Replacing the Income Tax
Stephen Eldridge has taken a detailed look at the FairTax and written a critical paper of the tax plan. While I do not share Mr. Eldridge’s conclusions or agree with many of his arguments, he has put together a well documented paper worth reading and discussing.
After much study and analysis, I believe that the H.R. 25 sales pitch is full of superficial arguments and hidden truths aimed at a public which does not have the interest, time or training to dig under the surface to understand how H.R. 25 really works and how it affects our economy and lives. Upon further research, additional negatives emerged.
It is a deadly prescription for curing our existing Internal Revenue Code malady. If it is ever enacted, H.R. 25 will surely kill the patient. We must look for a cure that makes us healthy.
While covering a great range of topic points including reviewing other tax plans and suggesting a solution, he focuses on several main points with H.R. 25.
- Wealth Redistribution, Progressivism, Class Warfare is expanded
- The Sales Tax Base is far broader than any tax system in the world
- The Sales Tax Rate may be very high – the “sticker shock” will destroy our economy
- The States are affected negatively
- The “IRS” grows worse than ever
- America’s Home Buyers and Builders will suffer greatly – Banks will not lend on the sales tax
I think by far, Stephen’s best argument is on wealth redistribution, progressivism, and class warfare. I’m not sure if his final solution presented in the paper would ever be viable for the American people, but I respect his effort and applaud his goals.
Here it is for your pleasure and discussion (also added to the research section of the blog). “Replacing the Income Tax“