Chapter

The Fair Not Flat Tax

in Fair Not Flat

Published by University of Chicago Press

Published in print April 2002 | ISBN: 9780226555607
Published online March 2013 | e-ISBN: 9780226555669 | DOI: http://dx.doi.org/10.7208/chicago/9780226555669.003.0007
The Fair Not Flat Tax

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The path to sensible tax reform is clear. One should replace the inconsistent income and ineffective estate taxes with a single, consistent, progressive spending tax: the Fair Not Flat Tax. The Fair Not Flat Tax is moderate in many ways. The major practical difference under the new law will be that taxpayers who save would not have to worry any more about complicated rules like limits on IRAs or the details of how their savings and investment transactions are taxed. This chapter proposes a way to simplify life even more for most Americans by substituting a national sales tax or VAT for the lowest positive rate bracket of the Fair Not Flat Tax. The Fair Not Flat Tax holds out the appeal of a simple, efficient, and fair tax system that all Americans can understand and endorse, and one that will lighten the record-keeping burdens ordinary people face. Once the Fair Not Flat Tax has emerged incrementally, the move to replace the two lowest rate brackets with a national sales tax or VAT and a rebate is simply an expert's substitution of roughly equivalent forms.

Keywords: flat tax; fair tax; spending tax; law; America

Chapter.  5584 words. 

Subjects: Political Economy

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