Once again, Chaz makes a claim about Jeb Bradley‘s tax plans, calling them "half baked". He’s wrong again and doesn’t even try to back it up. Over at NHInsider, he simplistically tosses away Democrat cry for "Change". Instead, he settles for what Carol Shea-Porter promotes – the status quo. Why?
Methinks because it takes away the Liberals greatest weapon for social engineering – the income tax code. With it, they can control our behavior. If they like something or a behavior, make a tax credit status for it. Don’t like something or a behavior – raise the tax on it. Instead of putting Joe and Jane Six-Pack’s family first.
The first idea, the flat tax should do away with the the income tax (otherwise, why bother?). Everyone pays a consumption tax – you owe on what you buy instead of what you earn. If applied universally, it is regressive – the poor pay the same as the rich percentage wise. However, since one can assume that the rich will buy more expensive things, they will pay more in taxes on an absolute level. The problem is that it would probably be implemented as a VAT – the tax is implemented at every level of manufacture and sales (those GREEDY politicians!). But guess what – you get to keep more of what you earn – no more taxes taken out of your paycheck!
The Fair Tax is also a consumption tax that also depends on doing away with the income tax (again, you get to keep what you earn – your take home pay goes up). However, it is only paid once – at the end of the supply chain and only by the actual consumer. It’s rate is projected to be about 23% to be revenue neutral compared to our current system of taxation.
It’s main feature, other than getting rid of the IRS and the tax code, is that it protects the poor with a "Prebate" – effectively, a check would be sent to all families by the Feds each month that "rebates" the taxes paid on the basket of goods that a family would purchase at the poverty level. Thus, for the poor, they pay no taxes – those purchasing above the poverty line pay taxes. Buy more – pay more taxes.
Which in the end, gives more individual freedom and helps society in general. If you are not spending your money, you are saving it or investing it. The latter serves as the engine for a new prosperity as that money can serve as capital for more jobs.
