Was Mitt Romney right about the FairTax?
FairTaxer @ WordPress has an interesting post regarding Romney’s comment on the FairTax discussing a paper “A Comparison Of Governor Romney’s Middle-Income Tax Proposals Vs. The FairTax Legislation”. Hank asked us to post it for discussion.
During the 12 September 2011, Republican Presidential debate, Governor Romney made the following statements in response to a question about the FairTax.
“But the way the fair tax has been structured it has a real problem and that is it lowers the burden on the very highest income folks and the very lowest and raises it on middle income people. And the people who have been hurt most by the economy are the middle class. And so my plan is for middle income Americans, no tax on interest, dividends or capital gains. Let people save their money as the way they think is best. We’re taxing too much, we’re spending too much and middle income Americans need a break and I’ll give it to them.”
The claim made by Governor Romney, that the FairTax would lower the tax burden on the lowest and highest incomes while raising it on the middle-income wage earner (current tax code implied), is inconsistent with the preponderance of information that may be accessed from multiple sources comparing the FairTax with the current tax code. That being so, I will refrain from further comment on this point made by the Governor and defer to the reader to present argument to the contrary. As to the Governor’s implication that his tax proposals will be less of a burden on the middle-income earner than that anticipated with the FairTax legislation, I have not, as of this writing, discovered a study that would either directly support or discredit the Governor’s claim. Therefore, it will be the intent of this document to present the specifics of the Governor’s proposals with that of the FairTax legislation for the purpose of conducting a comparative analysis that will either substantiate or refute the Governor’s claim.