http://healthcare-economist.com/2006/10/03/fairtax-proposal/ An unbiased look at today's health care issues Thu, 20 Nov 2008 07:16:36 +0000 http://wordpress.org/?v=2.6.3 http://healthcare-economist.com/2006/10/03/fairtax-proposal/#comment-170584 Sales Tax Fri, 05 Sep 2008 21:38:51 +0000 http://healthcare-economist.com/2006/10/03/fairtax-proposal/#comment-170584 I personally think a fair tax would be a great benefit to the country. I think it would solve a lot of the tax problems and discontent we currently see. There are a lot of advantages to a fair tax system. I personally think a fair tax would be a great benefit to the country. I think it would solve a lot of the tax problems and discontent we currently see. There are a lot of advantages to a fair tax system.

]]> http://healthcare-economist.com/2006/10/03/fairtax-proposal/#comment-664 BC Wed, 04 Oct 2006 22:48:30 +0000 http://healthcare-economist.com/2006/10/03/fairtax-proposal/#comment-664 I heard a debate on this subject a couple of months ago sponsored by the Donald and Paula Smith Foundation. The two biggest problems that I see with it, aside from the implicit tax on wealth as it is consumed after already paying taxes as the wealth was accumulated are: (1) it would apply to some 84% of GDP as I recall whereas the most comprehensive value added tax in the world to date apllies to less than half that percentage of the economy, and (2) the way most people think of and calculate a sales tax, this one is really 30% and not 23%. That is, an item that cost $77 without the tax would cost $100 with it. The tax is portrayed as 23% of the gross price of $100, not 30% or so of the pretax price of $77. I also think the underground or off the books economy would be an enormous problem. Bottom line: though it might actually benefit me personally, I think it is unworkable as proposed and would not support it. I heard a debate on this subject a couple of months ago sponsored by the Donald and Paula Smith Foundation. The two biggest problems that I see with it, aside from the implicit tax on wealth as it is consumed after already paying taxes as the wealth was accumulated are: (1) it would apply to some 84% of GDP as I recall whereas the most comprehensive value added tax in the world to date apllies to less than half that percentage of the economy, and (2) the way most people think of and calculate a sales tax, this one is really 30% and not 23%. That is, an item that cost $77 without the tax would cost $100 with it. The tax is portrayed as 23% of the gross price of $100, not 30% or so of the pretax price of $77. I also think the underground or off the books economy would be an enormous problem. Bottom line: though it might actually benefit me personally, I think it is unworkable as proposed and would not support it.

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