A couple of thoughts I wanted to share with the pending tax date. I was introduced to the idea of "flat tax" many years ago and thought that in general it was a good idea (in principle at least), however I had the same misgivings about it (impact on the poor, etc) as opponents. I was familiar with the FairTax idea but didn't really know the particulars - I just thought it was a rehash of the flat tax idea that had been floating around for a while. I'm currently reading "The FlatTax Book" and it's completely eliminated my misgivings as it's very different from my assumptions. I think everyone should read this book or at least research it, as there are many important ideas presented by the proposal.

Before going on, let me say that the largest arguement I've heard against FairTax has been the burden on the poor - there is an estimated 22% consumption tax on all goods and services that at the face of things seems to kill the deal (it's often used as the arguement against it). What isn't provided is the opposite arguement - Woud you pay 22% on the cost of goods you buy, if you didn't have about 30% of your salary withheld? With the elimination of the Federal Income tax, you get all your money - withholding goes away. So at the very least, there's a savings from what you make compared to what you buy. Also, the plan eliminates the following: Individual Income Tax, Alternative Minimum Tax, Corporate and Business Income Tax, Capital Gains Tax, Social Security Taxes, Medicare Taxes, Self Employment Tax, Estate Tax, and Gift Tax, all without lessoning the income the government currently attains via taxation (in other words, no change in the actual amount the US government collects so it's current budgetary programs would not be affected).

Besides which, everything is simplified and the costs of goods should decrease as all the embedded taxes are removed. I know I'm probably going to get a lot of responses as my statements so far are simplified, so bring them on!

-- John