The cost of doing business is lower, investment is no longer taxed, and businesses can compete with foreign products better. Its not neccesarily a lower tax, but a removal of tax on production. Its cheaper to order products overseas and sell here, than it is to produce here and sell here. That changes under the fair tax.

http://www.fairtax.org/PDF/FairTax_o...ufacturing.pdf

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

Just the opposite it would empower low income individuals as they now have an removal of the penatly to work, save, and invest.

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

If the marginal tax rate is lower then 23% there incentive to work would go down. Investments would also be less attractive because they too would be taxed at a non-trivial rate.

Most conservatives and sensible economists recognize that either the flat tax or the fair tax would be vastly better for our economy than the current idiotic tax code. And most even recognize that consuption-based taxes such as the fair tax are superior to taxes on income and investment.

The objections and opposition are largely based on logistical and practical implementation concerns and (such as the aforementioned threat of the income tax creeping back over the years in ADDITION to the national sales tax).

I think what we need is an intermediate step to demonstrate the economic power that would be unleashed by shifting to a consumption based taxation system. We need to have a five year plan which steadily reduces income tax rates with steadily inceasing national sales tax rates until we have a relatively low flat income tax rate, and a relatively low national sales tax on all retail goods and services.

It is not is not ideal, but it is far superior to the current mess.

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"It's a good feeling to shoot a bad guy. Something you democrats would never understand. Americans are homesteaders, we want a safe home, keep the money we make, and shoot bad guys!"

----Denny Crane

Most conservatives ?

Most "sensible" economists ?

Vastly better ?

Could you please present facts that support your suppositions.

No wonder I am "Skepical"

IMO our economic problems are not caused by taxation but by the inability to control inflation and provide adequate life sustaining jobs (in our country) for a growing population VS diminishing resources and the transfer of transforming raw mateials into finished goods to far away places by workers paid minuscule wages.

You can read the latest economic research paper here:

http://www.fairtax.org/site/PageServ...about_BHI_0607

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

Inability to control inflation? Inability to provide life sustaining jobs? Talk about utter nonesense with NO basis in reality.

In terms of REAL inflation (monetary rather than changes in certain prices as a result of supply and demand pressures) inflation, while having mildly upticked over the last three years) is still rather mild by any and all historic measures.

Unemployment is near historic lows, below the 30 year average, and at a level which 15 years ago was considered "full".

People who are living in poverty are doing so because of THEIR OWN choices in life which has left them ill-prepared to take advantage of the abundance of opportunity this country provides. It is a simple matter of fact that (as George Will continuously points out), there are three things that every single person in this country has direct control over in their lives that all but guarantees they will not live in sustained poverty:

1. Don't have children until you are married
2. Don't get married until you have a high school education
3. Get a highschool education

Add to that, don't become a substance abuser and you have basically accounted for 99.9% over those living in chronic poverty.

So, stop bitching and whinning about this or that not being "provided". This country provides the single best and most important thing that an economy can and should "provide" to people...opportunity. It is the indidual's responsibility to take advantage of that undeniable abundance of opportunity.

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"It's a good feeling to shoot a bad guy. Something you democrats would never understand. Americans are homesteaders, we want a safe home, keep the money we make, and shoot bad guys!"

----Denny Crane

[quote=Marcus1124;1143299]"Unemployment is near historic lows, below the 30 year average, and at a level which 15 years ago was considered "full".

The answer: ?
Rome burns and Nwero fiddles !

[quote]skeptic1

Quote:

Originally Posted by Marcus1124 "Unemployment is near historic lows, below the 30 year average, and at a level which 15 years ago was considered "full".

Wow, such thoughtful and intelligent answers, totally devoid of any substance or facts.

Well, the FACT is that unemployment IS below the thirty year average (a thirty year period which has seen unparalled growth, wealth, and prosperity in this country), and stands at a level that used to be roundly considered "full" employment. True monetary inflation is at a rather reasonable rate (below 2%).

And as for Nero fiddling, would you care to show some data supporting your dismisal of my analysis? What percentage of married highschool graduates with children live in poverty in this country? If you don't know, then you have no rational basis to dismiss the observation.

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"It's a good feeling to shoot a bad guy. Something you democrats would never understand. Americans are homesteaders, we want a safe home, keep the money we make, and shoot bad guys!"

----Denny Crane

Let us not forget the other reason that the Fair Tax or Flat Tax will not be put in place with in this country is "The end of Class warfare."
As it is now the political machine can tell the people of the country that they and only they will go after the very rich and make them pay not only their share but more. And then make deals with the very rich to make sure that they(rich) get the breaks with in the tax codes.
As it is today each and every one of us can use the codes , that is if we have the time or money to pay some one to find them , to put them to work for us.
What is fair about the system today? not one thing.
What is wrong with each and every one of us paying the same %rate on a sales tax? The more that you spend on new items the more you pay, but each is paying the same %.

The line that the rich need to pay is just wrong with this country when we say with the other side of the mouth that if you work hard and save you too could be rich.

I like people that have money, as they have the money to spend.

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Fear the Government

Quite right, which is why we have to educate people and remove polticians. We are getting there. We have never had as many congressman supporting the Fair Tax, or so many candidates for all offices supporting it. Books on it are bestsellers, books on Taxes!

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http://www.fairtax.org

Elminate all taxes on income and replace with a national sales tax.

Actually consumption-based taxes have similar properties to income based taxes when they are paired accordingly. For example it is easy to consider a income tax that would cause individuals to face the same incentives as a they would under the "fair tax". Income would be taxed at an identical rate and then there would have to be an investment subsidy. In fact, though it would be a difficult task, you could mimic the current tax system using a consumption tax and a series of subsidies.

If it is to be done, staging it is the best way to do it. It gives people a chance to see whether it actually works and allows for implementation problems to be addressed without serious consequences..