jobs. More jobs will also result in more consumer spending. The net result will be a huge increase in the GDP. Possibly over 10% in the first full year under the Fair Tax and even higher the next year.
george293 Wrote: Jan 31, 2013 9:44 AM
I agree Richard, the fair tax would be a step in the right direction. It also would immediately reduce the size of the IRS by at least 75%. There soon would be no need for an IRS as all the taxation would occur at the cash register. Those who wished to not participate in the process could buy used products to save money. This would encourage thrifty behavior, recycling, and improve the over all wealth of the nation considerably.
Richard_B Wrote: Jan 31, 2013 9:18 AM
With all the good that can result from the Fair Tax, why has it not passed? The Fair Tax would take power away from politicians and return it to the people. No politician wants to give up power. Some statesmen are willing to transfer power back to the people but they are a small minority in Congress.

I’m at Hillsdale College in Michigan for a conference on taxation. The event is called “The Federal Income Tax: A Centenary Consideration,” though I would have called it something like “100 Years of Misery from the IRS.”

I’m glad to be here, both because Hillsdale proudly refuses to take government money (which would mean being ensnared by government rules) and also because I’ve heard superb speeches by scholars such as Amity Shlaes (author of The Forgotten Man, as well as a

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