Posted by
Georgiaboy on Wednesday, July 12, 2006 7:45:09 AM
As I mentioned in my bio, I am a big supporter of the
Fairtax. If you are not familiar with it, stop reading my blog right now and click on the link to learn more. The Fairtax is the most innovative and effective idea for tax reform out there. But, why should you support it? Besides the reduction in tax rates, the elimination of the IRS and the associated tax compliance costs, the removal of the government from our private lives, and the elimination of the government's ability to dish out favors through the tax system, one of the compelling reasons is the Fairtax's strong adherence to the principles of supply-side economics. The Laffer Curve teaches us that there will always be two tax rates that generate the same revenue, a high one and a low one. But, when dealing with taxes on investment, the rules change. Taxes on investment should always be zero. And this is where the Fairtax is strongest, it does not tax investment or education. A tidal wave of investment will provide the capital to put our economy into orbit. Taxless education will ensure that the next generation of Americans is as educated as possible. So, let's stop dreaming about how good the Fairtax will be and put some pressure on our Senators and Representatives to pass it.