FairTaxFraud, I don’t think anyone is interested in your No Tax plan. Taxing all earnings from investments at 50% would destroy this country.
Tim Worstall:
The problem with the VAT is it burdens the entire supply chain of every product with the paperwork and associated compliance costs. I see no reason we wouldn’t also keep the income tax in some form and its associated paperwork and compliance costs because the Europeans do.
The FairTax is far more efficient. We don’t need to copy inefficient European ideas. We are already the most productive people in the world. The FairTax will relieve our producers from these insane inefficiencies and allow border adjustments better than the VAT. Once we are on a level playing field with the rest of the world our exports will soar.
I’ll take the risks of evasion. I really don’t think it’s an issue since businesses have so much more to lose.
Economists have shown with their econometric models that GDP will double or more and be sustainable with the adoption of a consumption tax. We need the economic growth that is the main promise of the FairTax to be able to survive the ever escalating costs of entitlement programs.
